The Changing Global Economy ( ECON401 ) Assignment

The Changing Global Economy ( ECON401 ) - Assignment Example The firms which had failed in UK allowed their businesses to overextend through risk taking and excessive leverage, over dependence on risky product streams like derivatives or buy-to-let mortgages, poor decisions of management in respect of acquisitions, over reliance on wholesale funding. Unprecedented innovation and growth have been seen in the financial sector over the past two decades as new products and higher returns have been sought by the investors in the era of low interest rates. Banks also had an obligation to understand the risks to which they are exposed. The complexity of certain financial instruments and the interconnected developed global market often did not provide well understanding of the dangers involved with the banks, its investors and boards, central banks and regulators (HM Treasury, 2009). The risk models of banks were proved as flawed which was based on incomplete application of principles of finance. It was believed that risks had been widely distributed throughout the financial system by the method of securitization but it proved as mistaken and risks posed by global increase in leverage were under-estimated. The remuneration policies of banks have contributed to the riskiness of financial system as they focused too much on short term prof it. Market discipline also proved as an ineffective constraint on risk taking in financial markets (Independent Commission on Banking, 2011).There were certain deficiencies in the corporate governance of banking institutions. The board of banks failed to understand this and they got prone to the risk management processes of their firms. The senior management also did not question on the sustainability and nature of achieved higher returns. Many institutional shareholders were not able to monitor the effectiveness of senior management of banks nor did they challenge the decisions of board of bank. Generally, the banks and investors rely on the assessments of credit rating agency but

Buyers behaviour - samsung galaxy Essay Example | Topics and Well Written Essays - 750 words

Buyers behaviour - samsung galaxy - Essay Example This is more so in a market where competition is intense, sellers are many, and the target market is relatively the same. Such a market environment informs the analysis of Samsung Galaxy in terms of the behaviour exhibited by its buyers. Samsung Galaxy buyers, just like any other consumer, are rational, and they seek to maximize their welfare at the minimum cost possible. However, this does not mean that they can only buy cheap phones that are offered in the market. Purchases of Samsung Galaxy are influenced by a number of variables, all of which are captured by the decision making theory. In problem recognition, buyers identify their need to buy a phone. This creates a difference between what they have and what they want to purchase. The need or desire to buy Samsung Galaxy constitutes the main problem for which the buyer seeks a resolution. Once the problem has been recognized, the buyer has to move to the next step, which is information search (Jackson, 2008, p.47). The informatio n available to the buyer influences the decision that the buyer makes. While total market information may be hard to capture, product reviews, friends, and advertisements among others act as sources of information for the buyer. Price, quality, product features, brand image, company reputation, product design, and past experiences (Grant, 2011, p.73) are some of the key variables that matter to a Samsung Galaxy buyer. ... On the same note, the respective companies target relatively the same markets. In this respect, product differentiation is vital as buyers move to settle on the best available alternative (Kerin, et al. 2006, p.205; Ward & Aleksandra, 2008, p.227). The actual product choice by the buyer depends on the prior steps in the theory of decision making (Michell, 2011, p.180). Here, the buyer will settle on the alternative product that suits his/her need, desire, tastes, and preferences, not overlooking product affordability and quality factors. For majority Samsung Galaxy buyers who were interviewed, the most influential factors in product choice are product features and design. These two are complemented by price, brand image, Samsung’s reputation in the telecommunications industry, and consumer past experiences with Samsung products. The outcomes exhibited by Samsung Galaxy buyers in regard to the decision making theory show mixed reactions about the product, the company, and the m arket environment. Samsung Galaxy features like camera, GPS, entertainment, calendar/address book, media player, internet access/search/email, handset, design, price, and battery life scored more than more average level of importance to many buyers. Preferences for Blackberry and iPhone in the same line are equal to, exceed, or exhibit lower levels compared to the Samsung Galaxy. On the same note, market trends and personal concerns for each buyer on the product vary significantly (Castells, 2007, p.246; Peters, 2009, p.69). Also, an outstanding factor in the whole analysis is consumer awareness and Samsung’s reputation in the industry. In this respect, the price, features and design of the smartphone inform