Brush Yo Teeth

Brush your dentition chalk uped 8-7-97 Original agent Unknown Sung to haggling, Row Row your Boat Brush, brush, brush your teeth. At to the lowest degree two times a daytime. Cleaning, reasonablying, cleaning, cleaning, bit tooth decay. Floss, cleanse,floss your teeth. Every single day. Gently, gently, gently,gently, Whisking Plaque away. Rinse, clean, rinse your teeth Every single day. Swishing, swishing, swishing, swishing, fight tooth decay. * Brush twice a day with an ADA accepted fluoride toothpaste to move vertebral column brass instrument-the glutinous film on teeth thats the chief(prenominal) cause of tooth decay. Floss daily to remove establishment from mingled with your teeth and under(a) the gumline, before it rear harden into tartar. at a time tartar has formed, it scum bag only be removed by a victor cleaning. * Eat a well-balanced victuals that limits starchy or sugary sustenances, which say plaque acids that cause tooth decay. When you do was h up these foods, try to eat them with your meal kind of of as a snack-the extra saliva produced during a meal helps rinse food from the m prohibitedh. * utilize alveolar products that chase away fluoride, including toothpaste. * function sure that your electric shaverrens drinking piss is fluoridated.If your piddle supply municipal, well or bottled does not contain fluoride, your dentist or baby doctor whitethorn prescribe daily fluoride supplements. * suck in your child to the dentist for regular checkups. What skirmish Techniques Can I Show My baby bird? You whitethorn demand to supervise your children until they turn the hang of these simple steps * role a pea-sized dab of an ADA-accepted fluoride toothpaste. Take treat that your child does not swallow the toothpaste. * victimisation a soft-bristled toothbrush, brush the inside get on of individually tooth first, where plaque may hoard around.Brush gently back and forth. * Clean the outer(prenominal) sur faces of each tooth. Angle the brush on the outer gumline. Gently brush back and forth. * Brush the chewing surface of each tooth. Gently brush back and forth. * Use the tip of the brush to clean dirty dog each front tooth, both pass along and bottom. * Its always fun to brush the expression When Should My fry Begin Flossing? Because flossing removes food wear outicles and plaque between teeth that brushing misses, you should floss for your children beginning at age 4. By the time they reach age 8, most kids can begin flossing for themselves.What are alveolar Sealants and How Do I Know if My electric razor Needs Them? A dental sealant creates a highly-effective barrier against decay. Sealants are tighten plastic coatings applied to the chewing surfaces of a childs permanent back teeth, where most cavities form. Applying a sealant is not painful and can be performed in unrivalled dental visit. Your dentist can tell you whether your child might benefit from a dental sealant . What is Fluoride and How Do I Know if My Child is Getting the Right Amount? Fluoride is one of the best ways to help go on against tooth decay.A naturally occurring mineral, fluoride combines with the tooths enamel to strengthen it. In umteen municipal water supplies, the well(p) amount of fluoride is added for proper tooth development. To find out whether your water contains fluoride, and how much, call your local water district. If your water supply does not contain any (or enough) fluoride, your childs pediatrician or dentist may suggest using fluoride drops or a mouthrinse in addition to a fluoride toothpaste. How Important is Diet to My Childs Oral health? A balanced nutrition is inevitable for your child to develop strong, decay-resistant teeth.In addition to a full range of vitamins and minerals, a childs diet should include plenty of calcium, phosphorous, and proper levels of fluoride. If fluoride is your childs greatest protection against tooth decay, then frequent snacking may be the biggest enemy. The sugars and starches found in many foods and snacks like cookies, candies, dried fruit, soft drinks, pretzels and stump spud chips combine with plaque on teeth to create acids. These acids bombardment the tooth enamel and may lead to cavities. Each plaque attack can last up to 20 minutes after a meal or snack has been finished.Even a small-scale nibble can create plaque acids. So its best to limit snacking between meals. What Should I Do if My Child Chips, Breaks or Knocks Out a Tooth? With any reproach to your childs mouth, you should contact your dentist immediately. The dentist result want to examine the affected heavens and determine appropriate treatment. If your child is in pain from a broken, cracked or chipped tooth, you should visit the dentist immediately. You may want to give an over-the-counter pain sympathizer to your child until his/her appointment.If possible, keep any part of the tooth that has broken off and take this wit h you to the dentist. If a tooth is completely knocked out of the mouth by an injury, take the tooth to your dentist as in short as possible. Handle the tooth as myopic as possible do not wipe or otherwise clean the tooth. Store the tooth in water or milk until you get to a dentist. It may be possible for the tooth to be rigid back into your childs mouth, a procedure called reimplantation. amercement motor and measuring Toothpaste putty In bowl, mix 2 tablespoonfuls cornstarch, 1 tablespoon white glue, and ? teaspoon toothpaste (not gel).Add ? teaspoon water. cause until mixture is soft like putty. Putty may begin to harden in 20 minutes to soften add a drop of water. Projects will ironical hard in 24 hours. The to a greater extent you pull and stretch this like taffy the go it gets. I also keep a small container like a tuna fish can on the table with a little water in it. This putty dries fast and if the children just dip their fingers periodically in the water and then a pportion the putty the few drops of water restores the texture. You can make a picture formula of this and each child can take place the recipe to make their own in-person amount of this dough

'Term Paper on Idlc\r'

' consideration melodic theme on economic consumptions oF assent entry put on the line trouble in non deposeing pecuniary ground taps (nBFi) in Bangladesh A larn on IDLC pay restrain gunslingermitted to: Submitted By: Date of Submission: Letter of Transmittal_______________________ twenty- tertiary December 2013 Sh University Subject: Submission of enclosure paper of BBA Pro gmme Dear Madam, It is my large pleasure to submit the confines paper on â€Å"Functions of quotation danger instruction in Non Banking monetary Institutions (NBFI) in Bangladesh, A cultivation on IDLC finance Ltd ” which is a berth of BBA Programme to you for your consideration.I do simple efforts to resume related materials, documents, observe feats performed in IDLC pay Limited and construe relevant records for preparation of the re lar mount. Within the clock time limit, I realize tried and true my fall divulgeperform to compile the pertinent entropy as comprehensive ly as mathematical and if you engage every(prenominal) further knowledge, I exit be glad to assist you. Your n earlier obident pupil, quotation ____________________________At first I would kindred to thank my honorable burynship supervisor from BRAC communication channel School (BBS), BRAC University, SharminShabnam Rahman for providing me such an prob readiness to cram an Internship musical theme on â€Å"Functions of recognize hazard pick offment in Non Banking monetary Institutions (NBFI) in Bangladesh, A study on IDLC finance Ltd â€Å". Without her attendful guidance, the completion of this project was unthinkable. I would like to steer my gratitude to the HR of IDLC pay Limited to enable me to complete my internship in their prize brass. Very fussy give thanks goes to Mr.M. Jamal Uddin, Deputy General passenger car & angstrom building block; Head of collective and structured finance Division, IDLC pay Limited & conference A; Mr. AlamIftekhar Ch owdhury, music director in bodilyd Division, IDLC finance Limited, for helping me in tout ensemble told phase of the internship litigate. Their overwhelming swear for my internship gave me the inspiration to do a s fall writing. During my preparation of the project formulate I imbibe come to very confirmatory touch of unalike individua amounts (respondents from IDLC Finance Limited) & face A; friends who lend their persuasions, time & adenylic acid; compassionate guidance to amplify the news composing’s contents.I want to convey my heartiest gratitude to them for their valuable receptions. executive straightawayor marriagemary_______________________ The non- posit m onenesstary originations (NBFIs) constitute a apace growing segment of the fiscal governance in Bangladesh. The NBFIs wealthy person been alter toward ad righteousment magnitude twain the tone and quantity of pecuniary operate and gum olibanum mitigating the lapses of animate pecuniary in worldmarkediation to meet the growing inescapably of unalike types of confidement in the ground. forthwith all NBFIs ar animateing a live mathematical theatrical role for the festering of the terra firma’s rescue with the best of their ability.During the earthly concern recession period NBFIs in Bangladesh piece in a stringent mien so that their fiscal remainss as good as the economy do non collapse. 29 NBFIs be now contributing to the growth of national economy. IDLC Finance Ltd as a leading and pioneer NBFI arrested their playion in 1986 and liquid they ar dominating the NBFI sphere of influence as rise up as contributing to the prosper of economic maturement. Their winner in this manufacture has inspired some some some former(a)(a)s to invest their smashing in a gainful way.As major cable of all NBFIs argon providing select facilities to the task a farseeing with conf using upd types of lendword to psyche and organiz ations on that pointfore try is associated with from each one and some(prenominal) product they be flinging. To minimize this attempt every institution has its induce guess forethought policies. A deem of actions atomic number 18 withstandn so that luck associated to their enthronisation cig atomic number 18t be minimized. This treat is empha coats assurance adventure oversight in NBFIs in Bangladesh. In this cipher IDLC Finance Limited has been restitutionn as the s wellnessy organization, its, operate, rules and regulation, in somatic governance is overly interpreted into consideration.Table of Contents_____________________________ Letter of Transmittal Acknowledgement decision maker Summary 1. 0 tone-beginning 1. 1 entry | | | | | 01 | 1. 2 kickoff of the Report | | | | | 02 | 1. 3 Objectives of the Report | | | | | 02 | 1. 4 Methodology | | | | | 03 | 1. 5 Limitations | | | | | 04 | 1. 6 complex body discover of the Report 2. 0 The political entreater | | | | | 04 2. 1 IDLC Finance special(a) | | | | | 06 | 2. 2 Sh atomic number 18holding Structure | | | | | 07-08 | 2. 3 Comp some(prenominal) chronicle | | | | | 09-10 | 2. 4 Guidance principle | | | | | 11-12 | 2. 5 Organogram | | | | | 13-14 | 2. 6 Products & Service | | | | | 14-19 | 2. 7 Divisions & section | | | | | 20 | 2. 8 beat compendium | | | | | 21-23 | 2. 9 Performance of IDLC Finance Ltd | | | | | 24-25 | 2. 9. 1 CAMEL Rating 3. 0 ascribe fortune appoint | | | | | 25 | 3. 1 What is hazard? | | | | 27 | 3. credence jeopardy | | | | 27-28 | 3. 3 cite adventure perplexity Process | | | | 29-38 | 3. 3. 1 character bear on/ assessment | | | | 29-31 | 3. 3. 2 commendation cheers /Sanction | | | | 32 | 3. 3. 3 commendation Documentation | | | | 32 | 3. 3. 4 reference endure disposition | | | | 33 | 3. 3. 5 outlay | | 34 | 3. 3. 6 Monitoring & Control of Individual Credit | | 34-35 | 3. 3. 7 Maintaining the general Credit Portfoli o | | 35 | 3. 3. 8 Classification of Credit | | 36-37 | 3. 3. 9 Managing line Credits/retrieval | | 38 | 4. 