Pest Analysis Of The United Arab Emirates Economics Essay

Pest Analysis Of The United Arab Emirates Economics Essay The increasing economic development in UAE and Saudi Arabia has made these developing states an excellent nation for those people who choose to expand overseas or are interested in Foreign Direct Investment (FDI). Globalization aids to strengthen their distribution channel and their economies. Saudi Arabia is rapidly gaining importance as a manufacturer and economic leader in the world. These countries have eliminated many of their trade barriers now and have a free trade economic system that attracts many business men from around the globe who seek new consumers and target market for their products (Bloomberg, 2010). UNITED ABRAB EMIRATES PEST ANALYSIS: POLITICAL: The stable political situation of UAE enough to attract almost any major financial institution that needs to invest. These financial institutions can assist in accessing capital markets emerging within the UAE economy. the banking system developed my emirates is a relationship based system of banking with the monetary policy and system capable enough to fulfill funding supplies of a later stage that may be equity leasing or loans (John, 2010). ECONOMIC: Out of three million population of UAE 60% of them are in the workforce. In the UAE economy the level of FDI is very high. Globalization has helped improve the UAE economy greatly by bringing in thousands of workers, services and products from throughout the world. UAE has been a member of World Bank, WTO and IMF for seven years. The country has huge wealth and has experienced trade surplus of approximately over 100 billion dirham in the past year (Tomlinson, 2010). SOCIAL: All of UAE citizens have high living standard, a western lifestyle and continues rising financial positions. The society remains free and open to all types of restaurants, tourism, sport and recreational activities. The multicultural nature of society and economy existing in UAE allows fir many of the foreigners to work there in well paid positions (Cateora and Graham, 2007). TECHNOLOGICAL: The UAE population comprise of young and extremely technologically knowledgeable professionals. The IT industry aids tourism, hotel and IT service sector. The IT software industries and internet usage in the gulf region is double the rate of Europe. The UAE population has the largest users of internet, satellite and mobile phone within the Middle East (Cateora and Graham, 2007). SAUDI ARABIA PEST ANALYSIS: POLITICAL: The politically stable government of Saudi Arab attracts many of the foreign investors and business men. The government also provides various incentives that attract many investors and tourism from around the globe (Morgan, 2010) ECONOMIC: Saudi Arab accounts for the worlds major oil producer and exporters. This allows Saudi economy to earn a high GDP. It also helps its current account to balance against the value of imports when the demand for oil is high (Griffin and Pustay, 2009). SOCIAL: The religious history of Saudi Arabia for the Muslim also holds great significance. In the religious seasons people from all over the world come to pay visit to the holy places. This accounts for much of the revenue for Saudi economy. Hotels, restaurants and residential places earn high revenue in these seasons (McGinley, 2010). TECHNOLOGICAL: Saudi Arab is a country that keeps itself technologically updated as it needs to cater a massive population of tourists and visitors from around the world. Saudi Arab imports technological machinery from Japan and other countries which enables it to be established as well-technologically equipped country (Morgan, 2010) MACRO ECONNOMIC ANALYSIS OF BOTH ECONOMIES: BALANCE OF TRADE: It refers to the difference in the VALUE of imports and the VALUE of exports when a country trades (Stanlake and Grant, 1995). SAUDI ARABIA Saudi Arabian economy reported a trade deficit of about US$ 32638.2 MILLIONS in the year 2009 in spite of being the worlds largest producer and exporter of oil with more than 90% of exports being based on it. Major imports of Saudi Arabia include equipment, machinery, food stuff and chemicals with its main trading partners being European Union, China and Japan (Source: trading economics.com, indicators, international monetary fund) Analyzing the trend we see a stable balanced of trade from the year 2000 to 2006. It then gradually increases till 2009 and falls very rapidly in 2010.we also see rapid rise from the year 2005 to 2006 and from 2008 till 2010 (McGinley, 2010). UNITED ARAB EMIRATES The exports of natural gas and petroleum play an important role in the UAE export economy. It mainly imports chemical, machinery and equipment from its major trading partners: India, Japan, China and European Union (Menafn, 2009) (Source: tradingeconomies.com, Ministry Of Economy) Unlike Saudi Arabia, the BOT of UAE shows a positive upward trend. It grows steadily from the year 2001 to 2005 and rapidly reaches 211.3 billion 2007. It then falls to 170.85 billion in 2008 which is not too sharp a decrease as it has swiftly gone up in the year 2009-2010. GDP GROWTH RATE: It refers to the gross domestic product that is gained by calculating the difference between the imports and the exports (Hobday, 1988). SAUDI ARABIA The economy of Saudi Arabia expanded over 0.6% last year. The worth of Saudi Arabia GDP is 0.6% of the economic world or 369million dollars (Source: tradingeconomies.com, Saudi Arabian Central Department) The trend shown for the GDP rate of Saudi Arabia is not stable. We see a sharp rise and a sharp fall from 2001 to 2002 and from 2003 to 2004 reaching up to 7.66% from 2004 we see a fluctuating GDP rate that falls to 0.6% in the year 2010. This downward trend is not favorable for Saudi Arabia. UNITED ARAB EMIRATES Unlike the, Saudi which expanded over the last year, UAE Economy experienced contraction of 2.10% last year. The UAE GPD is worth $ 261 billion and accounts for 0.42% of the total of the world economies. (Source: tradingeconomies.com, Ministry Of Economy) The UAE analysis of GDP growth shows a high GDP of about 8% from the start of 2001.UAE and Saudi Arabia has a similar trend till 2004. But UAE shows a 12% rise in GDP rate from 2001, unlike Saudi Arabia which shows just 8% from 2001. Saudi Arabia GDP falls to 0.6% by the end of the year 2010 while UAE experienced negative rate of -2.1% (Time out Dubai, 2009) INFLATION: Inflation refers to the general increase in the price levels over the period of time (Stanlake and Grant, 1995). SAUDI ARABIA The inflation rate through the year 2010 