Thursday, March 26, 2020
THE TREATY OF WAITANGI Essay, Research Paper Her Majesty Victoria Queen of the United Kingdom of Great Britain and Ireland sing with Her Royal Favour the Native Chiefs and Tribes of New Zealand and dying to protect their merely Rights and Property and to procure to them the enjoyment of Peace and Good Order has deemed it necessary in effect of the great figure of Her Majesty # 8217 ; s Subjects who have already settled in New Zealand and the rapid extension of Emigration both from Europe and Australia which is still in advancement to represent and name a functionary decently authorised to handle with the Natives of New Zealand for the acknowledgment of Her Majesty # 8217 ; s autonomous authorization over the whole or any portion of those islands # 8211 ; Her Majesty therefore being wishful to set up a settled signifier of Civil Government with a position to debar the immorality effects which must ensue from the absence of the necessary Laws and Institutions likewise to the native population and to Her topics has been gracefu lly pleased to authorise and to empower me William Hobson a Captain in Her Majesty # 8217 ; s Royal Navy Consul and I, Lieutenant Governor of such parts of New Zealand as may be or hereafter shall be ceded to Her Majesty to ask for the confederated and independent Chiefs of New Zealand to agree in the undermentioned Articles and Conditions. We will write a custom essay sample on THE TREATY OF WAITANGI Essay Research Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Article the first The Chiefs of the Confederation of the United Tribes of New Zealand and the separate and independent Chiefs who have non become members of the Confederation cede to Her Majesty the Queen of England perfectly and without reserve all the rights and powers of Sovereignty which the said Confederation of Individual Chiefs severally exercising or possess, or may be supposed to exert or to possess over their several Territories as the exclusive crowned head thereof. Article the 2nd Her Majesty the Queen of England confirms and warrants to the Chiefs and Tribes of New Zealand and to the several households and persons thereof the full sole and undisturbed ownership of their Lands and Estates Forests Fisheries and other belongingss which they may jointly or separately possess so long as it is their wish and desire to retain the same in their ownership ; but the Chiefs of the United Tribes and the single Chiefs output to Her Majesty the sole right of Preemption over such lands as the owners thereof may be disposed to estrange at such monetary values as may be agreed upon between the several Owners and individuals appointed by Her Majesty to handle with them in that behalf. Article the 3rd In consideration thereof Her Majesty the Queen of England extends to the Natives of New Zealand Her royal protection and imparts to them all the Rights and Privileges of British Subjects. [ signed ] W. Hobson Lieutenant Governor Now therefore We the Chiefs of the Confederation of the United Tribes of New Zealand being assembled in Congress at Victoria in Waitangi and We the Separate and Independent Chiefs of New Zealand claiming authorization over the Tribes and Territories which are specified after our several names, holding been made to the full to understand the Provisions of the foregoing Treaty, accept and enter into the same in the full spirit and significance thereof in informant of which we have attached our signatures or Markss at the topographic points and the day of the months severally specified Done at Waitangi this Sixth twenty-four hours of February in the twelvemonth of our Godhead one time thousand eight 100s and 40. The Chiefs of the Confederation [ This English pact text was signed at Waikato Heads in March or April 1840 and at Manukau harbour on 26 April. A sum of 39 heads signed. The text became the official version. ]
Friday, March 6, 2020
Keynes Ideas After the First World War essays What Impact did the First World War have on the development of Keynes's Ideas? John Maynard Keynes (1883-1946) is one of the most prominent figures in the study of the field of Economics. However I do not specifically regard Keynes as strictly an Economist, this is because if you look at his early life, he was greatly influenced by G.E. Moore. From reading Keynes, My Early Beliefs, he found a new religion, in the sense of what the real purpose of life is for him. From Moore's influence he found out that the most vital importance to him was the States of Mind and the human relationships that co-exists from it. Keynes graduated from Cambridge with a Mathematics degree and was part of the "Bloomsbury group". This was a very elite and secret group and they use to talk about their experiences through the influence of Moore. Hence his morality and Ethics is very central to Keynes's Economics. The war had a large impact on Keynes's ideas. He resigned from the Treasury because he did not agree with the Allies the method and the amount Germany should pay. So he wrote a book called the Economic Consequences of the Peace (1919) and from that you can see the impact the War had on his Ideas. He believed that Germany should be given help in rebuilding the Economy, and he also believed that it was not morally right for the German people to suffer. His ideas also developed to believe that Europe works, as a family hence if you destroy one you will destroy most of them. Therefore Keynes gives alternative solutions for the Reparations, and also believes in a free trade union. Keynes's is concerned for the redevelopment of the Economies of Europe and advocates a large loan from the Americans. Keynes's ideas further developed in reference to Essays in Persuasion concerning War Debts and the United States (Cancellation 1921) to which he believed that all War Debts should be cancelled. This is because it would be devastating to the European Community ...
Wednesday, February 19, 2020
Your pick of this week's news Week8 - Essay Example The search for the debris is made more difficult by the strong and unpredictable currents in the Indian in addition to the isolated and vast area to be searched. The report was not only factual but also incisive because it gave background of the first objects found in the satellite that were not confirmed. The difficulty of finding the debris was also described giving the readers an idea why it takes sometime to verify the objects. Third party expert opinion was also given to make the news balance and credible. The efforts made and the assets deployed to confirm the find were also adequately described. In general, I find the article incisive because it did not only report the recent find but Ã¢â¬Å"contextualizedÃ¢â¬ the report by providing the reader a background to fully appreciate the development. Other parties were also interviewed to make the news more balanced such as aviation experts in the person of Peter Marosszeky and and Alan Kin-Tak Lau. Denyer, Simon , and Jia Lynn Yang. "China issues new satellite image, Australia spots small unidentified debris."Washington Post. N.p., n.d. Web. 23 Mar. 2014.
Tuesday, February 4, 2020
Manipulative advertising - Essay Example the objection on the core purpose of marketing gets validated because the latter strategy that would make buying environment optimal for purchase without logical cost-value analysis would render customers as worse in real economic terms. The very practice of manipulative advertising by various companies aims at optimizing the profits while entirely ignoring the consumer morale and satisfaction. This essay will elaborate the manipulative advertising and the way manipulative advertising impacts the working of laissez-faire economy. It will also discuss whether manipulative advertising should be resisted or not. Then it will discuss the different advertising regulations and institutions in charge to implement those regulations. This would also include a critical analysis of the effectiveness and implementation capacity by institutions for implementing the advertising related regulations. LAISSEZ FAIRE (FREEDOM OF MARKET) AND MANIPULATIVE ADVERTISING: Economists have been the major criti cs of manipulative advertising on grounds of its ability to restrict consumers to make their choices freely. Free choice of consumers in their buying process is something at the heart of capitalism. Laissez- Faire economy works on the basis of free flow of information to consumers in making optimal choices in their purchase decisions. In laissez-faire economy it is believed that more the consumers are informed about the product more rational and optimal choices they will make in their buying decisions. This will automatically clear unwanted goods from market and the expensive goods will become cheaper because of the firmÃ¢â¬â¢s goal to attract the consumers. Advertising, in its modest sense, is believed to transmit the useful information about product features to the consumers in market and... This "Manipulative advertising" essay outlines the consumer's behavior and society overall. Economists have been the major critics of manipulative advertising on grounds of its ability to restrict consumers to make their choices freely. Free choice of consumers in their buying process is something at the heart of capitalism. Laissez- Faire economy works on the basis of free flow of information to consumers in making optimal choices in their purchase decisions. In laissez-faire economy it is believed that more the consumers are informed about the product more rational and optimal choices they will make in their buying decisions. This will automatically clear unwanted goods from market and the expensive goods will become cheaper because of the firmÃ¢â¬â¢s goal to attract the consumers. Advertising is believed to transmit the useful information about product features to the consumers in market and thus it comes to the heart of market economy, ideal of flow of information to consumers to make optimal choices. But unfortunately advertising ideal of providing the information to the consumers for their optimal purchase decision is viewed skeptically by many of the critiques from different fields of study. Advertisement promises features in the product that do not really exist. Ad campaigns are designed in a way that lure the customers unduly and hamper their ability of applying persuasion knowledge i.e. the ability to understand and smell when they are being persuaded by advertisement and make their decisions accordingly using their rational cost-value analysis.