0 Findings and psycho summary— Credit endangerment counseling by IDLC Finance Ltd. 4. Procedural be slang Flow of consider Marketing 41-44 4. 2 cistrons Scrutinized during Appraisal Procedure 45-46 4. 3 pitch assigned to each chance Factor 47-48 4. 4 Measures Taken for restoration of dis repute knob 49 4. 5 Functions of excess plus anxiety (surface-to-air missile) 49- 4. 5. 1 Re screenlandy Action Plan by surface-to-air missile | 50-52 | 4. 5. 1. 1 Regular Accounts | | | 50-51 | 4. 5. 1. 2 superfluous Accounts | | | 51-52 | 4. 6 Impact of remiss on advance Performance of NBFI | | | 52 | 4. 6. 1 readinessing Policy of Bangladesh Bank | | | 53 | 4. 6. 2 Provisioning Policy of IDLC Finance Ltd. | | 54 | 4. 7 Trend in Provisioning meretriciousness | | | 54 | 4. 8 Default customer Characteristics Analysis | | | | 55- | 4. 8. 1 Industry Analysis | | | | 57 -59 | 4. 8. 2 comprise of projects to gross sales volume | | | | 60 | 4. 8. 3 As circumstances size of the Borrower | | | | 61 | 4. 8. 4 Debt/Equity ratio | | | | 62 | 4. 8. 5 Interest rate charge | | | | 63 | 4. 8. 6 Sponsors Business dumbfound | | | | 64 | 4. 8. 7 Security balance | | | | 65 | 4. 8. 8 kind with the Client | | | | 66 | 4. 8. 9 Sponsor’s Past Performance 5. 0 passport & Conclusion | | | | 66-68 | 5. 1 good word | | | | 70 | 5. Conclusion | | | | 71 | 1. 1INTRODUCTION The development of pecuniary commercialise has been receiving heightened attention from the indemnity-makers in new years. maven explanation lies in the descentamental shift of development system reflected in the nearly universal shroud of the unavowed sector as an railway locomotive of economic growth. The governments in some(prenominal) un obscure and developing countries, the external pecuniary institutions which practise tremendous influence on the policy- reservatio n apparatus of developing countries and, to a big(p) extent, the intelligentsia have all coupled together as ardent advocates of private entrepreneurship.IDLC Finance Ltd, a leading monetary institution of the country carry with with(predicate) and throughd signifi squeeze outt growth in all beas of line of formering up to 3rd quarter of the year 2009. IDLC began its operation in 1985 as the first leasing conjunction in Bangladesh. In 1995, IDLC was impec female genitaliatdomd as a fiscal Institution by the countrys central trust and during the furthest both decades, the play along has liberal in bi daily round-built-for- both with the countrys growing economy. The connections wide array of products and serve range from retail products, such as home and ar adds, integrated and SME products including have and edge loans, structured finance service ranging from syndications to nifty garner restructuring and pileus mart services. The social club excessivel y streng thereforeed its presence in the countrys growing stock market with submission a subsidiary-IDLC Securities Limited-which is religious domiciliateing full-fledged securities firm service for retail and institutional leaf nodes. . 1. 3 OBJECTIVES OF THE REPORT The main objective of the study is to get a definite idea approximately how CRM plays a vital role in managing the find associated with each and every product and services of IDLC Finance Limited.Furthermore, the orientation is very useful to detect whether the speculative knowledge matches with real life scenario or non. Though the title â€Å"Functions of Credit run a jeopardy management in Non Banking fiscal Institutions (NBFI) in Bangladesh, A study on IDLC Finance Ltd” very lengthy atomic number 18a, the specific objectives ar as follows: 1. To know the necessity of Credit find instruction. 2. To look into around the consentaneous CRM procedure. 3. To know the decision making handle of CRM . 4. To know the functions of particular(prenominal) summation solicitude part of CRM 5.To know slightly the probable modification give the sack be make in the whole CRM process 6. 1. 4 METHODOLOGY OF THE STU Analysis has been made on the floor of the objectives mentioned before in the linguistic context of â€Å"Functions of Credit insecurity management in Non Banking pecuniary Institutions (NBFI) in Bangladesh, A study on IDLC Finance Ltd” The paper forget be written on the founding of in doion collected from primitive and plump forary coil sources. (i) special Data; Discussion with the discordant(prenominal) organizations officials. (ii) For the completion of the register study, secondary selective cultivation has been collected.The main sources of secondary data ar: * Annual Report of IDLC Finance Limited. ? Website of IDLC Finance Limited. * Data from published reports of SEC, DSE * Different Books, Journals, Periodicals, word Papers etc. To make a report various aspects and experiences atomic number 18 needed. precisely I have faced more or less barriers for making a complete and meliorate report. These barriers or limitations, which hinder my work, be as follows: * Difficulty in accessing data of its inner(a) operations. * Non-Availability of some preceding and latest data. * somewhat information was withheld to retain the confidentiality of the organization.I was roled for only if around 3 months of time ; functional(a) like a regular employee hindered the opportunity to put the effort for the study. The time hybridise was non sufficient enough to learn all the activities of the organization decently. Therefore, it was very hard-fought to hold in out the whole analysis. 1. 6 STRUCTURE OF THE REPORT The report has devil main parts: Part one(a): This is grassrootsally introductory part, the objective and mountain range of the study, limitations, and research systemology has been highlighted. Brief Introd uction of IDLC Finance Limited, its product and service, organisational structure, mental process, etc atomic number 18 presented.Part Two: Products of NBFIs for which Credit happen caution has rick a line functional tool, how it performs its overall risk analysis and on the basis of the analysis appointment of the slipway of reducing the risk, hence maintains the core pursuit of the bank line. This part alike contains the conclusion, reference ; supplement of the report. 2. 0 The Comp all 2. 1 ILDC finance express mail IDLC Finance Ltd commenced its journey, in 1985, as the first leasing go with of the country with multinational collaboration and the lead sponsorship of the external Finance connection (IFC) of The World Bank meeting.Technical assistant was impartd by Korean Development Leasing stool (KDLC), the largest leasing comp some(prenominal) of the Re humanity of South Korea. The alone(predicate) institutional partake inholding structure comprising mostly of financial institutions helps the comp each to constantly develop through and through sharing of experience and original approach at the highest policy making level. IDLC offers a versatile array of financial services and solutions to institutional and soulfulness thickenings to meet their various and unique requirements.The product offerings entangle Lease Finance, circumstance Finance, Real Estate Finance, minuscule Term Finance, corporeal Finance, merchant Banking, Term puzzle shunnings, Debentures and Corporate Advisory Services. The company has authorized capital of Taka 1,000,000,000 (10,000,000 shares of Taka ascorbic acid each) and gainful up capital of Taka 250,000,000 (2,500,000 ordinary shares of Taka coke each). IDLC has in addition naturalized dickens totally owned subsidiaries, IDLC Securities Limited and I, Cons Limited to allow invitees with security brokerage solutions and IT solutions, respectively. 2. SHAREHOLDING STRUCTURE IDLC was corporate in the year 1985 as a joint venture public limited company among five overseas and one-third local financial institutions. Now in that location are no contradictory investors the present Shareholding Structure of IDLC Finance Ltd is abandoned holloa: SL. NO. | NAME OF SHAREHOLDERS | % | | Sponsors/ music callors:| | 1 | The urban nerve center Bank Ltd. | 29. 70 | 2 | SadharanBima commode | 7. 62 | 3 | IPDC of Bangladesh Ltd. | 0. 0002 | | Sub-Total | 37. 33 | | usual| | 4 | Institutions : | | | speciemaking(a) Bank Ltd. 7. 50 | | Reliance indemnification Co. Ltd. | 7. 00 | | Eskayef Bangladesh Ltd. | 8. 00 | | BD Lamps | 1. 32 | | Transcraft Ltd. | 4. 01 | | east Bank Limited | 6. 00 | | Phonix Finance | 1. 00 | | PartexBaverage| 0. 86 | | Marina Apparels | 1. 00 | | ICB | 2. 32 | | capital of Bangladesh Stock alternate Ltd. | 0. 95 | | star Bank Ltd. | 0. 5 | | Star Particle Board | 0. 60 | | Bangladesh Finance ; Invest. | 0. 88 | | Other institutions | 6. 92 | | Sub total | 49. 21 | 5 | Individuals : | | | General Public(Individuals) | 13. 45 | | Mr. A. K. M. Shaheed Reza, Director nominate by | | | Mercantile Bank Ltd. | 0. 017 | | Sub total | 13. 47 | | Total Holdings | 100. 00 | 2. 3 COMPANY CHRONICLE whitethorn 23,1985 | incorporation of the Company | February 22,1986 | Commencement of leasing billet |October 1, 1990 | brass section of branch in Chittagong, the main port urban center | March 20,1993 | Listed in capital of Bangladesh Stock Exchange | February 7, 1995 | promiscuous as a Non- Banking Financial Institutions below the Financial Institutions Act, 1993 | November 25, 1996 | Listed on the Chittagong Stock Exchange | May 27, 1997 | Commencement of Home Finance and get around Term Finance Operations | January 22, 1998 | Licensed as a Merchant Banker by the Securities and Exchange Commission | January 15, 1999 | Commencement of Corporate Finance and Merchant Banking Operation | January 29, 2004 | hatchway of G ulshan kickoff |November 22, 2004 | institution of Investment oversight Services â€Å" upper- slip-up letter Invest” | February 7, 2005 | effect of Securitized Zero Coupon Bonds by IDLC Securitization curse 2005 | kinfolk 18, 2005 | Launching of Local green light Investment Centre(LEIC), a centre conventional for the development of SMEs with the contribution of the | | Canadian International Development Agency (CIDA) of the Government of Canada | January 2, 2006 | conjecture of SME focalizationed branch at Bogra| April 6, 2006 | rise of set-back at Uttara|May18, 2006 | spring Merchant Banking branch in the port city if Chittagong | July 1, 2006 | Relocation of Company’s Registered and Corporate Head Office at own exposit at 57, Gulshan Avenue | family line 18, 2006 | Commencement of operation of IDLC Securities Limited, a altogether owned subsidiary of IDLC | March 14, 2007 | Launching of Discretionary Portfolio centering Services â€Å"Managed Cap In vest” | August 5, 2007 | Company create changed to IDLC Finance Limited, from Industrial Development Leasing Company of Bangladesh Limited | December 3, 2007 | IDLC Securities Limited Chittagong offset commenced operation | December 18, 2007 | IDLC Securities Limited DOHS Dhaka Branch in form-only(prenominal)ed. | January 6, 2009 | IDLC Finance Limited and IDLC Securities Limited open Sylhet branches | August 09, 2009 | Opening of IDLC Securities Limited, Gulshan Branch | August 26, 2009 | Opening of Gazipur SME Booth | September 09, 2009 | Opening of Imamgonj SME Booth | December 2009 | Opening of Narayangonj Branch | December 2009 | Opening of Savar Branch | 2. 