was reported at 5.51%. It touched historical heights in 2008 with inflation of 11.08 % (Source: tradingeconomies.com, Saudi Arabian Central Department) The inflation rate of Saudi Arabia shows an upward trend. It is 0.31% in 2001 and continues to rise till 2009. The economy then faces a gradual decrease in the inflation rate and it falls to 3.5% near 2010, from 11.08% same year. By the end of 2010 and the starting of 2011 we see inflation again expected to rise to 5.51% (Tomlinson, 2010). UNITED ARAB EMIRATES The average inflation rate of UAE is 6.27%. The historical highest inflation recorded for UAE had been 11.10 % (Source: tradingeconomics.com, Ministry of Economy) The inflation rate of UAE has grown steadily over the years. The trend shows no downward trend but it continues to grow from 2003 till 2008. Unlike Saudi Arabia high shows fluctuation and steady growth of inflation, UAE economy has faced an upward trend for inflation for the past years. UMEMPLOYEMENT: The unemployment rate is defined as the number of people of the total labor force who are unemployed or/and seeking for work (Turnovsky, 1977). SAUDI ARABIA According to the last report the unemployment rate in Saudi Arabia was 10.5% in Saudi Arabia. From 1999 till 2009 Saudi Arabias unemployment rate reached to the average of 10.5%. The historical height of Saudi Arabias unemployment rate was recorded at 12%. (Source: tradingeconomies.com, Saudi Arabian Central Department) The unemployment rate illustrated above shows an upward trend of rising unemployment in the Saudi economy which is definitely not a favorable indicator for the overall economy. We see the percentage of the labor force unemployed falling from the year 2007 to 2009 sharply but it fails to keep it lower and rises again to 10.5% by the end of 2010. UNITED ARAB EMIRATES The unemployment rate of UAE far exceeds of that of Saudi Arabia. It was calculated as 20.60 in 2004 which was the historical height achieved for the UAE economy according to arabian news (Tomlinson, 2010) (Source: tradingeconomics.com, Ministry of Economy) For UAE economy the unemployment rate shows an upward trend but not as rapidly and sharp as for the Saudi Arabia. But the total percentage of the rate of unemployment in UAE is higher than of Saudi Arabia which has a fluctuating trend for unemployment. INTEREST RATE: It refers to the price of borrowing and lending (Hobday, 1988) SAUDI ARABIA The decisions making authority regarding the interest rates lies with the Saudi Arabian Monetary Agency (SAMA) (Cateora and Graham, 2007). (Source: tradingeconomies.com, Saudi Arabian Central Department) The interest rate trend shown above illustrates a downward initial trend and then a slight increasing graph followed by a sharper fall with a stable and constant rate from 2009 till 2010. UNITED ARAB EMIRATES The UAE interest rate decision making authority lies with the Central Bank of the United Arab Emirates (Ahmed, 2004) (Source: tradingeconomics.com, Ministry of Economy) The interest rate trend for the UAE economy and Saudi Arabian economy is very different. Un like Saudi Arabia UAE faces many fluctuation through the years from 20007 till 2009.it starts at a higher rate, remain stable, falls and then rises quite sharply. It then experiences little fluctuations and rests at 1.80 with the starting of 2011. SUGGESTIONS FOR IMPROVEMENT: SAUDI ARAB ECONOMY The over analysis of past trends suggest that the inflationary pressures might stay manageable and stable over the period of 2010-12 (John, 2010). This inflation will reflect the weakened interest rate .A weakened interest rate will compel people to spend more. Demand for money will rise as indicated by the monetarist view (Cateora and Graham, 2007). The increased supply of money will eventually increase the price levels as the quantity theory of money explains. There may be a fear of inflation which may exist then. Population growth will be generating some local price pressures. The economy is expected to grow by an average 3.7% in the upcoming year 2010-14. Resources reveal that the Saudi economy is expected to be greatly supported by extensive spending by the government thus absorbing a large proportion of the job market. A strong increase in investment projects by the government is also expected. There will be good domestic consumption of oil but weaker oil export due to higher o il prices (Bloomberg, 2010). Due to stronger investment projects from the government the economy will face greater injections into it which will result in falling unemployment rate and rising income levels. This will leave a favorable and positive impact on the Saudi economy in the upcoming years. But looking at the Saudi economy from the Keynes view/Classical theory of income and employment we see as the employment and income levels will rise due to injections in the economy, there will come a certain level, that aggregate demand will no longer bring any changes in the income and employment levels but prices will begin to rise which will indicate inflation in the long run (Shihab, 1996). UNITED ARAB EMIRATES The growth forecast for UAE is lowered by the IMF to less than 1% (Tomlinson, 2010). UAE economy is expected to grow 2.9% following year. The investment activity is expected to be weak as the emirate is trying to redefine its economic objectives (Bloomberg, 2010). As the UAE economy will try to reduce its rate of inflation unemployment is expected to rise as defined by the Phillips curve and his short theory of two devils that exist in the society. For the longer run, the monetarist view can also be taken into account when we will see UAE economy will try to reduce its rate of unemployment. The offered higher wages will ultimately be raising the cost of production in the long run and instantly growing inflation continuing the trend the economy showed for the pat years. This will result in falling income levels and higher rate of unemployment as the withdrawal and injection approach suggests (Menafn, 2009). Experts suggest that the above economies should try to reduce their rate if inflation especially in case of UAE. This may reduce the unemployment level and the levels of income will eventually raise giving people higher living standards. As for Saudi Arabia expert suggests the government to precede with its investment projects and attract other investors from throughout the world. As the current account of Saudi Arabia has been greatly affected by the rising oil prices, Saudi government should concentrate on developing trade and other export product that may cover the current account deficit (John, 2010).

