*영* 스토어

*영*

개인

팔로워0 팔로우

소개

등록된 소개글이 없습니다.

전문분야 등록된 전문분야가 없습니다.

판매자 정보

학교정보

입력된 정보가 없습니다.

직장정보

입력된 정보가 없습니다.

자격증

입력된 정보가 없습니다.

판매지수

판매중 자료수

8개
전체 판매량

15개
최근 3개월 판매량

0개
자료후기 점수

-
자료문의 응답률

-

전체자료 8개

Old suitcase on a new train CAPM

Old suitcase on a new train: Capital Asset Pricing Model and the current economyThe Capital asset pricing model (CAPM), a textbook model that is still extensively applied in the business, uses a formula that determines and quantifies investment conditions. However, the model is also believed to be based on very limiting assumptions, thus rendering it ineffective in many cases and the current complexity of the economic situation. Further in the essay this hypothesis will be elaborated on, explaining why the model in question is not effective, what the industry experts are saying about its effectiveness, and why, in spite of that, it is still applied to determine asset returns and risks. The particulars of the model and its proprietary formula will be presented and explained in the first part of the essay, which will set the course for further elaboration on its uses. The report will touch upon the connection between the CAPM and the ongoing developments in the financial industry, descri 348). So, the basic premise of the CAPM is that investors expect to get greater returns or risk premiums for greater risks, and investments into risk-free assets which come with the rate of interest. This is based on the principle that market “risk premium is the difference between the return on the market and the interest rate on bills” (Brealey, Myers and Marcus, p. 347). The model is too simple to determine the desirability of individual assets as the complexity of the relationship between the characteristics of individual assets and investment opportunities depend on the expected rate of return and risk (Sharpe 1964, p. 431) to the extent that the other available opportunities also see a return on investments.Higher correlations with the market index translate into more ‘risk’, even though lower correlations have some value as well, seeing how higher correlations reduce the diversification opportunities of a security or portfolio (van Dijk 2011) in comparison with other options. Hly macro events, and their relationship is directly proportional: if the market is up, the macroeconomic changes tend to be positive (Brealey, Myers and Marcus 2009, p. 340). All companies and all stock returns are affected by various macroeconomic events such as changing interest rates, foreign exchange rates, oil prices, and government spending (Brealey, Myers and Marcus 2009, p. 340).As opposed to capital asset pricing model which calculates the cost of capital in relation to the expected return on a security that has a similar level of risk (Brealey, Myers and Marcus, p. 353), a theory of market equilibrium pertaining to asset price under conditions of risk (Sharpe 1964, p. 427) would be more suitable and consistent with the financial theory of the current economic conditions. It is not uncommon to use diversification to hold on to the market risk but reduce variability from unique risk, seeing how market risk responds to the diversification of individual stock unique risk (Sharpe, is likely that it would result in “higher for stocks with higher risks and expected [returns]” (Fama and French 1992, p. 428). Rather than being examples of asset pricing anomalies, the regularities show the consistencies that satisfy the well-known asset pricing models, demonstrating that it is easy in this economy to point out size-related regularities as they account for the cross-section of expected returns of asset pricing model (Berk 1995, p. 275).The connection between the expected return and anomaly variables is not directly relative to the variable-measured operating characteristics, instead the theoretical risk premium contained in the market characteristics of these variables are used to predict expected return (Berk 1995, p. 277). Bearing in mind that there seems to exist a relatively strong correlation between momentum effect and total volatility, it is necessary to reflect on a relationship between volatility and expected return and assess whether it’s driven by the sizetidimensional” (Fama and French 1992, p. 428), they observe that some stocks such as defensive stocks are not very sensitive to market fluctuations, so their risks are lower and they fare better when the market goes down, contrary to aggressive stocks which amplify market movements and are riskier, but they also provide greater returns, in cases when the market goes up (Brealey, Myers and Marcus 2009, p. 340).This discussion provided a more comprehensive look at the Capital Asset Pricing Model by explaining its purpose and the criteria as they relate to the theory of asset pricing in terms of risk and returns. In addition, it pointed to the simplicity and logic of the model, which was developed to deal with straightforward responsiveness of stocks and their expected returns and the market activities, however without the capital asset forces of the economy. This is why, in many experts’ opinion, the model is too simplistic and ineffectual in this advanced industry. Even though the formuT 9

경영/경제| 2017.01.03| 9페이지| 1,000원| 조회(60)

경영학, 경영, CAPM, economy

미리보기

닫기
Business Model Interrogation – Dell Inc.