4 GUIDING PRINCIPLESIDLC is a multi-product financial institution offering an array of diverse financial services and solutions to institutional and several(prenominal) knobs to meet their diverse and unique requirements. pursuance are the guiding principles that shape the organizational practice of IDLC Custome r first: IDLC has grown with its customers, who are believed to be the center of all actions. As the crux of IDLC’s corporate philosophy, customer service gets the highest priority. Innovation: IDLC has endlessly introduced reinvigorated financial products for get together the necessitate of the entrepreneurs in a complex ; intriguing melodic line surround. The concept of innovation is in-built into the workingss culture.Professional Knowledge: IDLC is staffed with qualified professionals and innovational minds in the country. Years of operational experience, large industrial database and suitable workforce have gives them remarkable advantages. Professional ethics: The professional at IDLC maintain the highest degree of financial and transmission line ethics in all proceedings with the leaf nodes. Over the last two decades, IDLC have put in bets efforts to meet the expectations of the invitees and investors. One stop solution: Work at IDLC begins with the id ea generation, and then goes on into the feasibleness study followed by groomment of financing to implement the project.IDLC advises the customers, finance them and even arrange financing for them via contrasting financing modes, to wit: lock financing, verge loan, pair loan, syndication, bridge loan, syndication, ordinary shares, preferred shares and debentures. Vision: effect the best performing and most innovative financial solutions issuer in the country Mission: Create maximum assertable value of all the stakeholders by adhering to the highest respectable modulars For the Company: Relentless pursuit of customer satisfaction through obstetrical delivery of top quality services For the Shareholders: Maximize shareholders’ riches through a sustained reelect on the investment. For the employees: Provide job satisfaction by making IDLC a center of excellence with opportunity of career development.For the monastic hunting lodge: Contribute to the hearty-bein g of the society, in general, by acting as a obligated corporate citizen. Goal: Long full term maximization of Stakeholders’ value Corporate philosophy: Discharge the functions with proper accountability for all actions and results and bind to the highest ethical standards 2. 5 ORGANOGRAM THE vizor OF THE ORGANIZATION IS THE carte OF conductorS, WITH THE focal point military commission AND MANAGING DIRECTOR IN THE FOLLOWING TIERS. THE BOARD CONSISTS OF THE FOLLOWING DIRECTORS: * Chairman from Reliance Insurance Ltd * Five Directors nominated by The urban center Bank Limited * One from SadharanBima Corporation (SBC) * One from Transcom Group One From Mercantile Bank Limited * One nonsymbiotic Director from Monowar Associates ACTIVITIES OF THE BO ARD The Board appoints the Executive deputation (EC), which takes day-to-day decisions on behalf of the company. Every assent object has to be approved by the EC for sanction and spending. EC is also authorized to observe and check into former(a) major day-to-day operational functions including corporate plans, budgets and borrowing activities. The composition of the EC is as follows: a) Four Directors b) Managing Director / Chief Executive Officer and The Company Secretary shall be the Secretary of the Committee ACTIVITIES OF THE MA NAGING DIRECTORThe Managing Director (MD), appointed by Board, manages the overall organizational activities and also plays the role of the figurehead. ACTIVITIES OF THE DEPUTY MANAGING DIRECTOR The DMD establishes the company’s policies and reviews the operational exercise of the company including cheering of large address proposals, major fund procurances, budget and formulation and diversification decisions. Diagram: Organ gram of IDLC Finance Limited 2. 6 PRODUCTS AND go To regard steady and long term growth as well as to sharpen its competitive edge in a changing and challenging abruptly letter environment, IDLC always endeavors to diversify into separate financial services which have long term prospects.In 1997, it expanded its range of services by introducing Housing Finance and Short Term Finance, which have broadened its customer base and have contributed heartyly to IDLC’s growth and kaleability. In early 1999, aft(prenominal) acquiring license of Merchant Banking from Securities and Exchange Commission, IDLC started its operation of on a lower floorwriting, way out management, corporate financing and other investment banking related services. The products and services are as follows 1. LEA talk Assets are leased to nodes on preset lease basis for a stiff term with a buy option at the end. 2. TERM bring The customers are offered loan facilities for a ascertaind term at a negotiated rate. 3. EQUITY FINANCINGIDLC invests money into equity of both publicly traded and non-traded companies for dividends and capital gain. 4. INTER CORPORATE DEPO SIT ( ICD ) This disbursement scheme is offered to invitees under two variations: a) Non- Revolving ICD which consists of hotshot disbursement of capital b) Revolving ICD where multiple disbursements and collections take power 5. WORK ORDER/ bargain for ORDER FINANCING The clients are financed against their work fellowship or purchase order on a revolving basis. 6. FACTORING at a rase place this scheme, IDLC finances receivables of cut of goods or delivery of services on reference book to help the clients realize the maximum portion of their recompense soon after they have made the delivery to the buyer.The requital is collected from the customers and the equilibrize amount is re-reimbursed to the clients. 7. SYNDICATION IDLC helps to raise fund for clients with great financial requirement through syndication and also help them with the backing, execution and presidentship of the syndicated finance. 8. SECURITIZATION IDLC shift financial instruments of organizations in local financial market backed by their plus/ bullion e scapes such as loan, lease etc. 9. BRIDGE FINANCE: This refers to short finance (maturity of not more than 12 months) in anticipation of quick long term financing such as public issue, private organization, syndication, loan, lease, debenture, etc. 10. hoodlum INVESTIDLC maintains a non-discretionary portfolio account for clients where they have coercive power to make investment decisions. the portfolio omnibus admits margin loan to clients and also prepares the list of securities in which they can invest. 11. DEPOSIT SCHEMES IDLC offer contrastive variety of deposit schemes for clients. * accumulative Term Deposit * Annual Profit Term Deposit * Monthly earner Deposit * Double Money Deposit 12. CAR LOAN Term loan are offered to clients for acquiring car, blur sensitive or re delimited, for their personal use and the self-possession is beamred on loan quittance. 13. HOME LOAN IDLC offers loans to purchase apartment to individuals for their personal use 14. REAL ESTATE F INANCEIDLC finances clients to score house, renovate and extend house, for perspective chamber/space for professionals etc. under two different schemes: * Developer’s Finance Scheme oCorporate Finance Scheme 15. PRIVATE PLA cementum IDLC places the shares/debenture with both domestic and overseas investors (institutions or individuals) on private placement basis. 16. UNDERWRITING IDLC makes a univocal and irrevocable allegiance with an issuing company to subscribe to the securities of that company when the actual shareholders or the general public do not subscribe to the securities offered to them. The different types of underwriting offered are: * Initial Public offering (IPO) of common stock, preferred stock, debentures etc. secure Issue oUnderwriting of public securities-loan, lease, debenture 17. matter way Under this activity, IDLC plan, coordinate and ascertain the entire issue activity of clients and direct other agencies for successful marketing of securit ies. 18. monetary A DVISORY SERVICE IDLC help the lively venture or a naked venture by providing various consultatory services such as corporate counseling, project counseling, capital restructuring, financial applied science etc. 19. MERGERS AND ACQUISIT IO IDLC help clients to search for the practiced organization, evaluate the concern base on different types of analysis and select the method of m ;a to make it a profitable deal. 20. TRUSTEESHIP MANAGEME NTWe act as trustee for the debenture holders by evaluate security created by the company and take action to safeguard their interest and visit their rights. Table: Product ; Services offered by IDLC Finance Limited 2. 7 DIVISIONS AND DEPARTMENTS The organization holds divisions which in the first place deal with the products and services and departments which brave out in the ope evaluation activities. The divisions are the * Corporate * SME * Merchant Banking * Personal Investment * work out * Structured Finance * Op erations The departments include * Credit Risk anxiety (CRM) * exchequer * Human Resource * Accounts and Taxation * Administration and PR Operational Risk precaution (ORM)/ internal Control Compliance(ICC) * Special Asset Management(surface-to-air missile) 2. 8 drudgery ANALYSIS The SWOT analysis for IDLC can be depict as follows: Strengths 1. Reputation and brand photograph: IDLC is well-reputed company and has developed a brand image that is recognized by the customers. IDLC is an international joint-venture company and its shareholders have long records of sustainability and reliability in their respective fields. IDLC is one of the esteemed names in financial market of Bangladesh. Since 1985, IDLC has marked its journey through launching of various innovative products and thus meeting the needs of large corporate clients. 2 .Product portfolio: IDLC has diverse product portfolio for customers which made them second to none in Non-Banking Financial Industry. 3. eccentric C ustomer Portfolio: IDLC has a Credit Risk Management department of Multinational standard which enables the company to maintain a quality customer portfolio. 4. Human Resources: The Company has competent management team. The over all work force of the company is considered as aboriginal resources for the organization. IDLC personnel are motivated, competent, energetic and creative. The company provides utmost support in wrong of both technical and moral. 5. Operational cogency: IDLC provides customized solution to their customers to adjust their need.The company processes the loan practises quickly and smoothly. The sanction and disbursement of the loans are hassle-free. 6. Employee Empowerment: At IDLC decision-making is free period and transparent. Every appraiser is given ample opportunity to exercise his/her creativity in accommodating a customer. Approvers are open for any discussion and sanction is for the most part establish upon recommendation of the appraisers. The op en and free flow of communication reassures clarification of any queries in no timeâ€from any level of hierarchy. Reasonable suggestions are not only welcome but are highly appreciated. Effective suggestions by the employees are immediately set for action.This flexibility has helped IDLC a lot in shaping up its operations into a level of force and to be an excellent performer in case of loan recuperation. Weaknesses 1. High Cost of fund: IDLC as any other NBFIs have high appeal of fund in comparison to banks. As NBFIs can take deposit for less than one year from any individuals as banks can do, the deposit base of IDLC is not ironlike enough to reduce the average cost of fund. 2. More Focus on Volume: Although IDLC has department called Credit Risk Management to monitor the asset quality of the company, still the company sometimes for the sake of profit and past family provide loans to customers who at the end check the portfolio quality of IDLC. 3.Too very much Diversifi cation: Too much diversification of product and services offering hamper the focus on the core services of the organization. 4. Less People in indebtedness Marketing: IDLC still employs lesser number of workforces for the aggressive liability marketing in comparison to banks and NBFI like DBH. Opportunities 1. Continuity of rest: Government has continued to liberalize the economy towards more market orientation. This encouraged both local and foreign investors to invest in potential sectors. The privatization plan of government is promising to have positive impact on industrialization. 2. Foreign Investment in likely Sectors: In recent days foreign investment in the various potential sectors has increased phenomenally.This creates a good opportunity for all financial institutions to enter in the booming new sector. 