Monday, January 27, 2020
Study on the Market Response to Stock Splits The market response to stock splits is investigated with the dataset from an emerging country Ã¢â¬â India for period 2006 March 2009. study reports significantly positive abnormal returns on day of split execution and next trading day. regression analysis suggests that the reaction can be attributed to liquidity hypothesis. The postsplit period experiences abnormally high negative which wipes out any positive gain during split execution. This seems mostly explained by presplit price increase and size of firms suggesting that the have experienced a in period are ones suffer worst returns. In theory, stocksplits are cosmetic corporate events as they simply increase the number of outstanding shares and decrease the price of each outstanding share. Hence, there should be no significant effect on the value of the firm. A stock split does not change the revenue or assets of a company. So, stocksplit should cause no change in price other than the adjustment warranted by the split factor. There should also be no change in distribution of stock returns around exdates of stock splits. Exdate refers to the date on or after which a security is traded without a previously declared dividend or distribution. However, empirical evidence suggests that the market generally reacts favorably to stock splits. In different developed markets, for instance, UK and US, significant positive abnormal returns and increase in variance and volumes of trade have been documented around stock split announcements as well as exdates. The contradiction between theory, which expects no change in firm va lue consequent to stock splits, and the reality, with scores of evidence of significant market reaction, triggers the present study. In February 1981, the Indian ministry of finance issued a guideline that denomination of equity shares be fixed uniformly at Rs.10, and that the denomination of the then existing shares other than Rs.10 be converted into denomination of Rs.10. In another guideline in January 1983, the Indian government clarified that denomination of shares of Rs.100 need not be changed to denomination of Rs.10, i.e. shares of all companies were required to be in denominations of Rs.10 or Rs.100 only. Even so, several companies converted the denomination of shares of Rs.100 into that of Rs.10 on the grounds that it generated better liquidity, as also a higher value for the shares. However, in March 1999, the Securities and Exchange Board of India (SEBI) decided, with the objective of broadening the investors base, to dispense away with the requirement of standard denomination of Rs.100 or Rs.10 and gave freedom to companies to issue shares of any denomination but not below Re.1. Companies that had issued shares of the face value of Rs.10 or Rs.100 were also permitted to avail of this facility by consolidation or by splitting their existing shares. To reap benefits of splitting, a number of existing listed companies having denomination of Rs.100 or Rs.10 have split their stocks into different denominations, e.g., Re.1, Rs.2 or Rs.5, etc. These recent changes in the Indias regulatory environment offer a unique opportunity to gain further insight into the stock splits with reference to their effects on variables like stock prices, return, volatility, and trading volume. With the increased integration of international markets in general and a wave of liberalization and globalization, the importance of understanding these stock events has increased dramatically. Further, there a re different capital gains tax laws in India. Under these circumstances, splits may have different effects contrary to what has been reported in various literatures. Furthermore, compared to the worlds major stock exchanges, there are proportionally more small firms listed on Indian exchanges; consequently, many firms are thinly traded. Hence, these differences between Global and Indian markets necessitate studying split events in India. The results of the present study shows significantly positive cumulative abnormal returns on and the next trading day after split execution, following which there is a major decline in share prices which wipes out most of the gain of the execution period. The signaling hypothesis and the trading range hypothesis do not seem to provide any explanation for the significant CAR around execution date, while the liquidity hypothesis seems to contribute significantly towards the positive CAR occurring on and immediately after the execution. The small firm hypothesis also 6 shows weak explanatory power for the change in wealth. The post execution negative reaction is mostly explained by run up of stock prices preceding the execution, implying that the stock split has induced a revision of stocks fundamentals, probably bringing prices to a more fundamental level. 7 2. . Literature review There have been numerous researches on the effect of stock splits on different parameters of capital markets. Fama etal (1969) has been the pioneering study to examine the share price performance of splitting firms. Although the economic literature has not yet found a definitive explanation for either the abnormal returns observed around the announcement and execution dates, or the reasons why managers decide to split, different explanations, not necessarily mutually exclusive have been proposed. The more prominent hypotheses are the signaling hypothesis, the trading range hypothesis, the liquidity hypothesis and the neglected firm hypothesis. One such research paper advocates considering the three different market efficiencies (weak form, semistrong form, and strong form) that the investor can make an above normal return by relying on public information impounded in a stock split announcement. This study agrees that according to the semistrong form market efficiency, the stock split announcement do impact the company stock price. The study done by Desai, Jain (1997) elaborates more on longrun performance of common stock following stock splits announcement and hence concludes that the capital market doesnt fully react to the information conveyed in the stock split announcement. Considering the ignored studies of small firms, the paper examined firm portfolio of different sizes and more diversity in terms of industries. Taking a large sample of stock information for a period of 1976 Ã¢â¬â 91, the research paper concluded that the market does not incorporate the full effect of the stock split announcement in the month of announcement. It is evident that managers believe that stock split results in optimal trading price of a stock that attract small investors and hence enhances liquidity. Joshipura (2008) studied the price and liquidity effects associated with stock split surrounding its announcement and execution 8 dates in Indian stock exchanges. The results suggested that though there were some positive abnormal return associated surrounding announcement and execution dates of the stock split, but it reverses in just a few days after the event dates, and ultimately generates significant negative abnormal return in slightly longer postexecution window. It also found that there was a significant improvement seen in liquidity surrounding announcement and execution dates of stock split. Desai and Nimalendran (1998) examined the effect of the change in trading activity after stock splits on volatility and spread. The results of the study show that the increase in volatility cannot be attributed solely to microstructure biases arising from the bidask bounce and price discreteness. Even after correcting for these two biases, the study found a significant increase in volatility after the split. The study also found an increase in the number of trades after the split, and the increase in the biasadjus ted volatility was positively related to this increase in the number of trades. The study decomposed volatility into transient and permanent components and found that both components of volatility increase after the split. Attributing transient volatility to noise traders and permanent volatility to informed traders, the study suggested that trading by both types of traders increases after the split. Ikenberry, etal (1996) discusses that splits are used to move stock prices into a trading range to increase liquidity and that they are used by management as a signal of positive private information. The study found evidence that is consistent with the view that splits are typically used to realign stock prices to a normal trading range. The study also confirmed that splits convey favorable information, thereby validating the signaling hypothesis. It was found that market reaction was greater for small firms, low booktomarket firms and firms splitting to low share prices. The study also found an inverse relationship between the presplit run up and postsplit excess returns, suggesting that the results were not attributable to momentum. 