Business Model Interrogation – Dell Inc.Word count : 1826 wordsIntroductionDell had been the market leader in consumer PC market segment and had held the largest worldwide market share (15.9%) until 2006 (Gartner, 2007). The company led the market due to its business model of direct sales of low-priced and customised desktop PCs. During the last five years, the company has gradually shifted its focus to business clients and ventured into service sector (CNNMoney, 2012).Dell Inc. is one of the largest technology companies of the world. It serves the market through its sales representatives, telephone-based and online sales (dell.com) and indirect sales channels (Dell Inc., 2011). The company employs more than 100,000 workers and has a market share of 12.1% in the PC market worldwide (Gartner, 2011). For the year 2011, Dell ranked 41 in Fortune 500 firms and experienced record growth of 16% in revenues. The financial achievement has been linked to the focus on enterprise solutions and seCs,Servers and networking products,Storage solutions and services,Mobility products, andSoftware and peripheralsThe changes in Dell’s business strategy started in 2007. The first visible step was to breaking down of product reporting by types in 2008. The company classified the products into enterprise (servers & networking, storage, services, software & peripherals) and clients (PC desktop & notebooks) (SeekingAlpha, 2011)As a result of this classification of reporting in the segments, the breakdown by each segment showed the company revenue coming from each segment. Dell derived only about 20% of its revenue from consumers. Revenue from desktop PCs decreased from 44% in 2005 to 23% in 2011, mobility products increased from 22% to 30%, software increased from 12% to 17%), networking from 10% to 13%, storage from 3% to 4% and services revenue more than doubled from 6% to 13%. Moreover, on the market segment side, the company reported in 2011 that its consumer business generated only 18ents. These should be combined with the security systems and softwares to increase value for business clients. Hence, these pose questions to the management of the company.Business ModelDell had gained and sustained market share due to successful implementation of its distinctive business model – selling directly to consumers. As consumer markets started to mature, the demand for PCs declined and, with this, the profitability of PC markets decreased. The company’s focus on increased profit margins has led to a shift from ‘selling single product’ to ‘selling complete solutions to business clients’ (SeekingAlpha, 2011).Dell had traditionally focused on costs reduction activities such as cutting off intermediaries and efficient inventory management (Margaretta, 2007). Its cash conversion cycle in inventory management has improved from minus 36 days in 2004 to minus 84 days in 2012 (Business Wire, 2012). Another cost reduction activity has been moving towards higher customer segments and gw markets.Dell had enjoyed competitive advantage by incorporating technologies in consumer PC market and reducing cost through its efficient systems. But its price advantage was tied to the efficient manufacturing process for desktop PCs, which lost its value as technology brought notebooks in market which were produced cheaply by competitors (Yahoo Finance, 2012).The market pressures have resulted in a distinct transition in the strategic focus for the company following 2004. The company now has started focusing on business clients, expanding its server product offerings and software development (Shah, 2012), thus utilising technology in new business ventures. Dell started shifting its strategic focus by starting a series of acquisitions in 2007. On 27 February 2012, the company officially declared that it intends to move away from consumers products to business products, announcing the production of more servers (Gupta, 2012). According to some experts, that these acquisitions will b with Dell for 2006 Year-End Results. [online]. [Accessed 12 Mar 2012]. Available from World Wide Web: < HYPERLINK "http://www.gartner.com/it/page.jsp?id=500384" http://www.gartner.com/it/page.jsp?id=500384 >Gartner. 2012. Gartner Says Worldwide PC Shipments in Fourth Quarter of 2011 Declined 1.4 Percent; Year-End Shipments Increased 0.5 Percent. [online]. [Accessed 12 Mar 2012]. Available from World Wide Web: < HYPERLINK "http://www.gartner.com/it/page.jsp?id=1893523" http://www.gartner.com/it/page.jsp?id=1893523 >Griffin, R. W. 2006. Management. South-Western College Pub.Gupta, P. 2012. Dell unveils new servers, says not a PC company. [online]. [Accessed 12 Mar 2012]. Available from World Wide Web: < HYPERLINK "http://www.reuters.com/article/2012/02/27/us-dell-idUSTRE81Q27A20120227" http://www.reuters.com/article/2012/02/27/us-dell-idUSTRE81Q27A20120227 >Hingley, M., 2011. UK Cloud Computing Forecast – Recession-Busting Growth, IT Candor [online] Available from: [ HYPERLINK "http://i=1]

경영/경제| 2014.01.10| 10페이지| 1,000원| 조회(100)

DELL, 델컴퓨터, 비지니스 모델, bcg matrix, Business Mo..