3. Local banks inefficiency: One of the major reasons for thriving of leasing company in Bangladesh is local banks inefficiency of providing project loan. This phenom enon still persists. scourges 1. Threat from banks: In recent times banks are also entering into leasing work which is generally considered as functions of Non-Banking Financial Institutions. 2. Regularity control of government: The healthy framework of Bangladesh is comparatively weak. Lack of effective foreclosure lawfulnesss and manual land recording system creates possibility of forgery and disputes.This whitethorn hinder the loan recovery from the defaulters. 2. 9 PERFORMANCE OF IDLC FINANCE LIMITED 2. 9. 1 CAMEL RATING Rating type | Base | At 31. 12. 08 | Rating | 1. ceiling sufficiency C | Reserve should be 25. 00 crore by the end of 30. 06. 06 | 16. 113 Crore| 1(Strong) | 2. Asset bore A | (Classified loan/lease and other assets)/ delinquent amount*100 | 6089. 04/153384. 93*100=3. 97% | 2(Satisfactory) | 3. Management M | Average of C,A,E ; L ratios | (1+2+1+1)/4=1. 25 | 1(Strong) | 4. Earning Ratio E | (NPAT/TA)*100% (NPAT/TE)*100% | (4063. 72/167085. 65)*100%=2. 43 % (4063. 72/16113. 12)*100%=25. 22% | 1(Strong) | 5. liquidness Ratio L | 1. CRR ; SLR take into account 2.Interbank dependency 3. Profit | -Reserved -Less dependent -Strong | 1(Strong) | CAMEL | Sum of 5 Ratios/5 | (1+2+1+1+1)/5=1. 20 | 1(Strong) | CAMEL rating has improved to 1 comparing to the last year 2(Satisfactory) 3. 0 Credit Risk Management 3. 1 WHAT IS RISK? In general Risk can be define as the â€Å" Probability or threat of a damage, injury, liability, loss, or other negative occurrence, ca utilise by external or internal vulnerabilities, and which whitethorn be neutralised through pre-mediated action. ” But in Finance risk is defined concerning some special factors of market and other externalities which can mint an individual or organization’s decision.In Finance risk is defined as â€Å"Probability that an actual return on an investment allowing be lower than the expected return. ” Financial risk is split up into the pursuance general cate gories: (1) Basis risk: Changes in interest rates get out cause interest-bearing liabilities (deposits) to re-price at a rate higher than that of the interest-bearing assets (loans). (2) cap risk: Losses from unrecovered loans will actuate the financial institutions capital base and whitethorn necessitate floating of a new stock (share) issue. Therefore to reduce this risk Banks, NBFIs, and other organizations take various types of measures so that it can be reduced in a minimal affordable limit. In Banks and NBFIs the core risk is identification risk.As Banks, NBFIs performs there major operations on providing loan, lease (for NBFIs) therefore there is a misadventure of default at time of repayment. So to reduce this default risk so that number of default payment does not increase and to forecast this probability with enchant tools Banks, NBFIs always work on managing their Credit Risk. Several Guideline and standards are lively so that Credit Risk for individual banks and NBFIs can be reduced. 3. 2 conviction rating RISK Credit risk is the possibility that a borrower or counter party will fail to meet agree obligations. Globally, more than 50% of total risk grammatical constituents in banks and FIs are Credit Risk alone. Thus managing ascribe risk for cost-effective management of a FI has gradually become the most crucial task.Credit risk may take the following forms: * In direct lease/term finance: rentals/ lead/and or interest amount may not be re gainful * In issuance of guarantees: applicant may fail to name up fund for settling claim, if any; * In documentary attribute: applicant may fail to retire spell documents and many others * In factoring: the bills receivables against which payments were made, may fail to be paid * In treasury operations: the payment or series of payments due from the counter parties under the respective contracts may not be forthcoming or ceases * In securities occupation businesses: funds/ securities settlemen t may not be effected * In cross-border photo: the availability and free transfer of foreign currency funds may all cease or restrictions may be imposed by the sovereign Credit risk management encompasses identification, measurement, matching mitigations, monitor and control of the deferred payment risk word-paintings to regard hat: * The individuals who take or manage risks clearly understand it * The organization’s Risk exposure is at bottom the limits effected by Board of Risk winning Decisions are in line with the business strategy and objectives set by archetype * The expected payoffs compensate the risks interpreted * Risk fetching decisions are explicit and clear * Sufficient capital as a buffer is available to take risk * Directors with respect to sector, group and country’s prevailing web site * Risk victorious Decisions are in line with the business strategy and objectives set by fig 3. 3 CREDIT RISK MANAGEMENT PROCESS Credit risk management proc ess should cover the entire creed cycle starting from the origination of the attribute in a financial institution’s books to the point the recognition is extinguish from the books. It should provide for sound practices in: 1. Credit processing/ judgement; 2. Credit acclaim/sanction; 3.Credit certificate; 4. Credit tribunal; 5. Disbursement; 6. Monitoring and control of individual ascribe; 7. Monitoring the overall doctrine portfolio (stress testing) 8. Credit mixed bag; and 9. Managing problem commendations/recovery 3. 3. 1 . CREDIT PORCES SING/APPRAISAL : Credit processing is the defend where all require information on assurance is gathered and applications are screened. Credit application forms should be sufficiently flesh out to permit gathering of all information needed for trust sound judgement at the outset. In this connection, NBFIs should have a checklist to project that all required information is, in fact, collected.NBFIs should set out pre-qualifi cation cover version criteria, which would act as a guide for their officers to determine the types of recognize that are acceptable. For instance, the criteria may include rejecting applications from blacklisted customers. These criteria would help institutions avoid processing and screening applications that would be later rejected. Moreover, all references should be for legitimate purposes and adequate processes should be established to view that financial institutions are not employ for fraudulent activities or activities that are prohibited by law or are of such story that if permitted would contravene the supplys of law. Institutions mustiness not expose themselves to reputational risk associated with granting citation to customers of questionable repute and integrity.The next tip to faith screening is commendation approximation where the financial institution assesses the customer’s ability to meet his obligations. Institutions should establish well desi gned quote appraisal criteria to ensure that facilities are disposed(p) only to creditworthy customers who can make repayments from reasonably determinable sources of gold flow on a by the bye basis. Financial institutions usually require substantiative or guarantees in support of a credit in order to decline risk. It must be recognized that verificatory and guarantees are merely instruments of risk mitigation. They are, by no means, substitutes for a customer’s ability to generate sufficient cash flows to honor his contractual repayment obligations.Collateral and guarantees cannot excrete or minimize the need for a comprehensive assessment of the customer’s ability to observe repayment schedule nor should they be allowed to compensate for insufficient information from the customer. Care should be taken that working capital financing is not ground entirely on the existence of indirect or guarantees. such(prenominal) financing must be supported by a proper ana lysis of projected levels of sales and cost of sales, prudential working capital ratio, past experience of working capital financing, and contributions to such capital by the borrower itself. Financial institutions must have a policy for valuing related, taking into account the requirements of the Bangladesh Bank rule of thumbsdealing with the matter. such(prenominal) a policy shall, mong other things, provide for acceptability of various forms of collateral, their periodic valuation, process for ensuring their continuing sanctioned enforceability and realization value. In the case of loan syndication, a participating financial institution should have a policy to ensure that it does not place undue reliance on the credit risk analysis carried out by the lead underwriter. The institution must carry out its own due diligence, including credit risk analysis, and an assessment of the wrong and conditions of the syndication. The appraisal criteria will of necessity vary between corp orate credit applicants and personal credit customers. Corporate credit applicants must provide audited financial statements in support of their applications.As a general rule, the appraisal criteria will focus on: * Amount and purpose of facilities and sources of repayment; * Integrity and reputation of the applicant as well as his legal electrical condenser to assume the credit obligation; * Risk profile of the borrower and the sensitivity of the applicable intentness sector to economic fluctuations; * Performance of the borrower in any credit previously granted by the financial institution, and other institutions, in which case a credit report should be sought from them; * The borrower’s capacitance to repay based on his business plan, if relevant, and projected cash flows using different scenarios; * Cumulative exposure of the borrower to different institutions; * physical inspection of the borrower’s business premises as well as the knack that is the subject of the proposed financing; * Borrower’s business expertise; Adequacy and enforceability of collateral or guarantees, taking into account the existence of any previous charges of other institutions on the collateral; * Current and forecast operating environment of the borrower; * Background information on shareholders, directors and well(p) owners for corporate customers; and * Management capacity of corporate customers. 3. 3. 2 . CREDIT †APPROVAL/ dominance A financial institution must have some written guidelines on the credit boon process and the favorable reception government activity of individuals or committees as well as the basis of those decisions. Approval authorities should be sanctioned by the board of directors. Approval authorities will cover new credit acclaims, reclamations of existing credits, and changes in impairment and conditions of previously approved credits, especially credit restructuring, all of which should be richly documented and reco rded.Prudent credit practice requires that persons charge with the credit approval dominance should not also have the customer relationship responsibility. Approval authorities of individuals should be proportionate to their positions within management ranks as well as their expertise. Depending on the nature and size of credit, it would be prudent to require approval of two officers on a credit application, in accordance with the Board’s policy. The approval process should be based on a system of checks and balances. well-nigh approval authorities will be reserved for the credit committee in view of the size and complexness of the credit transaction. 3. 3. 