A Mission or Personal Vision Statement (VV1) Essay

We begin this seminar with the development of a personal mission or vision statement. We use this statement in this seminar to emphasize that your time at the UW begins with dreams and visions you hold for the life that is still ahead of you. We ask you to write a mission statement that is reflective of who you are and what your sense of calling, purpose, vocation, or meaning of life. Mission statements are helpful for many reasons, but primarily they are used as a tool to encourage you to consciously reflect on who you are and what you are doing at the UW. As you progress through your educational experience here, you will find that you will take many side roads, you will wander off the path, hurry ahead of yourself, and even become unsure and hidden in the brambles. We have found that a personal mission statement is helpful when the way becomes cloudy; to return to a written statement of your essence and purpose in life can often help you forge your chosen path. Definitions[1]: †¢ â€Å"Values: ‘Concepts, principles, or standards that drive one’s decisions and actions. ’ Examples of values are honesty, persistence, dependability, self-sufficiency, and faith. † †¢ A vision statement: ‘A statement of three or four sentences describing a desired future – not a predicted future. ’ Here is an example of a vision statement (stated as if the vision has already been achieved, so that it is positive and powerful): ‘I am a person who is peaceful and an example to others of that peace, which comes from faith in God. I am considered to be an inspirational teacher of great integrity. I lead a simple life style that includes plenty of time for myself, my family, and my friends as well as service to others. ’ †¢ A mission statement: ‘A succinct, easy-to-remember statement that provides direction for one’s life. ’ Here is an example of a very short mission statement developed from the sample vision statement quoted above: ‘I am committed to living in accordance with my faith in God, maintaining a happy marriage, and being a loving and supportive parent. In my professional life, I seek to empower high school students by providing quality teaching while adhering to my religious principles. I want to live a simple life style. ’ Note that a mission statement may be lengthier if desired, but brevity is important. During this process it is critical to ensure consistency between values, the vision statement, and the mission statement. If these three components are not consistent, it is not possible to devise a workable plan. † To get you thinking about the development of your mission statement, please spend some time thinking about the following questions: Why are you here today? What are the life values that you hold most near to your heart? What is it you are most passionate about? What hopes do you have for your UW experience? What hopes do you have for your life beyond the UW? The answers you develop through these activities and exercises will be the basis of your personal mission and vision statement. Most are 1 page or less in length. We also see this mission statement as highly fluid. As you continue your education, we hope that some of your initial ideas and longings remain the same and we also hope that you will be changed. To this end, the personal mission statement is a malleable document that begins today, will be submitted formally at the end of the seminar, and will continue to represent you and your becoming while at the UW. The following worksheets are a guide to help you answer some of those significant questions in an organized format. Creating or Revising Your Personal Vision[2] by Dr. Linda Phillips-Jones It’s good to create or revise the â€Å"personal vision† you have for your life. A compelling vision can help you succeed, be more satisfied with your life, and get the most out of your all relationships and experiences. Following is a tool for doing that. Importance of Having a Personal Vision Numerous experts on leadership and personal development emphasize how vital it is for you to craft your own personal vision for your life. Warren Bennis, Stephen Covey, Peter Senge, and others point out that a powerful vision can help you succeed far beyond where you’d be without one. That vision can propel you and inspire those around you to reach their own dreams. I’ve learned in my own life and in working as a psychologist that if you don’t identify your vision, others will plan and direct your life for you. I’ve worked with too many individuals who late in their lives said, â€Å"If only. . . .† You don’t have to be one of them. Senge defines vision as what you want to create of yourself and the world around you. What does your vision include? Making a vital change in an area such as health, technology, or the environment? Raising happy, well-adjusted children? Writing a book? Owning your own business? Living on a beach? Being very fit and healthy? Visiting every continent? Helping others with their spiritual development? What are you good at? What do you love to do? What aren’t you good at now, but you’d like to be? All of these important questions are part of identifying your personal vision. |Things I Really Enjoy Doing |What Brings Me Happiness/Joy |The Two Best Moments of My Past |Three Things I’d Do If I Won | | | |Week |the Lottery | | | | | | | | | | | | | |. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Issues or Causes I Care Deeply |My Most Important Values |Things I Can Do at the |What I’d Like to Stop Doing or | |About |(Circle) |Good-to-Excellent Level |Do as Little as Possible | | |Having integrity | | | | | | | | | |Serving/pleasing a higher being| | | | |or calling | | | | | | | | | |Being fit and healthy | | | | | | | | | |Having a nice home | | | | |and belongings | | | | | | | | | |Leaving the world a better || | | |place | | | | | | | | | |Having fun | | | | | | | | | |Learning and improving myself | | | | | | | | | |Making others’ lives easier or | | | | |more pleasant | | | | | | | | | |Enjoying my family | | | | |Others? (Add) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ———————– [1] The 1995 Annual – Volume 1 Training, Pfeiffer & Company, Sand Diego, CA, p. 63. [2] Printed by permissions from: http://www. mentoringgroup. com/html/articles/mentee_1. html CCC/THE MENTORING GROUP, www. mentoringgroup. com, 13560 Mesa Drive, Grass Valley, CA 95949, USA, Phone: 530. 268. 1146 Fax: 530. 268. 3636 e-mail: info@mentoringgroup. com.