9 There are various studies devoted to studying the effect of stock splits in specific geographies. Asquith, etal (1989) examined stock splits in the US market and found that stock splits do convey earnings information. The results indicated that firms split their shares after a significant increase in earnings. Before the stock split announcement, the market expects these earnings increases to be temporary. The split announcement leads investors to increase their expectations that the past earnings increases are permanent. The study also found that the markets reaction to the split announcement cannot be attributed to expectations of either future earnings increases or nearterm cash dividend increases. Elfakhani, etal (2003) examined the market behavior surrounding stock split announcements in the Canadian market for the 1977Ã¢â¬â1993 period and the effect of the 2year before compared to the 2year after the announcement. Using the event study methodology, the findings indicated tha t positive abnormal returns exist on both the announcement days (0,1) and the 11day period surrounding stock split announcements. The results also showed that following the split event, bidask spreads decrease, while both trading volume and the number of transactions increase thus suggesting that split events enhance liquidity. Further, the study observed that earnings grow in the 2year period following split events, thus implying that split events signal future performance of the firm. Wulff (2002) investigated market reaction to stock splits using a set of German firms and in line with the US findings, found significant positive abnormal returns around both the announcement and the execution day of German stock splits. The study also observed an increase in return variance and in liquidity after the exday. The study found that abnormal returns around the announcement day are not related to changes in liquidity, but (negatively) to firm size, thus lending support to the neglected f irm hypothesis. Despite noting a substantial increase in liquidity after the split, the study did not find support for the liquidity 10 hypothesis. Menendez, etal (2003) analyzed the motivations and valuation effects of stock splits in the Spanish market. The findings of the study suggest that splitting firms present a presplit stock price above the normal trading range, and that, after the split, the number of transactions and the average transaction size increase significantly. Moreover, positive abnormal returns are observed around the announcement dates and around the exdate. For the latter, however, these positive wealth effects are outweighed by the negative abnormal returns observed closely afterwards. The study found that liquidity, or the optimal trading range hypotheses prevailed over other hypotheses as an explanation for stock splits in the Spanish market. The findings of the study suggest the main reason behind a stock split and for the positive market reaction around the stock split announcements is a higher share price than the normal trading range. The reduction of this higher price seems to attract s mall investors and thus significant increases in the number of transactions and reductions in the trading volume per transaction after the split are observed, without there being any significant variation in the volume of shares traded. This adjustment of the firms stock price to a normal trading range is valued positively by investors. Most of these studies are concentrated mainly around market reaction at the announcement date. In a study on the UK equity market, specifically concentrating on the exsplit date, Staikouras etal, (2009) has documented positive abnormal returns on and around the exsplit date which are partially predictable using the publicly available information prior to the exsplit date. The study also observed a persistent increase in the post split volatility of the stocks in the UK equity market with this increase being better explained by the daily trading volume. This is in contrast to the US findings where the daily number of trades was found to better capture the increase in volatility. 11 In this study, the market response to stock splits is investigated with the dataset from an emerging country Ã¢â¬â India, which is distanced from the west in terms of geographical location, economic development, institutional and legal framework. Not much is available in the Indian context with a focus on the exsplit date, so far, except for the commendable work by Mishra (2007), which documents negative effect on price and return of stocks following splits. The study also reports a positive effect on volatility and trading volume following the split events. The present paper tries to provide a few additional insights on the issue and therefore, differs from Mishras (2007) study in the following ways. Firstly, an attempt is made to explain the significant cumulative abnormal returns around the split execution dates with the help of regression analysis. Secondly, the independent variables cover issues like small firm hypothesis, price run up, deviation of price from market average, which are unexplored in his paper. Thirdly, the data set of the present study covers the period post Mishras study, i.e., from 2006 to March 2009. HHHHyyyyppppooootttthhhheeeesssseeees s ffffoooorrrrmmmmuuuullllaaaattttiiiioooon n TTTThhhhe e ssssiiiiggggnnnnaaaalllliiiinnnng g hhhhyyyyppppooootttthhhheeeessssiiiis s The signaling hypothesis proposes that, in a scenario of asymmetric information between managers and investors, managers may use stock splits to signal positive information to the market about the firms future expectations. The presence of positive abnormal returns around the stock split announcement that is found in many empirical studies provides evidence for the signaling hypothesis. 12 Trading range hypothesis According to the optimal trading range hypothesis, stock splits are used as tools to realign the share price to a desired price range so that it is more affordable for small investors to buy round lots of shares. If the presplit share price is at a high level, then a stock split is justified for improving the marketability of the shares. Empirical findings suggesting an increase in the daily number of transactions after the split do not reject this optimal range hypothesis. TTTThhhhe e lllliiiiqqqquuuuiiiiddddiiiitttty y hhhhyyyyppppooootttthhhheeeessssiiiis s The managements motivation to bring the share price to an optimal trading range arises from the desire to improve liquidity. According to literature there is an observed increase in trading volume during the postsplit period, and hence provide support for the liquidity hypothesis of stock splits. Staikouras etal, (2009) in their study of the UK equity market document a strong and positive relationship between the measures of trading activity and the returns volatility over the preand postsplit horizons. SSSSmmmmaaaalllll l ffffiiiirrrrm m hhhhyyyyppppooootttthhhheeeessssiiiis s Small firm or neglected firm hypothesis suggests that since the smaller firms have fewer announcements published in the financial press, the split announcement is expected to create greater market interest than it would be in case of larger firms. So, small firms may have an incentive to adopt the stock splits to grab more attention. Based on the discussion above, we can lay down the objectives of this study. The study proposes to, using data from the Indian stock market, examine the presence of positive abnormal returns over the stock split 13 period and, if found to be true, to study whether the returns can be explained using any of the hypotheses mentioned above. We formulate the following hypotheses: HHHH1111: There is no significant abnormal return around the exsplit date. HHHH2222: If H1 rejected, returns are identical for all firms in sample. HHHH3333: and H2 the abnormal observed around event window [1,+1] can be attributed to publicly available information based on one or more of theoretical hypotheses above. HHHH4444: If H3 is true, a similar explanation can be made using this data for different time horizons around the exdate. An event study framework is employed to test the above hypotheses. An OLS regression model is used for determining the factors for the occurrence of abnormal returns across the event window. 