3 CREDIT DOCUMEN TATIONDocumentation is an essential part of the credit process and is required for each phase of the credit cycle, including credit application, credit analysis, credit approval, credit monitoring, and collateral valuation, and disadvantage recognition, foreclosure of impaired loan and realization of security. The format of credit files must be regularise and files neatly maintained with an appropriate system of cross-indexing to facilitate review and follow-up. Documentation establishes the relationship between the financial institution and the borrower and forms the basis for any legal action in a court of law. Institutions must ensure that contractual agreements with their borrowers are vetted by their legal advisers.Credit applications must be documented heedless of their approval or rejection. For security reasons, financial institutions need to consider safekeeping the copies of full of life documents (i. e. , those of legal value, facility letters, and signed loan agreements) in credit files while retaining the originals in more secure custody. Credit files should also be stored in fire-proof cabinets and should not be removed from the institutions premises. 3. 3. 4 CREDIT ADMINIS TRATION Financial institutions must ensure that their credit portfolio is properly admini stered, that is, loan agreements are duly prepared, renewal notices are sent systematically and credit files are on a regular basis updated.An institution may allocate its credit administration function to a separate department or to designated individuals in credit operations, depending on the size and complexity of its credit portfolio. A financial institution’s credit administration function should, as a minimum, ensure that: * Credit files are neatly organized, cross-indexed, and their remotion from the premises is not permitted; * The borrower has registered the required amends policy in favour of the bank and is on a regular basis paying the premiums; * The borrower is making apropos repayments of lease rents in respect of supercharged leasehold properties; * Credit facilities are disbursed only after all the contractual terms and conditions have been met and all the required documents have been genuine; * Collateral value is regularly monitored; The borrower is mak ing incidentally repayments on interest, principal and any agreed to fees and commissions; * Information provided to management is both accurate and timely; * Funds disbursed under the credit agreement are, in fact, used for the purpose for which they were granted; * â€Å"Back office” operations are properly controlled; * The established policies and procedures as well as relevant laws and regulations are complied with; and On-site inspection visits of the borrower’s business are regularly conducted and assessments documented 3. 3. 5 DISBURSEMENT Once the credit is approved, the customer should be advised of the terms and conditions of the credit by way of a letter of offer. The duplicate of this letter should be duly signed and returned to the institution by the customer.The facility disbursement process should start only upon receipt of this letter and should involve, inter alia, the completion of formalities regarding documentation, the registration of collateral, indemnification cover in the institution’s favor and the vetting of documents by a legal expert. Under no circumstances shall funds be released prior to compliance with pre-disbursement conditions and approval by the relevant authorities in the financial institution. 3. 3. 6 MONITORING ; bear OF INDIVIDUAL CREDITS To safeguard financial institutions against potential losses, problem facilities need to be identify early. A proper credit monitoring system will provide the basis for taking prompt nonindulgent actions when warn signs point to deterioration in the financial health of the borrower.Examples of such warning signs include unauthorized drawings, arrears in capital and interest and deterioration in the borrower’s operating environment. Financial institutions must have a system in place to formally review the status of the credit and the financial health of the borrower at to the lowest degree once a year. More normal reviews (e. g. at least quarterly) shou ld be carried out of large credits, problem credits or when the operating environment of the customer is undergoing significant changes. * Funds advanced are used only for the purpose stated in the customer’s credit application; * Financial condition of a borrower is regularly tracked and management advised in a timely fashion; * Borrowers are complying with contractual covenants; Collateral coverage is regularly assessed and related to the borrower’s financial health; * The institution’s internal risk ratings reflect the current condition of the customer; * Contractual payment delinquencies are identified and emerging problem credits are classified on a timely basis; and * Problem credits are promptly directed to management for sanative actions. * More specifically, the above monitoring will include a review of up-to-date information on the borrower, encompassing: * Opinions from other financial institutions with whom the customer deals; * Findings of site vis its; * Audited financial statements and latest management accounts; * Details of customers business plans; * Financial budgets and cash flow projections; and * both relevant board resolutions for corporate customers. 3. 3. 7 MAINTAINING THE OVERALL CREDIT PORTFOLIOAn important element of sound credit risk management is analyzing what could potentially go wrong with individual credits and the overall credit portfolio if conditions/environment in which borrowers operate change significantly. The results of this analysis should then be factored into the assessment of the adequacy of provisioning and capital of the institution. Such stress analysis can reveal previously unobserved res publicas of potential credit risk exposure that could arise in times of crisis. affirmable scenarios that financial institutions should consider in carrying out stress testing include: * real economic or industry sector downturns; Adverse market-risk events; and * Unfavorable liquidity conditions. Fin ancial institutions should have industry profiles in respect of all industries where they have significant exposures. Such profiles must be reviewed /updated every year. 3. 3. 8 CLASSIFICATION OF CREDIT Credit classification process grades individual credits in terms of the expected degree of recoverability. Financial institutions must have in place the processes and controls to implement the board approved policies, which will, in turn, be in accord with the proposed guideline. This guideline may also be called as Credit Risk Grading (CRG), is a collective is a collective efinition based on the pre- contract scale and reflects the underlying credit-risk for a given exposure. A Credit Risk Grading deploys a number/ first rudiment/ symbol as a primary summary indicator of risks associated with a credit exposure. Credit Risk Grading is the basic module for developing a Credit Risk Management system. Credit risk grading is an important tool for credit risk management as it helps the F inancial Institutions to understand various dimensions of risk intricate in different credit transactions. The compendium of such grading across the borrowers, activities and the lines of business can provide better assessment of the quality of credit portfolio of a FI.The credit risk grading system is vital to take decisions both at the pre-sanction stage as well as post-sanction stage. Two- types of factors play vital role in clay sculpture the CRG, they are, 1. quantifiable factors 2. soft factors The chart is given in the following page; Quantitative Financial Ratios Loan Repayment performance Credit Ratings Expected Default Frequencies Qualitative Management Quality Tenure in Business Operations Industry/ inlet At the pre-sanction stage, credit grading helps the authorise authority to decide whether to lend or not to lend, what should be the lending price, what should be the extent of exposure, what should be the appropriate credit facility, what are the various facilitie s, on the basis of the above factors.At the post-sanction stage, the FI can decide around the depth of the review or renewal, relative frequency of review, periodicity of the grading, and other precautions to be taken. Risk grading should be assigned at the inception of lending, and updated at least annually. 3. 3. 9 MANAGING PROBL EM CREDITS/ convalescence A financial institution’s credit risk policy should clearly set out how problem credits are to be managed. The positioning of this responsibility in the credit department of an institution may depend on the size and complexity of credit operations. It may form part of the credit monitoring section of the credit department or located as an independent unit, called the credit workout unit, within the department.Often it is more prudent and indeed favorite(a) to segregate the workout activity from the area that originated the credit in order to achieve a more detached review of problem credits. The workout unit will follow all aspects of the problem credit, including reformation of the borrower, restructuring of credit, monitoring the value of applicable collateral, exam of legal documents, and dealing with receiver/ coach until the recovery matters are finalized. Financial institutions will put in place systems to ensure that management is unplowed advised on a regular basis on all developments in the recovery process, may that emanate from the credit workout unit or other parts of the credit department.There should be clear evidence on file of the go that have been taken by the financial institution in pursuing its claims against a delinquent customer, including any legal steps initiated to realize on the collateral. Where there is a delay in the liquidation of collateral or other credit recovery processes, the rationale should be properly documented and anticipated actions recorded, taking into account any revised plans submitted by the borrower. The accountability of individuals/committees who sanctioned the credit as well as those who subsequently monitored the credit should be revisited and responsibilities ascribed. Lessons learned from the post mortem should be duly recorded on file. 4. 0 Findings and Analysis — Credit Risk Management by IDLC Finance Ltd To perform the overall CRM process 3 departments are working together at IDLC Finance Ltd.As a leading NBFI in Bangladesh IDLC has always tried to maintain the quality they achieve through 24th year business tenure. These threesome departments are- viewion of Client information and preparing Appraisal Report CRM Department After getting the approval from the respective authority Internal Control Internal and Compliance (ICC) do all the Control &documentation processes Compliance Collection of installment and managing the neglectful rentals as well Special Asset as dealing with the client’s default is Management done by Special Asset Management (SAM) (SAM) * . 4. 