The Foolproof Cbest Test Essay Topics Strategy

The Foolproof Cbest Test Essay Topics Strategy The Secret to Cbest Test Essay Topics The most effective argumentative essay writing service on the web is an organization that gives good quality and very affordable help on argumentative essay and argumentative essay topics. Then the very best approach is place a request I will need to acquire essay papers written. Occasionally, selecting an excellent argumentative essay topics will be quite tough. Choosing excellent essay topics for middle school must be a careful procedure, where a balance needs to be struck between topics that could be too simplistic, more fit for the key school, and choosing argumentative essay topics that might be too elaborate or controversial. Essay examples would vary based on the form of essay you want to write. Presenting The Research Paper Research papers must be presented well to make the best impact. New Ideas Into Cbest Test Essay Topics Never Before Revealed The score report will also have the maximum score obtained. The next FSA ELA Writing Practice Tests are on the FSA portal as. Scores are offered around six weeks following your test date. The Cbest Test Essay Topics Cover Up The free CBEST Writing practice test is especially designed to make sure that the test-taker is knowledgeable about the CBEST and has the ability to understand what things to expect when now is the time to take the Writing part of the CBEST. Our study guide has fun and fast video lessons and quizzes that you may use to prepare for the exam. The use of the on-line practice test is to help familiarize students with the on-line functionalities. All the material in the analysis guide, including every practice question, is intended to engage the important thinking skills which are needed to pass the CBEST Test. 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F. Scott Fitzgerald s The Great Gatsby - 1484 Words

F. Scott Fitzgerald’s the Great Gatsby is a detailed and attentively structured book outlining a tragic love story that revolves around Jay Gatsby, a wealthy yet mysterious man, and the dainty and fragile woman of his dreams, Daisy Buchanan. The story is revealed through the eyes of the narrator, Nick Carraway, who significantly becomes a part of Gatsby s life due to the fact he was harshly involved by him. Throughout the book, it becomes evidentially clear that obsession takes over the personality of Gatsby turning his relationship towards Daisy all the more toxic. Moreover, the obsession that Gatsby accumulates towards Daisy causes severe consequences towards his own life ultimately leading to his own downfall. Overall, Fitzgerald’s†¦show more content†¦He tries to recreate the past in the present and create the once thriving relationship he had with Daisy once again. Throughout the book, it is significantly clear that Gatsby’s obsession for Daisy con trolled his actions. He did everything he possibly could to be noticed by her and to connect with her once more. The first example of this lies within the location of his house itself. Gatsby even states that the reason for purchase of this specific house was to be closer to his one true love, Daisy. On page 83, Jordan Baker says, â€Å"It was a strange coincidence, I said. But it wasn t a coincidence at all. Why not? Gatsby bought that house so that Daisy would be just across the bay.† This quote shows the obsession that Gatsby had for Daisy because of the fact he would move to a certain location just to be that much closer to her. Secondly, the huge and gigantic parties that Gatsby had were no coincidence either. It becomes apparent that the reason Gatsby had those enormous and elaborate parties was in hope of the arrival of Daisy. Jordan Baker even says, â€Å"I think he half expected her to wander into one of his parties, some night,† Ultimately, we see this obsess ive pattern having a restriction on Gatsby s life. He never gave himself the opportunity to socialize because of the craze he had over Daisy, and that s why he is developed as this mysterious and unspoken character.