미리보기

닫기
Capital Asset Pricing Model (CAPM) and the current economy

Capital Asset Pricing Model (CAPM) and the current economyContents TOC o "1-3" h z u Hyperlink l "_Toc339206760" 1. Introduction PAGEREF _Toc339206760 h 3 Hyperlink l "_Toc339206761" 2. Systematic risk and Unsystematic risk PAGEREF _Toc339206761 h 3 Hyperlink l "_Toc339206762" 3. Risks and returns PAGEREF _Toc339206762 h 4 Hyperlink l "_Toc339206763" 4. Problems with practical application of CAPM PAGEREF _Toc339206763 h 7 Hyperlink l "_Toc339206764" 5. Conclusion PAGEREF _Toc339206764 h 7 Hyperlink l "_Toc339206765" 6. References PAGEREF _Toc339206765 h 91. IntroductionInvesting in capital markets involves tremendous amounts of risk. Investors seek to be paid for taking risk through their investments in the financial markets. They seek to reduce their exposure to risk as a way of increasing or sustaining their returns on investments. One way that investors are able to reduce risk is through diversification within their portfolio of asset holdings. However, it has been pth those assets that perform well over a given period of time. It is argued that such a strategy could help diversify much of the risks involved in investing. In this perspective, risks that can be diversified away and reduced in such a manner are referred to as unsystematic risks (Fama & French, 2002; Shanken, 1992). The other type of risk that cannot be diversified away is known as systematic risk / market risk. These cannot be diversified away because investors and market players have different levels of risk tolerance and attitude.There are many implications of the above risks to investors. If an investor wishes to avoid risk entirely, his investments must only be in risk-free assets / securities. Where the investor decides to hold shares in very few companies, his investments will be exposed to some systematic and unsystematic risk since he will not have done enough to spread his risk so that the unsystematic risk is diversified away (Fama and French, 2004; Patterson, 1995). Howev any existing unsystematic risk since such risk can be reduced and diversified away through holding a wide portfolio of stocks / investments (Sharpe, 1964; Banz, 1981). The fact that systematic risk varies between investments, Capital Asset Pricing theory assumes that investors may demand higher return from investments in those shares whose systematic risk is bigger and wider. The above CAPM propositions also apply to companies looking to invest in projects. According to the theory, companies will seek a return on investment in a given project that clearly exceeds the rate of return of risk-free securities in compensation for the systematic risk they take on. Similar to the individual investor scenario, a company can diversify away unsystematic risk therefore, according to the theory of Capital Asset Pricing, a premium for unsystematic risk is not necessary (Zhou, 1994; Fama & French 1992). Overall, companies, like individual investors, should demand higher return on the investment proriod. The Capital Asset Pricing Model utilises the principle that returns on equity within the entire market are expected to be much higher than returns generated on free-risk investments (Fama & French 1992; Roll, 1977). The difference between the two returns mentioned above (i.e. risk-free returns and market returns) is known as excess return. Furthermore, the difference between this expected return on a given asset and the return on a risk-free investment can be measured as the excess return of the entire market multiplied by the beta factor of the security. It is upon the above notion and assumption that the CAPM formula is generated and the main reason why this theory is widely adopted. To put the above in a mathematical concept, below is the CAPM formula as proposed by William Sharpe in 1970.Here is the formula:Kₑ = Rf + (Rm – Rf) βWhereKₑIs the cost of equity capitalRfIs the risk-free rate of returnRmIs the market rate of returnβIs the beta factor of the security4. Problems withd that the beta values a susceptible to changes from time to time.5. ConclusionThe Capital Asset Pricing Model has been used within the financial industry over a very long period of time since its creation in 1970 by a financial economist, William Sharpe. The model provides a formidable foundation upon which investors and financial market participants can understand the concepts of risk and return as well as aiding them in reducing their exposure to such risk through diversification of their portfolios based on guidance provided by the Capital Asset Pricing Model. However, despite the fact that CAPM is widely used and widely accepted, it is clearly not a perfect tool particularly in the face of recent developments within markets.6. ReferencesBanz, R (1981) ‘The Relation between Return and Market Values of Common Stock’, Journal of Financial Economics, 9, 3-18Bodurtha, J. N and Nelson C. M (1991) ‘Testing the CAPM with time-varying risks and returns’, Journal of Finance 46, 1485-1505Fam.