1 PROCEDURAL WORK FLOW OF contain MARKETING At the sign stage, IDLC arduous to establish a market and then enlarge the market.The criteria based on which the market for lease financing has been established are as follows: * Diversification of portfolio * Selecting top industrial unit in the respective industry * Financing for Balancing, Modernization, Replacement and Expansion (BMRE) of existing unit * Priority of existing leases * set up up priority based on sector wise performance Primary focus of IDLC till now is in the area of financial leasing of industrial and professional equipment and vehicles for three to five years term with particular emphasis on BMRE of existing units. Instead of lending funds to purchase equipment, IDLC provides the equipment and extends the exclusive right to its use against specified rental payments at periodic intervals.There are two types of client for which the procedural work flow would be different though the basic part would be the same. The different types of clients are * Existing Clients †with whom IDLC has already been working * New Clients †with whom IDLC has no business to that degree The basic procedural work flow is given below: The above procedures are briefly described below: Collect Client & Loan data Compute Credit Risk on the basis of Risk Grade Preparing the appraisal report on the basis of risk Approval by the appropriate authority Documentation Lease/Loan payment collection Creating Provision for default Function of SAM Expiry of Agreement The client applies for required facility through letter. These required facility can vary from different sort of equipments for BMRE to vehicles or expansion projects. The letter generally consists of brief description about the asset to be procured, its price and reason for procurement along with its lease period. * IDLC studies the proposal and sends an offer letter to the client. The offer letter contains acquisition cost, lease period, per month rental and other terms & conditio ns to be applied if the agreement is done. It is to be mention here that the offer letter is a mere offer and by no means an agreement between the two parties.Thus, the terms & conditions may change upon final agreement. However, it seldom changes as that will hamper the goodwill of the company. * The client accepts the offer and submits an accepted offer letter. If the client agrees to the terms & conditions of the offer letter, they sign & seal the offer letter as accepted and send it back to IDLC. * IDLC collects initial information about the client. The initial information are * CIB Undertaking & variety XII (if a limited company) for that client to be sent to Bangladesh Bank for CIB Report of the applying client (as per rule of Bangladesh Bank) * IDLC looks for banks opinion for that client The designated Relationship Manager prepares the appraisal report and evaluated the client’s proposal. The appraisal report consists of * Background analysis of the company * Management and organization * Cost estimate of equipment/vehicle * Technical and marketing analysis, both from big and micro level * Financial analysis of the company. i. e. profitability projection, credit report, year wise performance * The appraisal report seeks approval from the appropriate authority. First of all the Relationship Manager places the report to Credit valuation Committee (CEC), which consists of representative from Credit Risk Management, Operational Risk Management, General Manager and Deputy Managing Director.After CEC consent, the report is sent to sanction authority. * After approval, the documentation process starts. A sanction ledger is prepared and a sanction letter is issued in the client’s name. However, depending on the nature of negotiation, the documentation procedure varies. * The client collects the asset. * Proper policy coverage is done depending upon the asset and procurement of asset from a selected pool of indemnity companie s. * The lease operation starts i. e. a formal agreement is signed by both IDLC and lessee. The lessee starts to pay the rental and the lease continues. * Generally, just after the last rental is paid on a regular basis, the transfer of ownership takes place.Depending upon the negotiated transfer price at the beginning, IDLC transfers the asset’s ownership to the client and lease expires. However, the lease operation can also be expired early through partial termination or foreclosure. For new clients the following few steps are added: * Identification of client †the identification of new client is done through relationship management. The main sources of information about new clients are: * Existing client * Word of Mouth * Internal community * Client call * Walk-in Client * Prepare extensive appraisal report and seek formal bank & FI opinion. The documentation procedure can differ depending upon the modes of acquisition of asset.According to the guideline provided by Bangladesh Bank, IDLC considers the following factors while appraising a client and its finance proposal: 1. Business Risk Factors: * Industry * Size * Maturity * drudgery * Distribution * Vulnerability * Competition * Demand- supply situation * Strategic importance for the group and for the country * Concentration * Market reputation 2. Financial Risk Factors: * Profitability * Liquidity * Debt management * Post Balance cerement events * Projections * Sensitivity Analysis * Peer Group Analysis * Other Bank Lines 3. Management Risk Factors: * Experience/relevant primer coat * Track record of management in see through economic cycles * era * Reputation 4. Structural Risk Factors: * direct working capital requirement have-to doe with the requirement with asset conversion cycle * Purpose of the facilities should be clear and thus mode of disbursement should be kind of structured in a direction to make direct payment to the third party through LC, pay order, Bangladesh Bank cheques etc. 5. Security Risk Factors: * Perishablilty * Enforceability / heavy structure * Forced Sale encourage (calculations of force sale value should be at least guided by Bangladesh Bank guidelines) ————————————————- 4. 3 WEIGHTS ASSIGNED TO individually RISK FACTOR CRITERIA WEIGHT | leverage 20% The ratio of a borrower’s total debt to tangible net worth. runniness 20% The ratio of a borrower’s Current Assets to Current Liabilities. | PROFITABILITY 20% The ratio of a borrower’s operate Profit to Sales. | ACCOUNT CONDUCT 10% Time length of relationship with the client | military control OUTLOOK 10% A critical assessment of the medium term prospects of the borrower, taking into account the industry, market share and economic factors. | CRITERIA WEIGHT | MANAGEMENT 5% The quality of management based on the aggregate number of years that the elder Management Team (top 5 executives) has been in the industry. PERSONAL DEPOSITS 5% The extent to which the bank maintains a personal banking relationship with the key business sponsors/principals. | AGE OF BUSINESS 5% The number of years the borrower has been engaged in the primary line of business. | SIZE OF BUSINESS 5% The size of the borrower’s business measured by the most recent year’s total sales. rather based on audited financial statements. | ————————————————- 4. 4 MEASURES TAKEN FOR RESTORATION OF DEFAULT CLIENTS The Special Asset Management Department of IDLC is creditworthy for mending and improving the repayment pattern of the default clients.Principal Objectives of the SAM department is keeping due situation at possible lowest level so that provision for dues can be minimized so that the negative impact of defaults on the report profit of IDLC can be kept at minimum leve l. For this the department goes through the following procedures: 1. Monitoring the overdue situation of the financed projects 2. Initiating procedures as appropriate for each case Some clients fail to make payments of rentals/ installments to the loaner/ lessor institution. In several cases, the failure is temporary, which is at long last paid within a short time. But in other cases, the client continues to default and the situation worsens since it deteriorates the profitability condition of IDLC, just like any other Financial Institution.So, critical measures are taken on the part of IDLC and these measures are mainly undertaken by Special Asset Management Department. 4. 5 FUNCTIONS OF SPECIAL ASSET MANAGEMENT (SAM) The Special Asset Management Department performs a number of activities to keep the overdue situation of IDLC within minimum level. These are: 1. due Monitoring- Corporate, SME, Syndication 2. Overdue follow Up- Corporate, SME, Syndication(Phone, Visit, letter) 3. SAM Client Follow Up- (Regular, Difficult, obturate, Litigated)- Phone, Visit, Letter, Negotiation 4. Termination, Block & Litigation- Initialization, Follow up, Court attending 5. Appointment of Lawyers for different Legal Procedures 6.Recovery element Appointment & Follow up 7. Rescheduling- Negotiation, Approval, Follow up 8. Routine whole kit and boodle: Receivable Calculation, Closure, Waiver Approval, Adjustments, Reconciliation. 9. Letter Issue- Overdue Clients SAM departmental Targets: 1. Collection of Overdue Rentals 2. Reduction of Non- performing Loans (NPL) 3. Reduction of transmittal ratio 4. Bad/Loss Provision Management- Incremental Provision Control 4. 5. 1. RECOVERY ACTION PLAN BY SAM Special asset management takes various recovery actions to reduce the overdue amount, thus reducing the infection ratio. These actions differ on the basis of investment classification as follows; 4. 5. 1. 1 REGULAR ACCOUNTS (RGACC) Age of overdue: One to Three months * Call immediate ext working day after initiatory default installment to remind about overdue. * Try to get specific commitments from client. act date should not exceed sevener days. * In case of no response from client within seven days, call the client again in order to ascertain reasons for delay and obtain another(prenominal) specific\r\n'

'My Sociology Paper Essay\r'

'High fastness gondola cable railroad political machine get behinds atomic number 18 peerless of the most laid-backlighted broadcasts in television today. Using aerial shots to repay viewing audience a better examine of the scene, the media even interrupts regular programs to bring finicky reports of these fast-moving headlines. The media launches two-fold fleets of helicopters (which main purpose for human build is to take up and update traffic conditions in real-time) to follow these motorcar interests until they end each losing the perpetrator or catching them; sometimes without casualties, and sometimes with multiple damages channeled to the casualties of impoerished bystanders.\r\nThroughout modern history, television diversion and racing has been closely related spawning some different events to the fore such as F-1 and NASCAR racing. Many would owe their popularity to the adrenalin eruption these postgraduate-performance vehicles incite in their vi ewing audience, and wish wellly, this terra firma withal trickles down to eminent fixture car quest fors, which be growing more(prenominal)(prenominal)(prenominal) prominent over the recent years.\r\n more to this, the growing debate on whether the legal philosophy force are to blame for the labels they give to moot drivers incites more pot to add to the fray, as well the intrigue surrounding the weigh of why the driver didn’t poke over in the first place. This and umpteen other calculates redeem made car chases a media staple †something that viewers exit look forward to watching (Settgast 2008).\r\nWith terminal tolls, injuries and intrigue surrounding these specific broadcasts, editorials come out criticizing the patrol for actually giving chase and not letting these vigilantes go on their way. But even bombarded with criticisms, the natural law jade’t give up the chase and continue with the inquisition of these heady drivers (Sowe ll 2007). at that place are many reasons as to why police officers give chase to reckless drivers.\r\nAs a matter of fact, courts have continuously investigated on whether the chases are needful and the use of force by the police to stop them are justified such as the case of â€Å"Scott v. Harris” where a police rammed the car of a 19-year old, rendering him quadriplegic (Settgast 2008). This, and other cases has set the media hogging up more airtime for police chases because of several reasons; one of which is because police car chases, by themselves, already have the tether factor to decoy viewers.\r\nThe media exposition of the spunky make haste car chases, from the resonate of the chase to the dramatic (or non-dramatic) ending, have always had viewers finding themselves hooked on the bury once it turns on. The interpretative archetype is one of the models that explain viewer behavior on media. As Giddens describes, the model views that the â€Å"audience has a powerful role…The interpretative model views audience retort as shaping the media though its engagement or rejection of its fruit” (2000).\r\nThis means that the media is actually beholden to their viewers if completely because of the competition they have with other television media companies, and their desire to increase their rating. With more viewers attuned to them, the higher their ratings would become, therefore they would attract more sponsors and more sources of income. In this regard, the media’s duty is to please their viewers also because it is a necessity for them in consecrate to survive.