14 3333. . DDDDaaaatttta a aaaannnnd d MMMMeeeetttthhhhooooddddoooollllooooggggy y 3333.1 DDDDaaaatttta a CCCCoooolllllllleeeeccccttttiiiioooon n The basic sample is comprised of all Bombay Stock Exchange (BSE) equity stocks that have split between January 2006 and March 2009. The National Stock Exchange website was used to download list of stocks that have undergone a stock split in this period. There were a total of 151 stock splits during the period. All financial data series for these stocks like daily closing adjusted prices, market capitalization, trading volume and market indices were downloaded from Thomson DataStream. The following criteria have been applied to include a company in the sample. i) The stock price data is available for 260 days prior to the exsplit date. ii) Data for 260 days are available for the postsplit period. iii) Where a stock has split more than once in the sample period, the first exsplit date was considered. iv) Other required financial information is available. After filtering on the basis of the above criteria, the number of firms on which the analysis could be carried out was 99. 3333.2 DDDDaaaatttta a AAAAnnnnaaaallllyyyyssssiiiis s Table 1A Table 1B below show summary statistics of the sample stocks used for this study. There is an even distribution of stock splits in each year of the sample period indicating normal stock split activity in the Indian equity market 15 for the given period. However, analysis on a monthly basis reveals that August, September and October are the most active months for stock splits, possibly indicating a preference by firms to execute the split around that time. More than 40 percent of the firms in the sample have the stock split in this period. 5:1 split is the most common split ratio (57 firms) in the sample followed by 10:1 and 2:1 split ratios. For the 4:1, 6:1 and 5:2 split ratios, there is only one stock in the sample period. Therefore, summary statistics for these stocks were not calculated as any observations made would be a result of a very firm specific performance and not a general conclusion. The average price for the 2:1, 5:1 and 10:1 split sizes are Rs. 229.99, Rs. 192.30 and Rs. 215.27 respectively. No conclusive relation between the stock price and the split ratio can be inferred from the maximum and minimum values shown below. The average marketcap for the 2:1, 5:1 and 10:1 split sizes are Rs. 13068.56 million, Rs. 57129.56 million and Rs. 87126 million respectively. The average market capitalization is observed to increase with higher split ratio possibly indicating that the largecap stocks are the ones that usually opt for the higher split ratio. 16 TTTTaaaabbbblllle e 1111AAAA: : SSSSttttoooocccck k SSSSpppplllliiiit t ssssaaaammmmpppplllle e ddddiiiissssttttrrrriiiibbbbuuuuttttiiiioooon n TTTTaaaabbbblllle e 1111BBBB: : SSSSttttoooocccck k SSSSpppplllliiiit t ssssuuuummmmmmmmaaaarrrry y ssssttttaaaattttiiiissssttttiiiiccccs s 17 3333.3 MMMMeeeetttthhhhooooddddoooollllooooggggy y EEEEvvvveeeennnnt t bbbbaaaasssseeeed d ssssttttuuuuddddy y Event studies start with hypothesis about how a particular event affects the value of a firm. The hypothesis that the value of the company has changed will be translated in the stock showing an abnormal return. Coupled with the notion that the information is readily impounded into prices, the concept of abnormal returns (or performance) is the central key of event study methods. How does a particular event affect the value of a company? We must be careful because at any time we observe a mixture of market wide factors and a bunch of other firm events. To correctly measure the impact of a particular event we need to control for those unrelated factors. The selection of the benchmark to use or the model to measure normal returns is therefore central to conduct an event study. The empirical model can be stated as follows: when an event occurs, market participants revise their beliefs causing a shift in the firms return generati ng process. For a given security, in non event periods, Rt = xt B + et while in event periods, Rt = xtB + FG + et Rt is the return of the security in period t, xt is a vector of independent variables (for example the return of the market portfolio) in period t, B is a vector of parameters, such as the security beta, F is a row vector of firm characteristics influencing the impact of the event on the return process. G is a vector of parameters measuring the influence of F on the impact of 18 the event and et is a mean zero disturbance term possibly differing in event and non event periods. Hypotheses usually centre on the parameters that measure the influence of the event (G) and most of the times F is set to unity. The null hypothesis is that such an event has no impact on the return generating process. Event study methods are the econometric techniques used to estimate and draw inferences about the impact of an event in a particular period or over several periods. The most common approach involves three steps: (1) Compute the parameters in the estimation period; (2) Compute the forecast errors (and obtain variance/covariance information) for a period or over an event window; aggregate across firms and infer about the average effect; (3) Regress crosssectional abnormal returns on relevant features of the stock supposed to influence the impact of the event. In this study, the event is the split execution date, defined as day 0. The event splits the sample into two sets Ã¢â¬â the presplit period and the postsplit period. The presplit period considered in this study is a period of 260 days prior to the event date (260 days to 1 day) and the postsplit period is the period of 260 days after the event date (+1 day to +260 days). This leads to a total period of 521 trading days data for each stock (including the split date) centered around the event date for that stock. In essence, all stocks are aligned according to their event timeline. The estimation window is the 220 day period from 260 to 41 trading days. A similar event based alignment of data was performed for the other financial data namely market capitalization, market index and trading volume. In this study, the benchmark index chosen for running the regression for the market model is the BSE 100 index. The index price was also aligned according to the split date for each stock t o obtain comparable market 19 return at and around the event date. The Brown and Warner (1985) methodology is applied to test for the significance of abnormal returns. Regressions to estimate the parameters of the market model The standard single index asset pricing model is used to estimate the market parameters ( Ã ² and c). The market model used to estimate the parameters is given as below: Ri = Ã ²Rm + c where Ri Ã¢â¬â expected return of stock i Rm Ã¢â¬â market return c constant of regression
Saturday, January 18, 2020
CinderellaÃ¢â¬â¢s case conceptualized using a Bowenian transgenerational model According to Bowen, one of the pioneers of family therapy, family can be understood as an emotional unit, which can be best analyzed through a multigenerational framework. CinderellaÃ¢â¬â¢s story, which was told by many professional storytellers, including brothers Grimm (19 century) and Charles Perrault (17 century), as many other famous fairytales lacks many important details and charactersÃ¢â¬â¢ descriptions that a therapist would need for administering family treatment involving transgenerational model. If we would speculate knowing some information about CinderellaÃ¢â¬â¢s family members, the transgenerational model would work beautifully. A chronic anxiety of Cinderella, her unstable, submissive behavior, could be explained by anxiety transmitted over several generations. Goldenbergs bring our attention to a few important emotional patterns of an individual:Ã¢â¬ the selection of a spouse with similar differentiation level and the family projection process that results in lower level of self-differentiationÃ¢â¬ (p. 89, 2008). Bowen would even build a prognosis for CinderellaÃ¢â¬â¢s children to have a reduced level of self-differentiation and being increasingly vulnerable to anxiety (Goldenberg & Goldenberg, 2008). Bowen emphasized that the multigenerational transmission programs not only the levels of self Ã¢â¬â differentiation, but also programs familyÃ¢â¬â¢s roles and interactions. CinderellaÃ¢â¬â¢s marital problems could be understood very well through the lens of her family behaviours (The Bowen Center, n. d. ). My only major concern about application of transgenerational model in CinderellaÃ¢â¬â¢s case would be the early death of CinderellaÃ¢â¬â¢s parents ( her genogram is hard to build) and her latter life with the wicket, very directive stepmother, who evidently influenced CinderellaÃ¢â¬â¢s fragile and indecisive mind structure. CinderellaÃ¢â¬â¢s ability and inability to build attachments to her family members, which were not all Ã¢â¬Å"angelsÃ¢â¬ , should be also considered when providing her with a therapy. Once