경영/경제| 2014.01.10| 10페이지| 1,000원| 조회(102)

회계이론, CAPM, accounting, capital asset prici..

미리보기

닫기
Chandler Theory Scale and scope

Chandler TheoryScale and scope‘Large managerial enterprises have been primary engines of economic growth.’Recently, large scale of enterprises became common around the world. However, it was started from 1900s in United States first. The Development of mass production had changed the industry and brought tremendous increase of output by the technological innovation. The most important factor that affected to the enterprises was managerial hierarchy and it had been argued by Alfred Chandler at the very first time. Chandler states that companies in the US have strongly influenced by the innovative business form ‘managerial enterprises’ and achieved huge cost save by the economies of scale and scope. The new term ‘Chief executive officer’ (CEO) had been appearing within this system and the firm started to pursuit maximization of long-term profit instead of short-term gains. The separation between capital and administration could change the corporate culture and this management control sysong-term profit. According to Chandler (1992) it is essential to become an innovator or first mover to accomplish the economies of scale and scope.Chandler’s theory is mostly applicable to U.S development. He described the United States as the ‘Seedbed of managerial capitalism’ (Chandler, Seedbed). In 1880s, the second industrial revolution has been arising and the firms in U.S started to merge across the counter to adapt to this change. Chandler mentioned that the motivation of this change was ‘organisational capabilities’ and these firms gratified to reap the economies of scale and scope (Chandler in Harvey). Not all the firms were succeeding the merge but most of them achieved horizontal and vertical combination (Chandler. Scale and Scope). The most successful merge case was Standard Oil which had been managed by Rockefeller. Moreover, the Exxon which was subsidiary company of Standard Oil shows how it was successful. Exxon expanded their oil capacity from 500 barrels to 1500 barrelMarket was stable before the second industry revolution. Especially, the culture of British was very conservative and maybe they didn’t want to change the system. (Chandler, 1992) In case of Germany, the characteristic of capitalism seemed similar with U.S but there was clear difference. They have emphasized the co-operative instead of competition. It was significantly different to the U.S Ideal. Organisations were run by family members and they aimed for cooperation of each other. Actually, it had proved success but it foes against Chandler’s theory. The companies for example, Bayer, BASF and Hoesch succeed in chemical and dye industry (Hanna, 1991). Compare with U.K industry, German show better performance in dye production. In 1913, German produced 140,000 tons but British firms produced only 4,400 tons. (Chandler, 1995) In case of Japan, Chandler stated that they have independent managers but they were not the professianl managers. The Japanese Enterprise system described that sevelves in the international market by the use of personal capitalism.Payne (Schmitz, 1993) described that the consumer tastes between Britain and the US is different. British consumers prefer craftsmanship and individual character in their products while the US consumers prefer standardised products. Thus, it can be interpreted in Porter’s (1990) perspective that firms in Britain follows ‘focus’ or ‘differentiation’ strategy whereas the US followed ‘cost leadership’ strategy through the mass production. Furthermore, Porter (1990) considered more in external factors rather than internal factors explains the success of industries in textile industry of Germany and the petroleum industry in the US. He said that they have been affected by clustering that contributes in a large extent to the growth of those industries. In this sense, he sees the economic downturn of the Britain is because lack of numbers in clusters of home economy.Although there are some similarities between the US and Germat. Therefore, Japanese firms could gain economies of scale and scope without adopting Chandler’s ideal theory.As it was mentioned above, Chandler didn’t consider the role of the external factors such as the State intervention. China is a developing country that highly controls its firms. The large enterprises are supported by government via regulations and quotas, so making viable for them to enlarge productivity and increase growth. In addition, most of firms are family owned, and foreign direct investment (FDI) has been increased. By the 1990, China was the second largest partner of FDI after the US.In conclusion, there is a relationship between M.E and the contribution to the economic affluence in U.S industry, but it is not easily applied to other nations as they have their own culture, different economic structure and different capitalism. As for all circumstances there is no perfect answer to success in business. It can be said that M.E can contribute to some extent to the succes1

경영/경제| 2014.01.10| 7페이지| 1,000원| 조회(129)

포터, 기업이론, Porter, theory, 챈들러, Chandler, Scale..