\r\nBecause of the wide acceptance by the ordinary of high furthering car chases as a from of entertainment, the media has jumped at the chance to repair their ratings by showing these through â€Å"special live reports”. One of the most celebrated and iconic showcase of this is the car chase involving O. J. Simpson in 1994 where â€Å"For two hours, 95 meg Americans ignored the sixth game of the master basketball finals in the East and the sundown in the West to stare at the tube as a clear Ford Bronco drove calmly along one strand and then(prenominal) another of L. A. ‘s web of freeways” (Reuven 1994).\r\nWith this kind of attention the media gets from the public and the media’s response to getting more of this on television, it is patent that audiences now have the freedom to watch what they want (Chinni 2005) . We see that the public’s attention to high recreate car chases actually searchs like a aura of the crime, especially as they are visualised in movies and are used to be redeeming factors no matter how bleak a movie turns out to be (Dean 1993).\r\nAnother side to the story is that high speed car chases sometimes lead madness and some people look forward to there would be some satisfy if solo for reasons of entertainment. Some even find out high speed car chases, themselves to be violence on its own as it capitalizes on predatory behavior. There are multiple evidences that point to the fact that violence is a form of entertainment is multiple and that the media jump on the chance to be in the action increase their ratings. However, media puzzle out on people is a sort out of the deal and cannot be ignored.\r\nExposure to to the highest degree anything the media imparts creates a permissive atmosphere for self-assertive behavior which translates to action over time. Whether the effect are little or the effect are large (in the midst of the ongoing debate of the extent of media influence over its viewers), the bottom line is with the media’s ferocity on aggressive behavior (such as high speed car chases) it is Copernican to note that there is a high likelihood of people imitating the high speed car chases themselves due to drug or alcoholic influences (Felson 1996).\r\nIn this case, not only do the people dictate what the media testament s howcase and highlight in their programs, besides the media also influences how people perceive the dry land and influence their choices and preferences of shows and broadcasts. Also of considerable bring out is the fact that people, devoid of the factors that control their inhibitions, are susceptible to be the perpetuators of high speed car chases themselves as can be read from the study.\r\nSuch factors that contribute to the remotion of inhibitions include the influences of drugs, alcohol, and others. As such, the likelihood that people would be experiencing and trying out for themselves the â€Å" rush” of high speed car chases is high.\r\nWe see that these two factors together (public influence on media and media influence on the public), creates a malevolent cycle of the continuous resplendence of aggressive behavior, such as high speed car chases. This glorification is, first of all, seen in how people are attracted like moths to a flame by the star factor of this broadcast/report. Owing to the high speed car chases’ innate ability to appeal emotions (such experiences can also be pitch in pro-sporting events such as football game and NASCAR racing), people become more and more addicted to watching them, and in the end, gad the media to feature more whenever these incidences take place.\r\nMoreover, high speed chases in Hollywood add to the thrill effect of this dangerous pursuit making them more palatable to their viewers. Secondly, the glorification comes in the form of media sensationalizing these high speed car chases by making it seem more exciting than it actually is like adding the words â€Å"special” and other effectuate to these reports. Also, the media takes these high speed chases to the editorial newsroom to spikelet more of the excitement even if it only lasts for a few days.\r\nIn essence, the thrill effect of high speed car chases and the sensationalism by the media glorifies this dangerous sport. united w ith the emotion-evoking nature of high speed car chases, people are becoming more and more susceptible to its influences (Felson 1996) making the uncivilised cycle of watching, getting involved in, and publicize them unending.\r\n'

'Strategic Planning – Ibm 2009\r'

'CASE abbreviation: IBM IN 2009 Analysis manufacturing: electronic com tacker Services Industry Porter’s 5 Forces 1) Risk of door by cap qualification competitors The risk of entry by potential competitors is relatively broken in (+). This is due(p) to the unexampled-sprung(prenominal)ly entrant competitors that urgency a immense food marketplace capitalization, softw atomic number 18 materials, run and consulting; to hold consumer’s interests. If consumers ar suit satisfactory to choose purchasing their harvests from a voluminous social club that atomic number 18 sufficient in the computer hardw ar, military returns and consulting, some tender(prenominal) technological helpings, they would rather choose a outsize rigid than a shrimpyer firm that do non scram adequate resources. ) The intensity of rivalry among established companies in fightdly an effort The intensity of rivalry among established companies within this pains is relatively gamyschool (-). This is beca character thither atomic number 18 big firms such(prenominal) as Oracle that argon spot in neck with an some other(prenominal) pear-shaped firms such as IBM, trying to get under angiotensin-converting enzymes skin every computer packet parcel there is that armed service them gain a militant mendment. 3) The negotiate place of buyers The bargaining index of buyers is relatively broken in (+).\r\nThis is beca hire in this industry that is planning a particular fruit or service is non composed of galore(postnominal) sm either companies and the buyers be large and few in number. Also, buyers are un adapted to purchase in measuring rod, beca give umpteen of the firms in this industry go game services and consulting, and package product that buyers use. 4) The bargaining strength of suppliers The bargaining exponent of suppliers is relatively high (-). This is because the product that suppliers sell has few substitute s, and the gainfulness of suppliers is not signifi dissolvetly affected by the purchases of companies in this industry.\r\nAlso, switching equals are great as consumers will need to move around from their original product to other supplier. 5) The closeness of Substitutes to an industry’s product The closeness of substitutes to an industry’s product is relatively low (+). There are hardly any substitutes as for many consumers, the importance of the market for technology products and a source of high-tech workers for serving these types of software product when consumers need help. The less(prenominal) technological groundbreaking products are unable to satisfy equivalent node needfully. Forces †Conclusion: This industry is a 3 star industry. What IBM should do is: * IBM should use their competitive advantage to surpass their competitors, and be the monopoly in the industry, instead of being in a competition neck-in neck with other guide competitors * Sin ce the product that suppliers sells has few substitutes, and the bargaining power is extremely high, IBM should win the supplying companies, to reduce their costs some to a great extent, and for suppliers not to turn out the bargaining power that they hit contemporaryly.\r\nLife Cycle: Growth storey * E. G. In this industry, it is development because consumers are proper much and more familiar with the straightaway technology-advanced products when technology in the orbit is forward rapidly. Also, intimately of the large firms unremarkably fetch image over technological fellowship as a barrier to entry which diminishes most of the smaller firms, which lessens the chance of a new entrant. The Value Chain IT Provides low cost- tralatitious IT services or apprize-creating, customizing consultant solutions search on it having the distinctive competencies to develop state-of-the-art software performances across patronage processes and industries * late(a) advances h ave sum upd the power of patronage intelligence software to identify current changes and forecasts many events after acquiring Cognos (software) * some other advancement was that the IT department came up with a new initiative to make it easier for geographicly sprinkle peck to interact and join without the conviction and expense of in-person meetings.\r\nThey were apply practical(prenominal) technology which other people inside and between companies to exchange second messages, chat verbally, share real-time presentations, and virtual meetings Hardware * The systems and technology group put its resources into developing new kinds of mainframes and servers that would appeal to a wider number of customer groups and have kittens world(a) sales. This will give them more power and flexibility for the IT product they buy from IBM * soon IBM sells its mainframes directly to customers with its own sales force to protect lucrative software and service revenue conjurements that ac guild these sales.\r\nBy doing that, IBM’s mainframe installed base had doubled because IBM’s ability to deliver cast up amounts of treat power to customers at a change magnitude cost * Such as self-possessed server would eliminate the need for dear(predicate) IT consulting and service; it would offer companies with a cheap alternative and companies could simply order as many of Cisco’s (one of the acquired software) server racks as needed to ope reckon or dramatize their business Competitive avail\r\nDistinctive get byncies: are firm peculiar(prenominal) strengths that allow a telephoner to fundamental out its products from those offered by rivals and/or procure comfortably discredit costs than its rivals. IBM’s distinctive competencies is acquiring the different servers and software to help the society gain a competitive advantage as the lodge social organisationd many technological advanced products that surpasses other firm s in the industry Intangible Resources: are nonphysical entities that are arrive atd by managers and other employees, such as brand call ups, the write up of the play along, the knowledge that employees have gained through experience, and the reason property of the company, including that protected through patents, copyrights, and trademarks. The intangible asset source here is the brand name and reputation that IBM had built all these years, stellar(a) to one of the top companies in the computer service business. Capabilities: refer to a company’s skills at coordinate its resources and putt them to productive use. * IBM’s skills at coordinating its resources and putting them to computable and productive use by the drive to steering the efforts of all IBM employees on whole the needs of invitees was one of the capabilities that do IBM have this competitive advantage Functional-Level Strategies EFFICIENCY * The simplest measure of efficiency is the quantity of inputs that it takes to produce a given widening; the more efficient a company is, the fewer the inputs swayd to produce a given output and the lower its cost structure will be. * E. G. In 2007, IBM fagged $11. 8 billion to acquire 36 software and 18 service companies in the fields such as security, information management, and Web commerce * QUALITY * The chief operating officer’s strategy was to focal point on high- internet margin products that directly complemented its service and software offerings.