again, her attachment to her loving father, her godfairy, her stepmother and stepsisters, could be easily incorporated into transgenerational model. CinderellaÃ¢â¬â¢s case conceptualized through BowenÃ¢â¬â¢s concepts of triangulation. According to Goldenberg and Goldenberg (2008), the BowenÃ¢â¬â¢s concept of triangulation would allow understanding better CinderellaÃ¢â¬â¢s marital problems. Probably, a few first years of CinderellaÃ¢â¬â¢s marriage were happy, because it was a big relieve for her to escape the stepmother cruelty. However, even her first marital years could have some initial problems. For example, the prince, who was brought up in a Ã¢â¬Å"normalÃ¢â¬ family, could not understand or could not believe CinderellaÃ¢â¬â¢s stories she told about her family. He would smile when she would share her violent memories with him. The prince mistrust and his ironic smile could initiate some negative feelings and despair in Cinderella. In this case, the stepmotherÃ¢â¬â¢s figure would be present in Cinderella-prince conflict through CinderellaÃ¢â¬â¢s stories. It is particularly interesting that the third person does not need necessarily be present to create a conflict in triangulation (The Bowen Center, n. d. ). When children were born from a person (or two persons) with low self-differentiation, many other triangles and possible shifts and tensions could occur. CinderellaÃ¢â¬â¢s case and the object-relations model Goldenberg and Goldenberg (2008) provide a deep insight into CinderellaÃ¢â¬â¢s story based on the object-relation model, which is connected to the early Freudian concept of mother-child bonds. Even though the CinderellaÃ¢â¬â¢s relationship with her mother was very short before her mother past away, it appeared to be a foundation of many CinderellaÃ¢â¬â¢s later issues, such as her idealization of some women characters (godmother; later, some older women-friends), a few conflicts between her ego and id, suffering from deprivation of early attachments, developing insecurity and low self-esteem, and others. All these issues that the object-relations model would discover, could be projected to CinderellaÃ¢â¬â¢s later marital problems. A person who survived a trauma of loosing her both parents and the hardship of living with evil stepmother and stepsisters could have a lot of troubled thoughts and experiences that could be projected into her relationship with her spouse and children. I believe that the object-relations model (psychodynamic in its core) could provide the best insight when dealing with CinderellaÃ¢â¬â¢s marital problems.
Friday, January 10, 2020
Our research is conducted with the purpose of investigating and studying the current retail mix. We chose The Coffee Bean & Tea Leaf Ã ® as the retail company which operates in Malaysia. This report is important for The Coffee Bean & Tea Leaf Ã ® as it helps them to identify their problems and make further improvements to enable them to compete with their competitors, for example, Starbucks.As we know, The Coffee Bean has a lot of franchises, there were about 750 stores in 22 countries, for example in California, Arizona, Nevada, Singapore, Malaysia, Sabah, Taiwan, UAE, Korea, Brunei, Indonesia, Australia, Shanghai, Israel and Brunei and continues to expand both domestically and internationally. As it is hard for us to conduct a research on this topic in so many countries, therefore we only focus on The Coffee Bean operating in Malaysia. We conducted our research by using searching for detail information through the internet.Besides that, we went to one of the franchises lo cated in Penang to see how the business operates, how the staffs serve their customer and to know more information on the store layout and design. The result of our research shows us that The Coffee Bean & Tea Leaf Ã ® has encountered many problems. As conclusion, we did include several recommendations to The Coffee Bean and to help them to improve in order to earn more profit and their sales can increase. RETAIL ENVIRONMENTRetailing is the final activities and steps needed to place merchandise made elsewhere into the hand of the consumer or to provide services to the consumer. Nowadays, retail sector is increasingly being viewed as an important in the economy and to the society. According to Malaysia Retail Report 2010, it predicts that total retail sales will grow from an estimated US$35bn in 2009 to almost US$58bn by 2014. A low unemployment rate, which rise the disposable incomes and a strong tourism industry are key factors behind the forecast growth. In 2009, Malaysia's n ominal GDP was US$201. 6bn. Over the forecast period through to 2014, it predicted that average annual GDP will growth 4. 3%. With the population expected to increase by 9. 8%, GDP per capita is predicted to rise from US$7,103 in 2009 to US$9,654 in 2014. Furthermore, it also forecast that consumer spending per capita will increase from US$1,961 in 2009 to US$3,197 in 2014. Moreover, Malaysia is classified as an upper-middle income country. According to the Department of Statistics Malaysia (DSM), the average consumer spending was MYR2,285 per month in urban areas and MYR1,301 per month in rural areas.With the urban population predicted to account for almost 76% of the total by 2015, according to UN data, this is likely to have a positive effect on retail sales. Thirteen years ago, The Coffee Bean and Tea Leaf brought the art of coffee drinking and the world of gourmet grinds to the land of kopitiams and has since successfully integrated it into the fabric of the urban MalaysianÃ¢â ¬â¢s lifestyle. Thirteen years later, there are over 54 stores in the east and west Malaysia. We can see that between this time period, Coffee Bean had rapidly growth.Besides, Malaysian today is also familiar with Coffee Bean compare to a few years ago. In the future, it is expected that Coffee Bean will continue to growth in Malaysia due to the changing lifestyle of Malaysian and other factors. INTRODUCTION In year 1963, Herbert B. Hyman started The Coffee Bean ;amp; Tea Leaf Ã ®. With a dedication to excellence and the quality of coffees and teas in the world, HerbertÃ¢â¬â¢s efforts made him the founding father of gourmet coffee in California. Now The Coffee Bean ;amp; Tea Leaf Ã ® has grown into one of the largest privately-owned, family-run coffee and tea companies in the world.Besides, the endurance and popularity of The Bean attributed to the high standards that were established from the beginning. The Coffee Bean ;amp; Tea Leaf Ã ® has discovered the formula for a succe ssful coffee and tea company, which is start from trend-setting drinks such as the World Famous Ice BlendedÃ ®, to the employees who become a part of the communities they work in. Today, they offer over 22 varieties of coffees and 20 kinds of teas. Moreover, Coffee Bean is also a Clicks and Mortar retailer. They sell their product at both online and via physical stores.The Coffee Bean ;amp; Tea Leaf Ã ® mission is to create a spirit within the company that inspires their team members to provide their customers with a total quality experience that is: Quality of Product, Service and Environment Furthermore, they also believe in the fundamental truths that guide them through their daily lives at The Coffee Bean ;amp; Tea Leaf Ã ®, which is: 1. Friendly with each other and their customers. 2. Respect for each otherÃ¢â¬â¢s values, opinion and individual diversity. 3. Ownership, it is because they are proudly entrusted with the responsibility. . Teamwork, it is because they achieve success by working together. 5. Honesty, it is because they are truthful to each other and to themselves. In short, they realize that their customers deserve Ã¢â¬Ësimply the bestÃ¢â¬â¢. THREATS AND OPPORTUNITITIES Opportunities 1) Changing lifestyle Although there is an economic downturn in year 2009, however, the specialty of coffee industry has grown every year. According to one of the economy observer, when times are good the coffeehouse industry is great, and when times are bad the coffeehouse industry is still great.This means that the coffee industry is strong at all times. What makes the coffee industry become a strong industry at all time? One of the main factors is changing in the MalaysianÃ¢â¬â¢s lifestyle. Nowadays, many of them are hard-working, fast-paced Malaysian considers a stop at their local coffeehouse as their necessary part of the day. This is because coffeehouses provide calm, inviting environment for people to socialize, relax or catch up on work. Coffee house for such The Coffee Bean ;amp; Tea Leaf is one of the places where they can meet with their friends.Besides, with the relaxing atmosphere and environment it makes the coffeehouse become a suitable place for the college student to do their assignment or discussing their homework. During weekend nights, coffeehouse is the place where full with the young customers. Furthermore, instead of going to a bar and paying for an alcoholic drink or a restaurant where a meal usually comes with a hefty price tag, the older adults now choose to spent their time in the coffeehouse. With a cup of coffee and snack, they can meet with their friends and relax. 