The Social Inequalities And The Biosocial Ecology - 732 Words

Viral hemorrhagic fevers (VHFs) are found around the world that is one group of illness caused by virus of five distinct families: Arenaviridae, Bunyaviridae, Filoviridae, Flaviviridae, and Paramyxoviridae (Center for Disease Control and Prevention, 2013). These include the Ebola and Marburg, Lassa fever, and yellow fever virus (U.S National Library of Medicine, 2016). Garrett point out that less than a decade ago, one of the biggest problem in the world was the lack of resources available to combat the multiple scourges ravaging the world’s poor and sick. (Garrett, p. 171). Today, thanks to private donations, more money is being assigned toward pressing health challenges. But because the efforts of this money is paying for a largely uncoordinated and directed mostly at specific high profile diseases resulting a problem because the world is poised to spend enormous resources to conquer the diseases of the poor (Garrett, p. 171). This paper will discuss the epidemiology of VHF s., the social inequalities and the biosocial ecology. The five families of viruses that cause viral hemorrhagic fever are most found over the world. The Arenaviridae are a family of virus whose members are generally associated with rodent- transmitted disease in humans causing severe illnesses (Center for Disease Control and Prevention, 2013). Flaviviridae are a family of positive, single stranded, enveloped RNA virus. They are found in arthropods, primarily ticks and mosquitoes, and can infectShow MoreRelatedGender Roles : Gender And Gender1587 Words   |  7 Pagesacross cultures. We can propose that men are viewed as more independent and dominant than women; and women will be viewed as very dependent when viewing across cultures. Supporting Theories Sandra Bem was a psychologist that was a leading expert on the social construction of gender roles. She discussed the gender schema theory. Gender schema theory proposes that the phenomenon of sex typing derives, in part, from gender-based schematic processing— a generalized readiness to process information on the basisRead MoreEssay on Criminological Theories13456 Words   |  54 PagesChapter 5. Chapter 6. Chapter 7. Chapter 8. Chapter 9. Chapter 10. Chapter 11. Chapter 12. Introduction to Criminological Theory Deterrence and Rationale Choice Theories Biological Theories Psychological Theories Social Learning Theory Social Bonding and Control Theories Labeling Theory Social Disorganization, Anomie, and Strain Theories Conflict Theory Marxist and Critical Theories Feminist Theories Integrating Criminological Theories 4 7 11 15 18 22 25 28 32 35 38 41 3 Chapter 1 Introduction

Petroleum and Case Study Free Essays

UNIVERSITI PUTRA MALAYSIA A CASE STUDY ON PETRONAS CARIGALI SDN BHD (Facing the International Challenges) WAN ZAINUDDIN HJ WAN MUDA GSM 1997 7 ? ‘IESIS A CASE STUDY ON PETRONAS CARIGALI SDN BHD (Facing the International Challenges) BY WAN ZJUNUDDIN HJ WAN MUDA MATRIC NO. : 45161 MASTER OF BUSINESS ADMINISTIUlTION MALAYSIAN GRADUATE SCHOOL OF MANA. GEMENT UNIVERSITY PUTRA MALAYSIA. We will write a custom essay sample on Petroleum and Case Study or any similar topic only for you Order Now SERDllNG SELANGOR DmUL EHSAN DECEMBER, 1997 A. Case Study On Petronas Carigali Sdn Bhd (Facing The International Challenges) By Wan Zainuddin Hj : Wan Muda 45161 Matrie No. This Case Study is submitted in partial fulfilment of the I’equirement fol’ the Mastel’ of Business Aclministl’ation, Malaysian Graduate School of Management, Univel’sity Putn Malaysia, Sel’dang, Selangol’ Dal’Ul Ehsan. Confidentiality Statement The Case Study is purely an academic exercise undertaken by the author. The case herewith contains certain information that shall not be disclosed to the public. Thus no part of this document is to be reproduced in any form and be used in any manner without prior written permission from the author. Acknowledgement First, I would like to extend my deepest gratitude and appreciation to my Supervisor, Professor Dr. Mohd. Ismail Ahmad for his guidance, comments and valuable suggestions during the course of preparing this case study. A big thank you and credit shall also be given to all lecturers throughout the whole MBA programme for their interesting lecture which makes all of us more clear and understanding on the business concept and strategy which is important for today’s competitive business environment. A word of thank shall also go to my wife and children who provide me a valuable inspiration and have been the most patient, understanding, supportive and encouraging for taking this course. Without them, the completion of this case study and the MBA programme would not have been possible. Thank you so much – I love you all †¦.. . Originality of the Document I, Wan Zainuddin Hj Wan Muda, Matric No. : 45161, a final year student of the MBA programme at the University Putra Malaysia, Serdang, Selangor Darul Ehsan hereby confirmed that the case repared for the above programme is purely the sole effort of my goodself. Name: Date : ‘allg? _1Ihd ?l_1Xl†I †¦.. ,†¦Ã¢â‚¬ ¦. ,, a.? __ ? P. T___ F_ Ii,. ,. ) FIGURE 1. 0 PETRONAS GROUP OF COMPANIES – 8 – I I I I I 1 I MANAGEMENT COMMITTEE GROUP PVBUC AFFAIRS BOARD OF DIRECTORS PRESIDENT ICEO DATO’ M. HASSAN MERJCAN . : I I I I I -I 1- . .1 I BOARD AUDIT COMMrmE lAMe I INTERNAL AUDIT REGIOAAL OFACCS I I I HEALTH, SAFETY ENVIRONMENT COMPANY SECRETARY . LEGAl†¦ SERVICES CORPORATE PlANNING BUSINESS DEVElOPMENT I I I CORPORATE DEVELOPMENT 1 I I I I EXPlORATION . PROOUCTKlN SECTOR I . s PETROCHEMICAL SECTOR I ITEC? OGY . 1 1 RESOURCES MANAGEMENT SECTOR REF? ING ‘ MARKETING SECTOR II TRANSPORTATION MARINE SERVICES SECTOR I ) HUMAN RESOURCES MANAGEMENT SECTOR I 1 FINANCE SECTOR J FIGURE 2. 0 PETRONAS ORGANISATION STRUCTURE – 9 – PETRONAS was now a full-fledged oil and gas company which engaged in a wide range of activities. covering petroleum exploration and production. oil refining. marketing. trading and distribution of crude oil and petroleum products. natural gas processing. ransmission and distribution. natural gas liquefaction and marketing oil liquefied natural gas. and manufacturing and marketing of petrochemicals and fertilisers. Due to the government’s depletion policy. oil production in the country was levelled off between 600. 