\r\nIBM had change off its PC business to Lenovo; its disk drive business to Hitachi, and its pressman business to Ricoh. By doing this, IBM is able to focus on high-profit margin products and ditch the flunk products in the company that are sold off to other companies * INNOVATION * By keeping up with the technology advancements, IBM had announce a new â€Å"virtual world” IT initiative to make it easier for geographical dispersed people to interact and co llaborate without the time and expense of in-person meetings. These virtual worlds are interactive, immersive Web sites based on the use of three-dimensional graphics.\r\nThis allows people to exchange gross messages, chat verbally, share real-time presentations and ideas in private, virtual meeting spaces that exist for good in real time so people can meet on regular, periodic, or impromptu bases. * CUSTOMER reactivity * At this stage, the sales of its new mainframes of IBM were up by 25%; software revenue rose 5%, helped by increasing sales of its popular WebSphere software package that ameliorates the performance of a company’s electronic commerce and business applications twist Competitive Advantage Through Business-Level dodge Competitive Positioning High market Segmentation * What IBM is doing is high market segmentation where they could choose to recognize the differences between customer groups and make a product targeted toward most or all of the different mar ket segments. The customer responsiveness and high and products are being customized to meet the needs of customers in each group. * E. G. IBM had shifted its products to higher profit-margin services and automating traditional business processes such as procurement, finance and human resources which was leading to increasing amount of long-term service contracts between large firms. Differentiators * Clearly, IBM is a differentiator. This is due to how IBM was able to acquire different software from companies which then was able to offer clients high profit-margin software application to satisfy their needs. IBM was able to pock their products from the leading competitors and satisfy consumers that the other competitors clearly could not Business-Level strategy and the Industry Environment main strategies that companies can adopt to deal with free fall: * Leadership strategy The speed of pass up and the intensity of competition in the declining industry are moderate. Through war-ridden learnednesss, IBM was able to acquire much software to constrain high profit-margin products to satisfy customer needs and to also provide clients with their go around service and consulting. The open standards get that Gerstner’s approach was that as IBM’s consultants went from client to client assessing their needs; they were able to provide elaborate feedback to IBM’s other divisions about whether their products were adequately meeting clients’ needs.\r\nGerstner’s strong focus on being close to clients had the additional advantage of spurring innovation throughout the organization. Chaining * They establish networks of linked merchandising outlets that are interconnected by IT and function as one large company. The enormous buying power these companies possess through their range of nationwide stores allows them to negotiate large expenditure reductions with suppliers that promote their competitive advantage * With IBM, the c ompany is able to link with other software companies and IT back up servers that could connect as one large company.\r\nBy doing so, it allows IBM to create a competitive advantage in regards to price reduction from suppliers. Strategy & deoxyadenosine monophosphate; Technology Technological Paradigm Shifts * This occurs when new technologies come along that revolutionize the structure of the industry, dramatically alter the nature of competition, and require companies to adopt new strategies to survive. * E. G. When technology has been advancing, IBM innovated a new product that made geographical dispersed people to interact and collaborate without the time and expense of in-person meetings called the new â€Å"virtual world” from the IT department.\r\nAlso, IBM had put its resources to good use by developing new kinds of mainframes and servers that would appeal to a wider number of customers groups and expand global sales. Proprietary standard * Establishing a proprietary s tandard as the industry standard may require the company to win a format war against a competing and incompatible standard. Strategies for doing this include producing complementary products, leveraging killer applications, using aggressive set and marketing, licensing the technology, and cooperating with competitors * E. G.\r\nIBM could produce complementary products, supplement killer software that they have been acquiring and perfecting it, also using aggressive pricing and marketing to let gain new consumers. Strategy in the Global foodstuff By serving as a global market, a company can potentially utilize its production facilities more intensively, which leads to higher productivity, lower costs and great profitability. Global sales also increase the size of the enterprise, so its bargaining power with suppliers increase, which may allow it to bargain polish up the cost of recognise inputs and ascent more profitability. IBM made the investment to establish huge, cheap se rvice delivery centers for its global clients by improving the software incumbent to modify the management of networks and data centers, and develop IT to improve telecommunications, especially Internet services. From India, IBM runs a all in all range of IT services for its global customers. In Bangalore, IBM has a command center that monitors the transaction of the database server networks of more than 16,000 clients. Through this, IBM was laboured to eliminate 20,000 jobs in Europe and the US, and move these jobs to India as the cost of labour in India is significantly low.\r\n unified Level Strategy Vertical Integration * This could enable IBM to achieve a competitive advantage by helping build barriers to entry, facilitating investments in narrow assets, protecting product quality, and helping to improve scheduling between adjacent stages in the value chain * unrivaled of the disadvantages is that it increases bureaucratic costs if IBM’s supplier becomes trifling or inefficient, and it reduces flexibility when technology is ever-changing fast or demand is ambivalent Strategy Outsourcing By strategic outsourcing of value creation activities, it may allow a company to lower its costs, better differentiate its products, and make better use of just now resources, while also enabling it to reply rapidly to changing market conditions * One of the disadvantages is that if IBM outsources of the essence(p) value creation activities or becomes too dependent on the key suppliers of those activities * IBM has invested in India to take advantage of its growing importance as a market for technology products and a source of high-technology workers.\r\nIBM made the investment to establish huge, low-cost service delivery centers for its global clients, improve the software necessary to automate the management of networks and data centers, and develop IT to improve telecommunications. IBM runs a totally range of IT services for its global customers, inc luding software delivery services such as upgrading and maintaining client software and managing and protecting database centers in India. Also in Bangalore, IBM has a command center that monitors the operation of the database server networks.\r\nThe largest of IBM’s three global IT service centers are in India, Brazil, and China. IBM’s scope was to expand traditional outsourcing operations and attract more and more global clients to compensate for bring down profit margins so it can heretofore increase profits from this group. Related and orthogonal Diversification Acquisitions * Acquisitions are used to lock just integration or variegation when a company lacks the distinctive competencies necessary to compete in the industry.\r\nAcquisitions are oftentimes perceived as being less risky than internal new ventures because they connote less commercial uncertainty. * IBM has done many acquisitions, such as Lotus, CenterPoint Energy, Phillippines PSBank, PTT Chemic al state-supported Company of Thailand, Skynet in Lithuania, Cognos etc. which helps IBM increase its expertise in specialized IT services to strengthen its competitive advantage Corporate Performance, Governance, and Business ethical motive ROIC 1) Participate in growing market 2) Take market share from competitors ) Consolidate industry through horizontal integration 4) International expansion, vertical integration or diversification * E. G. For IBM, pursing strategies to maximise profitability and profit growth helps a company to better satisfy the demands that some(prenominal) stakeholder groups place on it, not the other way around. Also, by maximizing returns to stockholders, IBM could boost its profitability and profit growth rate to be consistent in satisfying the claims of several other key stakeholder groups.\r\nEthics * Despite the argument that maximizing long profitability and profit growth is the best way to satisfy the claims of several key stakeholder groups, a c ompany must do so within the limits set by the law and in a port consistent with societal expectations * It is incumbent on managers at IBM to make sure that the company is in compliance with these laws when pursuing strategies.\r\nUnfortunately, there is plenty of evidence that managers can be tempted to cross the line between the legal and illegal in their pursuit of greater profitability and profit growth. IBM could hold many various seminars on the topic of morality and to try and implement ethical protocols when relations with an issue that arises. Implementing Strategy in Companies that Compete in a Single Industry Strategic Reward Systems * Organizations strive to dominate employees’ behavior by linking reward systems to their control systems.\r\nBased on a IBM’s strategy (cost leadership or differentiation), strategic manager must decide which behaviors to reward. Selecting, ontogenesis an Action/Implementation Plan * single out of acquisitions * Many acq uisitions infract to increase the profitability of the acquiring company and may endpoint in losses. Acquisition may break away to raise the performance of the acquiring companies suggesting that acquisitions usually destroy rather than create value. As IBM is acquiring many types of software to enhance its competitive advantage, but it may break out to raise the performance of the acquiring companies for quaternary reasons * Companies frequently experience management problems when they tone-beginning to integrate a different company’s organizational structure and socialization into their own * Companies often overestimate the potential economic benefits from an acquisition * Acquisitions tend to be so expensive that they do not increase future profitability * Companies are often negligent in cover version their acquisition targets and fail to recognize important problems with their business models * IBM should be firm on their management organization structure to co me to an end any management problems with IBM makes an acquisition * IBM should encumbrance out all the pros and cons to distinguish whether the acquisition is beneficial to the company or not.\r\nAlso, when doing the acquisition, IBM should compute of all the important problems that align with their current business model * Outsourcing * IBM will fail when their profitability is now substantially lower than the average profitability of its competitors; it has lost the ability to attract and contribute resources, so its profit margins and invested capitals are shrinking rapidly. IBM will have to acquire many new software to keep their competitive advantage * IBM should corporate quality control in those countries that they have outsourced their services and consulting to continue to attract and generate resources and have profit margins still high\r\n'