2) Market potentialAs what we had discussed just now, MalaysianÃ¢â¬â¢s lifestyle is changing and therefore, coffee industry for such The Coffee Bean has the potential to growth in Malaysia. According to the research, there are only 54 outlets of The Coffee Bean ;amp; Tea Leaf in the whole Malaysia included East Malaysia. In the future, it is expected that the number of outlet will continue to increase. In short it means there is a market potential for The Coffee Bean. Threats 1) Competition Global coffee market is one of the very competitive sectors. The main competitor of The Coffee Bean ;amp; Tea Leaf in Malaysia is Starbuck.This is because both Starbuck and The Coffee Bean ;amp; Tea Leaf are addressing the same target group. Both The Coffee bean and Starbucks have developed a strong and successful business by adhering to their core values that is to offer customers the best coffees and teas, to hire friendly staff from local community and to provide comfortable places to them to relax. Therefore, The Coffee Bean ;amp; Tea Leaf has to develop the best strategies to compete with Starbuck. In here, the most important thing to compete with Starbucks is to improve its services.For example, The Coffee Bean ;amp; Tea Leaf had offering Ã¢â¬Å"Party PackÃ¢â¬ which customer can order when throwing a house or office part y. They provide services of giving their customer the possibility to bring The Coffee Bean ;amp; Tea Leaf lifestyle back to their homes. Moreover, the company also provides online services. They have their home page with virtual stores which is being defined as collection of all pages of information. The customers can buy their product through online and knowing the latest promotion through the homepage.Besides, coffee manufacturer, such as, Nestle USA, Inc, distribute premium coffee products nationally in supermarkets and convenience stores. Most of these products may be substitutes for this companyÃ¢â¬â¢s coffees and their coffee drinks. Therefore, if the company wants to retain its status as the worldÃ¢â¬â¢s leading specialty coffee retailer, it must be aware of their competitors. 2) Host country risk management Risk management issues such as government policies, regulation, macroeconomic variations and monetary uncertainties are important to The Coffee Bean ;amp; Tea Leaf on its international franchising.Therefore, it is a necessary for The Coffee Bean ;amp; Tea Leaf to understand the host county government policies concerning to the transfer and repatriation of dividends, fees and royalties. However, this company conducts a very little host government policy evaluation due to attributed to a lack of resources and reactive approach to market expansion. 3) Enthusiasm of health consciousness Nowadays, people attitude are changing and they care more to health. More and more people are taking responsibility for their health rather than passively accepting medical decisions.With this, the consumers are cutting down on caffeine. It is because they believe that drinking coffee will harm their health. This is because that they feel that the pros of consuming coffee are less than the cons. As a result, this may decline the demand for coffee from The Coffee Bean ;amp; Tea Leaf. COMPANYÃ¢â¬â¢S RETAIL MIX Retail mix is the combination of merchandise, assortment, price, promotion, customer service and store layout that best serves the segments targeted by the retailer. Price The price is what the customer willing to pay in exchange for the benefits of the product and services.From the research that we had conducted on several Coffee Bean franchises, it is clearly shown that the price of most of the products offered is around RM10 and above. For example, an egg club sandwich and a plate of Chinese chicken salad cost Rm15. 50 each. It may be expensive for certain group of people such as the youths who are the zero income earners. With this we can see that the price charged by The Coffee Bean is slightly higher than those coffee shops such as Old Town Coffee but if we use Coffee Bean pricing and compare it to their biggest competitor in the coffee industry, for such, Starbuck.Starbucks will have a little advantage on the pricing as with high price, they will earn higher profits in just a short period. Based on the research, we can see that Cof fee Bean focused on non price decisions, but on other factors such as qualities and facilities. Thus in here it is clear that Coffee Bean is using the above Ã¢â¬â market pricing policy as they do provide the wifi facilities and also the good environment for people to do their business or assignments. It also had show that they target the market most on the youths. The muffins and cookies which cost only less than Rm5 are affordable for the youths but the cakes nd also the pasta set are not affordable for them as they are not working and thus no income for them. They only depend on the pocket money given by their parents. Thus The Coffee Bean should offer their products with lower prices so that it is affordable for the youths to purchase it. Coffee Bean can earn back their profits in the long term. The adults with middle and high income can afford to spend on the products offer by Coffee Bean. For example, although the price for those cups and gifts available in The Coffee Bean a re quite expensive, but there were actually people who purchase them especially those with high income.Merchandise Merchandise is being defined as goods, ware, stocks, articles or item to be sold. In another way of defining merchandise is the availability of assortment of products available in the retail shop. For The Coffee Bean ;amp; Tea Leaf or also known as The Coffee Bean in short, offer many types of products such as coffees, teas, cakes, party-packs, pies, cookies, muffins, sandwiches, salads and even hot pasta. They even offer different types of drink menus for their customers. The Coffee Bean does customise to meet the wants and demands of their customers.This is because different consumers have different types of preferences. It can be shown clearly when The Coffee Bean customises their coffees into light and subtle, rich and smooth, dark and distinctive and flavoured. For example the light and subtle coffee is especially for the customers who prefer mild and delicate flav our. Whereas for teas, it is being categorise into black and oolong tea, green tea and flavoured green and herbal and fruit infusion. For such, green, black and oolong teas all have their own signature flavours and aromas, and each will have its own unique set of blends that complements and expands their essence.A mellow Ceylon tea, for example, blended with a delicate peach flavour works the magic sparks of fruitiness with a light floral finish. And to those who dream of having spectrum of aromas and flavours, a cup of oolong tea will be their choice. Furthermore, the cakes being offered can be customised into cheesecake special, signature classic, for kids and special occasions. They also offer the drink menus to suit the taste and preferences of their valuable customers. For such, they offer coffee, espresso, brewed tea, tea latte, non-coffee, coffee ice blended drinks, coffee-free ice blended drinks and many more.Thus with the way of customising their products to suit the tastes and preferences of different customers, it will then help to attract more customers to The Coffee Bean and with customers, retail trade can be done. They also do provide merchandise line depth whereby they allow their customers to choose the size for their drinks whether they want small, regular or large size. In conclusion, customer satisfaction can be met when the retail organisation, The Coffee Bean is being influenced by the customersÃ¢â¬â¢ needs and wants.Besides from all these, The Coffee Bean also do offer some gift packs, for example The Holiday Tea Trio which includes three mini square tins each containing five tea bags of whole leaf teas. They are nicely wrapped with ribbon on top of it which makes it attractive for people to purchase them. Although Coffee Bean offer a variety of products for their customer but it may bring some disadvantage such as the taste and aroma of coffees and teas may not be that fragrant anymore as they do not focus on only a particular type of coffee and tea.This may make the good quality of the products offer by them to be turned into bad quality. Therefore, to