000 bopd to 650. 000 bopd. Today. within a strong foothold in the country. while building on to its domestic operations. PETRONAS was actively expanding into the global market forging towards its vision of becoming a multi-national petroleum corporation. As PETRONAS President says †¦. The most critical challenge would be to achieve and keep our competitive edge in the international arena where we would be up against the most established and experience players. In order to realise the above. we need to re-examizJe ourselves order to achieve the iUld cOlltlnuously improve 011 everytlJJllg we do in most cost effectiveness. efficient utilisation of our resources †¢Ã¢â‚¬ ¦. we must continuously seek improvement in our organisation and respond positively to the constant changes in the dynamic business environment that we  · operatem †¦Ã¢â‚¬ ¦ † . (3) 10 – 2. 1 . 1 VISION STATEMENT† MISSION STATEMENT PETRONAS, having consolidated its position at home and wi th the expertise and knowledge acquired over the span of 20 years of its existence, was spreading its wing and venturing abroad to pursue its â€Å"dreams†. In order to realise organisational goals, PETRONAS has recently launched the long term Vision Statement as well as creating a Mission Statement to benchmark and evaluate organisation success. PETRONAS VISION STATEMENT † To be a Leading Oil and Gas Multinational of Choice † PETRONAS MISSION STATEMENT We are a business entity, Petroleum was our resources, Our primary objective was to develop and add value to this national resources, Our obj ective was to contribute to the well being of the people and the nation† 2. 1 . 2 SIIARED VALUES In addition to having both Vision and Mission Statement, PETRONAS also launched organisational â€Å"Shared Values† to enhance organisational objective in achieving the goals. – II – Loyalty Professionalism – Loyalty to the Nation Corporation Com mitted, Innovative and Proactive and Always Striving for Excellence Integrity Cohesiveness Honest and Upright United in Purpose and Fellowship With the above Vision, Mission Statement as well as establishing â€Å"Shared Values† statement, it was envisaged that PETRONAS employee could foster a better teamwork, quality product and services which could provide competitive edge, and hence would portray PETRONAS image, reputation and success of the organisation not only at home but also at the international arena. 2. 2 PETRONAS CJlRIGALJ SDN BBD PETRONAS CARlGALI SON. BHD. (peSB) was one of the PETRONAS wholly owned subsidiaries incorporated on 11 at May 1978. With the increase business activities in the exploration and production of oU and gas and good potential for industry development, peSB has been entrusted by PETRONAS to spearheaded the challenge in the oil and gas exploration, development and production not only locally but also at the international arena. To date, peSB was the operator of more than 12 fields, producing about one third of the country’s total oil and gas production. The fields operated by PCSB locally are Ouyong, Oulang, Bekok, Tapis and Pulai in Peninsular Malaysia, the Tembungo and Samarang in Sabah, nine oilfield in – 12 – Baram Delta area in Sarawak. Meanwhile, in the international area, peSB was operating Dai Hung in Vietnam, and few platforms in the Caspian sea which undergoing development phases. Currently, PCSB has been involved in a number of projects internationally. Among the international projects undertaken by PCSB was in the Asia region such as Thailand, Philippine, Vietnam, Burma, Indonesia, India; in the Middle East such as in Iran, Iraq, Syria; in Eastern Europe such as Turkmenistan, Uzbekistan, Azerbaijan; in Africa such as in Sudan and many more. Through the years, PCSB kept on venturing into new concession area and ggressively participate in the international arena to further strengthen its business. (4) 2. 2. 1 PCSB VISION STATEMENT Many multinational companies set a long term organisational objectives or goals known as vision statement. Likewise, as business activities were faCing a stiff challenge in todays global market environment, PCSB has also established company vision in reali sing its goals and objectives. With the vision, peSB was expected to enhance its capabilities. PCSB vision was † To Be A MultinatiolJal E P CompalJY ofClJoice, Creating V alue TlJroug COlJtinuous ImprovemelJt GrowtlJ â€Å". h – 13 – 2. . 2 PCSB BUSINESS OBJECTIVES One could argue that it was virtually impossible for an organisation to function without having establish some business goals or objectives. An objective set a future target or end result that an organisation wishes to achieve. It also set a direction where the organisation was heading towards achieving its dream. As part of globalisation effort to purse its business activities, PCSB has set few organisational objectives to spearhead the challenge of the oil and gas industry that was very competitive particularly in the international arena. PCSB business objectives were ; o To actively participate in the exploration of petrolewn resources for the maximwn benefit of the peopJe o To attain lull operational and technical expertise through manpower development and the transfer of technology in the shortest possible time o To achieve an adequate production level so as to meet the nation? total crude oil and gas output o To ensure maximum Malaysian involvement in the fabricating and assembling of aD production facilities and provision of ancillary and supportive services in the oil and gas industry. The above business objectives were in line with PETRONAS President wishes who said that† †¦ The most critical challenge would be to achieve and keep our competitive edge in the international arena where we would be – 14 – up against the most established and experienced players. In order to be competitive. we need to constantly re-examme ourselves iUJd CDlltbluously Improve Oil everytbblg we do in order to achieve cost effectiveness. efficient utilisation of our resources†¦Ã¢â‚¬ ¦. we must continuously seek improvement in our organisation and respond positively to the constant changes in the dynamic business environment that we operate 11(5) m†¦. . †¢ 3. 