미리보기

닫기
Strategic Analysis of Facebook

Strategic Analysis of FacebookIntroduction - Overview of Facebook Inc.Facebook Inc. is a privately owned American multinational internet company which operates the popular internet social networking site facebook. The company is headquartered in California but has key operational offices in other parts of North America, Europe and Asia. The company was founded by Mark Zuckerberg through the launch of its social networking site facebook in 2004, initially within Harvard but it was soon extended to other colleges in Boston and then to all Universities in the USA (Phillips 2007). The site address (facebook.com) was officially purchased in 2005 and by 2006 the network had expanded and anyone with a personal email account could join. The site is free to join and gives users the opportunity to share information and connect with friends, join groups online and play games with the condition that the user must be 13 years or older. The company continues to build on the features of the site and action between users on the siteCustomization which implies how well the user can personalise the siteCommunication; which refers to how the site communicates with its user.Connection; which defined the extent of its linkage with other sites andCommerce; which supports other aspects of e-commerce such as shopping.The definitions show that facebook has strategically incorporated all elements of the 7Cs into the site; making it attractive, user friendly and highly functional. This has been vital in attracting a high volume of users.Several strategic management initiatives have also been employed by facebook in recording the level of success that has been achieved. In creating the facebook site the company developed a variant of an existing product (given that competitors such as Myspace and Twitter were already operational) and introduced it as a new product in an existing market. This is reflected in the Ansoff matrix, shown in figure 1 (the Ansoff matrix gives a theoretical model for ef through consistent innovation and adaptability of the site to new applications.Again this is reflected in the Boston Consulting Group (BCG) Matrix, shown in figure 3. This shows firms have the option of building, holding, harvesting or divesting in a market.Figure 3: The BCG MatrixHaving successfully attracted a large share of the market facebook is now successfully holding its market share while still building on it, thus protecting and improving on its competitive position in the industry.The success of these strategies is reflected in the popularity of the site and these have translated to positive financial results for the company. Being a free social networking site, the bulk of facebook revenues comes from advertising. To boost income streams from this source the company entered into a strategic partnership with Microsoft where facebook will serve as the exclusive advertising platform for Microsoft both in the USA and overseas (Microsoft.com). This has been financially rewardinsiderable high charges from developers by accepting reduced rates to encourage developers to switch over. The implication of this is a drop in revenue for facebook in the long term.Solution to the ChallengesA major driver of market dominance for technology companies is innovation. Innovation enabled facebook differentiate itself, gain a large share of the market and earn substantial revenue. Thus facebook must consistently remain innovative in developing products and applications that will prevent facebook fatigue by consistently drawing user’s attention. This will ensure continuous patronage by users and with increased patronage come the possibility of a higher click through rate. A higher click through rate will in turn encourage advertisers to continue to patronise facebook. The company could also engage in occasional surveys to determine customer satisfaction and subtly entertain suggestions from users on improving on its services.It is equally imperative for facebook to diversify 2).Das, A., Fowler, G. and Rapport, L. (2011). Facebook Sets Stage for IPO Next Year, online article, available at Hyperlink "http://online.wsj.com/article/SB*************8**************************4.html" http://online.wsj.com/article/SB*************8**************************4.html (accessed 22 February, 2012).Denton, N. (2007). Facebook Consistently the Worst Performing Site, online article, available at Hyperlink "http://valleywag.gawker.com/242234/facebook-consistently-the-worst-performing-site" http://valleywag.gawker.com/242234/facebook-consistently-the-worst-performing-site (accessed 22 February, 2012).Jobber, D. (2004). Principles and Practice of Marketing, 5th Edition, McGraw Hill.Lee, Y. and Benbasat, I. (2004). A Framework for the Study of Customer InterfaceDesign for Mobile Commerce, International Journal of Electronic Commerce, Vol.8, no. 3, pp: 79-102.Leggatt, H. (2007). Advertisers disappointed with Facebook's CTR, online article, available at HYPERLINK "http://www.bizr2

경영/경제| 2014.01.10| 10페이지| 1,500원| 조회(155)

페이스북, bcg matrix, Business Model, facebook, Porter

미리보기

닫기