prevent this from happening, Coffee Bean should only picked up some of their famous products to specialise in and to continually improve on it. Advertising and promotions The Coffee Bean become famous and as a media darling, their brand have been place and promote in hits shows like Entourage and The Hills, to coverage leading publications like Forbes Magazine and the Times. Coffee Bean had advertised its brand not only through the media or magazine but some other ways such as donations, promotions and others.The Coffee Bean have come out with a numbers of examples they been using to reflect the concept of social responsibility and also to promote their brand through donations. It can be shown by the following example; The Coffee Bean made a donation, 50% from their sales item to be donated to serves children with autism, learning disabilities, hyperactivity or a ttention deficit disorder, mental retardation, and emotional challenges. Through an ongoing commitment, The Coffee Bean ;amp; Tea LeafÃ ® holds The Help Group's annual Deck the Walls holiday fundraising program and proudly features the children's artwork.Their most recent activity is the project of Caring Cup initiatives which planted and nurtured domestically in communities served by the company, as well as internationally in communities which the product originate. The framework of caring cup initiatives is rooted in need; where need from preventing the environment to improving education. Through these, The Coffee Bean will definitely well known in public and as we can see nowadays more and more people will come to purchase from the shops whereby there do a lot of charity work and these charity programs will be part of The Coffee Bean social responsibilities.Beside donation there are a few promotions being used to promote their brand. At times, The Coffee Bean ;amp; Teas also giv e free drinks today to celebrate the launch of the cafeÃ¢â¬â¢s holiday drink line. For example, from 4p. m. to 8 p. m. (11/12) customers can get a free 12 oz holiday drink. Choices include: Peppermint Latte or Ice Blended drink; Pumpkin latte or Ice Blended drink. Besides that, they also promote their famous drinks by posting pictures on the wall and putting up banners outside of their franchises.People who own The Coffee Bean Card may have some benefits too and it acts as a way of promoting and thus can attract their customers to purchase more. By having the card the consumers may enjoy the convenience of debit purchase, the more the people top up the card the more benefit they will get, such as 10% more value and redeemable of other item by having at least 5 point. They do have the holiday promotion. When it is near by the holiday season, they had been preparing some merchandise to go, such holiday cocoas gift set and others.This had helping in promote the brand by his consumer to others. They also have their online advertisement. They are not only having their own web site but they already create their pages in Facebook, Twitter and also Youtube which are the famous connection web on current time. They also post some short video on the web to promote and attract to the customer. With all the relevant aspect, connection and advertisement use by the company, Coffee Bean has successfully passed their information to their customer.Through the promotions of the products by hanging up banners and pictures on the wall sometimes may not contain full information such as the pricing and the nutrition of the particular product. They may only contain attractive pictures on it. In order to solve it, the management of Coffee Bean should publish their nutrition label and the pricing on the banners. With these, customers can get the information of the products they choose and can decide whether to purchase it or not. Besides that, we also noticed that Coffee Bean do not give out brochures as a mean of promotion. This may be a disadvantage for them.If brochures are provided to the passer-by, they may tend to go in to the Coffee Bean to enjoy the products offered by them. As a conclusion, the Coffee Bean should also provides brochures and distribute it to the people so that they can have more information on the offers and promotions offered. Customer service and Selling Customer service is the provision of service to customers before, during and after a purchase. For The Coffee Bean and Tea Leaf, they provide a series of customer service to their customers. Such as, their entire customer can apply for a member card or so called The Coffee Bean Card.Basically, The Coffee Bean Card is a loyalty card introduced to reward regular customers with loyalty points called Ã¢â¬Å"BEANSÃ¢â¬ which can be subsequently redeemed against purchases at The Coffee Bean ;amp; Tea Leaf outlets (CBTL). With perception, Coffee Bean is a big believer in teamwork (just lik e Starbucks) as they feel that success is achieved by working together. After our research on several franchises of The Coffee Bean, we noticed that their staffs are efficient, friendly and helpful enough. They maintain amicable relationships between customers and each other.This can be shown when customers ordered their drinks and food at the counter, they served their customers with smiles and when we asked them certain questions for our assignment purpose, they will try their best to answer us. The employees have respect for each other's values, opinions and individual personalities and are honest and truthful to themselves and each other. Due to this strategy, they can serve their customers in a better way. In addition, Coffee Bean also provided online service which customer can view their website that having the latest news and more information towards their company.In order to let their customer to contact them or get more information towards them, Coffee Bean also provide the ir headquarter address, email, telephone and even fax number on their website. They even have their website for their customers to comment on their services and products provided. Selling is being defined as trying to make sales by persuading someone to buy one's product or service. Coffee Bean also did selling. They try to sell out their product as much as their competitors do. Therefore, promotion will exist. Besides that, Coffee Bean tends to sell their product through their good and friendly customer service.Due to the customer service provided by them are good, customers tend to come back to them when they think of having a cup of coffee and enjoying the peaceful environment there. Although most of the Coffee Bean franchises are well organised with their efficient workers, there is a possibility that they do made mistakes to especially in delivering the drinks to the customers or when they prepare the drinks. This can be shown when our group when to one of The Coffee Bean to do our research while having our drinks there; we noticed that they made the drinks for us not according to the size we ordered.For such, we ordered a regular size black forest ice blended and a large size of the caramel ice blended, but during the preparations of the drinks, the staffs made mistakes, everything goes the other way round. These mistakes can be avoided by sending those staffs to more training programs so that they can improve and be more efficient and the operations in The Coffee Bean will be more effective and productive. Location Location is an area that retailing may undergo significant changes in the decade to come.Besides that, retailers have been classified according to their location within a metropolitan area, be it the central business district, a regional shopping centre or neighbourhood shopping centre, or freestanding unit. In order to have the businesses caring out well or to improve the businesses, location and target market can be considered as important factors. For example, if the location that retailers choose is too far away from the town or is it hardly or impossible to find a parking lot to park their vehicles, most of the consumers will choose not to go there.Locations that retailers mostly choose to run their businesses and to earn a profit from there are such as metropolitan area (e. g. : town area), central business district (e. g. : heart of the state) and so on. In Malaysia, most of the retailers would like to operate their businesses at metropolitan and central business district. The reason they choose these places is because the locations tend to attract more consumers to their shops as there were also many hypermarkets and supercenters around.As for this assignment, we carried out a research on The Coffee Bean ;amp; Tea Leaf, The locations that Coffee Bean may choose to run their franchise businesses are basically the two popular locations. Besides that, The Coffee Bean ;amp; Tea Leaf currently has over 750 stores in 22 countries. In addition, in Malaysia currently have over 54 stores. 