0 PCSB ORGANISATION STRUCTURE Having diversifying its business activities outside the domestic environment. PCSB basically adopting functional concept of the organisation structure. Current PCSB organisation structure composed of essentially five (5) main divisions that were Exploration. Development. Commercial Services. Domestic Operation. and International Operation. Each of these divisions was headed by the General Manager who reported directly to the Managing Director/Chief Executive Officer. Exploration division focus on finding new oil and gas reserve that could provide substantial return to the company. Whenever Exploration teams find new oil and gas reserve. the field development was then be the responsibility of the Development division to further study how to produce hydrocarbon from offshore. Development division composed of Petroleum Department. Drilling Department. Design Department. Construction Department. and Services Department that specialise in certain work scope. Commercial Services Division mainly focused on all contractual matters pertaining to the project development and exploration activities. Meanwhile. for both – 15 – How to cite Petroleum and Case Study, Free Case study samples

Changing Geography of Banking and Finance

Question: Discuss about the Changing Geography of Banking and Finance. Answer: Introduction This chapter consist of a thorough review of the existing literatures compiled by the renowned scholars on the subject matter of analysis of the financial statements of the banks. The primary focus of this chapter will be the discussion on the author views about the financial development of the banking system in Australia and Canada. In order to get a detailed conceptual and theoretical foundation for the research, it is essential to review and analyze the existing literatures. The views of authors provide support to the conclusions drawn from the data analysis, thus, carrying out literature review is a crucial exercise in the overall research work (Jesson, 2011). In the context developed above, a literature review has been carried out with an objective to find out and analyse the views of the existing literatures on analysis of the financial statements of the banks. In order to make it simple and understandable, the entire discussion of this chapter has been segregated into five major headings. The first heading covers discussion on comparison of the financial statements of the banks. The second heading covers accounting procedures and ratio analysis used by the banks in analysing their financial performance. Further, the discussion has been extended to contribution of Westpac banking corporation in the development of the Australian economy. Apart from the above, the literature review also covers discussion on the contribution of Bank of Montreal in the economic development of Canada. The chapter of literature review has been ended up with discussion on the types of services provided by the banks their contribution in the overall development of the country followed by conclusion. The hypothesis of this literature review is to test that whether the banking system plays a critical role in the development of the economy of the country or not. In order to test this hypothesis, the two major banks operating in Australia and Canada, USA have been analysed. Comparing Financial Statements of Banks In the views of Follett (2011), the comparison of financial statement of two organizations with each other is crucial in assessing the financial performance and position. The major components of the financial statements comprises of balance sheet, profit and loss statement and cash flow statement. Comparing profit and loss statement provides evaluation of the financial performance while comparison of the balance sheet is crucial to assess the financial position (Follett, 2011). However, it is important to note that two things must be comparable that is the base should be equal. In the case of comparison of the financial statements, it should be kept in mind that the financial statements of two companies operating in different countries would be different (Follett, 2011). As per Pounder (2009), the financial statements are prepared as per the instruction provided in the financial reporting framework prescribed in a particular country, for example, companies in USA follow US GAAP (general accepted accounting principles) and IFRS while in Australia, the companies prepare financial statements based on Australian GAAP along with due consideration to IFRS (Pounder, 2009). Pounder (2009) further states that the differences in the financial reporting frameworks of two countries make the figures in the financial statements incomparable. Thus, in order make it comparable, there should be used analytical tools such as ratio analysis, vertical analysis, horizontal analysis and trend analysis (Pounder, 2009). As per Greuning and Iqbal (2008), the income statement of two banks operating in two different countries could be better analyzed by performing common size analysis. In this analysis, every item of the income statement is presented as a percentage to the net sales. Taking the items as a percentage of net sales provides a common base which can be use for comparison purposes. Greuning and Iqbal (2008) further states that common size analysis is not only useful in analyzing the income statement but it can also be used in analyzing the balance sheet (Greuning and Iqbal, 2008). As per Tracy (2012), financial analysis is crucial in determining the financial health of the company. The four core areas of business such as profitability, liquidity, efficiency, and solvency are analyzed using the information provided in the financial statements. Further, it is essential to know that where the company stands in the market place. The analysis of the financial statements through ratio analysis and comparison with the