31 franchises in Klang Valley, 6 in Penang, 1 at Ipoh, 2 in Pahang, 3 in Johor Bharu, 2 in Malacca, 6 in Sabah and 3 in Sarawak. Every Coffee Bean in Malaysia tends to gives people a relaxing and enjoyable environment.The location that Coffee BeanÃ¢â¬â¢s retailer pick mostly at those places which can attract more people. The Coffee Bean ;amp; Tea Leaf tends to attract those tourists and people who used to hang out with friends or to those who were carrying out their direct selling with others. For such, after a tired shopping day, most of those shoppers will tend to find a relaxing place for a rest. They can enjoy the coffee and the sweet aroma of teas that are provided by the Coffee Bean. Next is the customers may also enjoy the beautiful scenery around these franchises, for such the beaches.Through these, more of the tourists will pay a visit and spend their time there. Besides that, location such as shopping complexes is also a hot spot for shoppers and tourists to spend their time there either the day or night. Customers can sit and relax themselves; they can also view the shoppers shopping around and can feel the friendliness of the people. Locations that Coffee Bean chooses are also convenient to the entire consumer. Most of the franchises operate at the shopping complex; this is because there are a lot parking places provided for their customers.This will let those consumers to pay more visits to their shops which can provide them with the drinks provided and the good customer service provided. Target Market is the specific group of customers that a company aims to capture. They have been identified as people with needs or wants that can be met with the products or services from the company. The Coffee Bean ;amp; Tea Leaf is targeting the youth, who are teens and working adults in their twenties. This has become a weakness for the firm. The Coffee Bean and Tea Leaf aligns itself wit h other major brands targeting the youth market.This may lead it to lose some potential market. For example, DOMEÃ¢â¬â¢s positioning is Ã¢â¬Å"expensive and exclusiveÃ¢â¬ as its target market is basically the professionals, managers, executives and businessmen. But The Coffee Bean ;amp; Tea LeafÃ¢â¬â¢s target market is the youth and who didnÃ¢â¬â¢t have strong consumption power. The target market for The Coffee Bean ;amp; Tea Leaf is sensitive to the price issue. The Coffee Bean positioned them well in the target market by a competitive pricing strategy. This pricing strategy likes a threat for The Coffee Bean ;amp; Tea Leaf.Thus the market share and profit for The Coffee Bean ;amp; Tea Leaf are limited. They also target the adults with stable income. The problem on the location is that there were only 54 outlets in Malaysia. For example, Pahang there is only 1 branch but we found out that it may not be enough for the Pahang residents. The people who want to go to The Coffe e Bean may need to travel a long distance to reach Coffee Bean. As a recommendation, we recommend that the management of The Coffee Bean should increase the number of outlet in Pahang.Next we also found out that The Coffee Bean target the youth as their main target. Our group feel that the youths who are the zero income earners might not have enough income to spend on the products offer which will be slightly expensive for them. Thus Coffee Bean has made a mistake, they should target adults with medium and high incomes as their main target group as they can purchase the products without worrying that they would not have enough cash to pay. Store layout and design Layout and design is defined as an arrangement, plan, design of a building, book, picture and etc.As we know, Coffee Bean is one of the franchise companies. Most of their layouts and designs are almost the same in every outlet. For example, the theme colour of the outlet. You can see that their outlet mostly is painted in b rown colour. Brown colour is a natural, down-to earth neutral colour. It represents warmth, wholesomeness, friendliness and simplicity. With this, it gave their customers a warmth feeling when they are inside their outlet. As the customers enter into the Coffee Bean, they can also notice the pictures of the famous drinks at Coffee Bean are being hang up on the wall.Besides that, the playing of the sentimental music makes the environment calm and relaxing. This makes their customers willing to pay for a higher price for a cup of coffee and enjoy it in such calm and relaxing atmosphere. Furthermore, there are also a counter is used to display their products such as packets of teas and coffees, cakes, cookies, muffins and etc in every outlet. It is well organised, people can easily find the products they want as the products are being arranged in order. Each of the products display is being priced.Customers can choose whatever products they want from there and they can see the price fo r it. Moreover, in every outlet, there is a menu board at the counter. It shows the menu of coffee drinks and beverages that sell and their price. Customers can refer to the board and make their orders. There is also a small blackboard hanging on the wall which states that what the special offer is for the day. The outlets for most of the Coffee Bean franchises were big enough, there were spacious space for the customers to walk around without asking the others to shift their chairs to allow them to walk pass.The management of The Coffee Bean also placed some plants in their outlets as part of the decorations on the franchise. They do provide magazines for their customers to read. Next is the lighting system in The Coffee Bean franchises. They usually will use the bulbs with orange colour to give people the romantic and warmth feeling. The lights being used by them are those with nice designs on it and are in various shapes. There is also wifi provided for their customers who wants to serve on the internet for the assignments and business purposes.After stating the store layout and design of The Coffee Bean ;amp; Tea Leaf, our group also do noticed some problem on it. For such, the writings on the small blackboard which is used to write what the special offer of the day are too colourful and it is too small as it can make the customers difficulty in reading it. Thus to improve it, they should provide each Coffee Bean franchises with a bigger blackboard and the writings should be change to a bigger size and the fonts which can be easily readable by the customers. CONCLUSIONFrom the report above, we can see that The Coffee Bean ;amp; Tea Leaf has been growing from time to time, but on the way of growing there are several issues that need retailerÃ¢â¬â¢s attention and take certain actions to correct and to improve it.. From the research, we found out that most of their customers are youngster and are of the middle income earner, but the price of most of the pro ducts offered is around RM10 and above, with this, it may not be affordable for the zero income earners in here the youngsters. As from these, Coffee Bean may need to lower the price of their products.As for the location and the number of outlets of the Coffee Bean, it is shown that there are only 54 outlets of Coffee Bean which operate in Malaysia, 31 franchises in Klang Valley, 6 in Penang, 1 at Ipoh, 2 in Pahang, 3 in Johor Bharu, 2 in Malacca, 6 in Sabah and 3 in Sarawak. As we can see there are unequal balances of outlets located, with this they may need to add more branches on those states which are under stored. Beside this, The Coffee Bean also conducts a small part of host government policy evaluation due to attributed to a lack of resources and reactive approach to market expansion.With this take should pay more attention on it. As on the side of health, a medical report had state on caffeine which conduct in the coffee may cause harm on our health; this had cause the cons umers to cut down on the consumption of coffee which contains caffeine. With this, The Coffee Bean may concentrate on tea left beside the coffee. Next, they offer a variety of products and thus they need to choose certain products which are popular among the tastes and preferences of the consumers.For their advertisement and promotions, they should provide more information on it, such as nutrition labels and the pricing on the banners, this not only can attract the customer, and it may also help those consumer make decision on their choice. Although The Coffee Bean franchises are well organized with their efficient workers, but there still have some problems occur, such as mistake in making order, to avoid this problem occur again, they should provide more training to their worker to improve their service system.