competitors and the industry averages provides evaluation of the standing of company (Tracy, 2012). Since, the banking system plays a pivotal role in the economy development of a country; therefore, it becomes important to analyze the financial performance of banks to have a glimpse of economy soundness in the country. Accounting Procedures and Ratio Analysis Used by Banks As per Pounder (2009), the accounting procedures are the policies, provisions and rules that guide the preparation of the financial statements of the companies. As has been stated by Pounder (2009), two companies operating in different countries follow different accounting procedures and policies. Due to different accounting policies and procedures being followed, the figures in the financial statements tend to differ (Pounder, 2009). In comparing the financial statements of two companies, particular when two are situated in different countries, it is essential to make the base equal. This can be achieved by applying various analytical tools as discussed in above section. The ratio analysis is also one of those tools which are applied to make the base equal for comparison purposes (Tracy, 2012). In the view of (Tracy, 2012), generally, the ratio analysis covers major areas of financial analysis such as profitability, liquidity, efficiency, and solvency. The leading profitability ratios comprise of net margin, gross margin, return on equity and return on assets. Further, the liquidity ratios, which indicate sufficiency or lack of funds, comprise of current ratio and quick ratio. The ratios such as assets turnover, accounts receivable days, and inventory turnover days indicate the management efficiency in conducting the business operations. Last but not the least; solvency aspect is covered by the ratio such as debt equity ratio and interest times (Tracy, 2012). Solvency depicts capability of the company to pay off long term debt on the due date. However, in the views of Golin and Delhaise (2013), the financial analysis of banks requires special attention to the areas such as liquidity and capital adequacy. For this purpose, CAMELS Rating System, being recognized worldwide, is considered useful. Six crucial factors such as capital adequacy, asset quality, management, earnings, liquidity, and sensitivity are analyzed in CAMELS Rating System. These six factors cover the business of banks from end to end and provide a comprehensive analysis of the financial performance and position. Therefore, CAMELS Rating System is an added tool that is used by the banks and rating agencies in analyzing financial performance (Golin and Delhaise, 2013). As per Golin and Delhaise (2013), capital adequacy ratio is computed to evaluate that the bank possesses enough capital to pay off the public deposits and absorb the potential losses. The capital adequacy ratio is computed by dividing the tier-1 and tier-2 capital with risk weighted assets possessed by the bank. The regulations prescribe minimum capital adequacy ratio which the banks operating in that country have to comply with. Further, the CAMELS system provides for measurement of the assets quality, which is carried by computing ratios such as non-performing loans (NPLs) to total loans and NPLs to total equity (Golin and Delhaise, 2013). The earning ability is analyzed by computing ratios such as net interest income margin, cost to income ratio, and return on assets. Further, the assessment of quality of management is also crucial which is carried out by computing total assets growth, loan growth, and earnings growth. The liquidity is a major concern for any business. It is measured by computing and analyzing the ratio such as Customer deposits to total assets and total loan to customer deposits (LTD) (Golin and Delhaise, 2013). Contribution of Westpac Banking Corporation in Australia Petkovski and Kjosevski (2014), has stated based in their research work that the financial sector which includes bank also pays a crucial role in the overall economic growth and development. The banks and capital market are the foundation of every economy. Further, it is perceived that the role of banking and finance sector has increased even more in the recent years in all the countries across the globe. The macro economic factors such as gross domestic product, interest rates, and inflation are the majorly affected by the banking industry (Petkovski and Kjosevski, 2014). Considering these facts, it is essential to analyze the contribution made by one of the Australias largest banks namely Westpac Banking Corporation in the economic development. Westpac Banking Corporation is among the top banks operating in Australia. Primarily, the bank operates in Australia and New Zealand providing a wide range of services in the areas of retail banking, institutional and commercial banking, and wealth management. Westpac is one of the oldest banks in Australia engaged in business since the year 1817 (Westpac, 2016). The bank has grown significantly over the years causing positive impact on the overall economy of Australia. In the year 2014, the company possessed total assets worth A$770 million which shows that significance of the company in the economic development (KangaNews, 2015). At present the Westpac group operates in five segments such as consumer bank, business bank, BT financial group, Westpac institutional bank, and Westpac New Zealand. The group has enlarged its size manifold in the recent years. Its consumer bank segment operates with 1429 (Westpac, 2016) branches which depicts its significant contribution to the economic growth. Further, Westpac New Zealand also has grown substantially to have 193 branches in operation (Westpac, 2016). The groups revenues have been observed to be increasing at a rapid pace in the recent few years. In the year 2012, the revenues of Westpac group were A$16,771 million, which grew to A$20,889 million in the year 2015. The increase in revenues shows that Westpac has contributed to the gross domestic product of the company significantly. Further, the group has also contributed to the social development by providing employment to the people at a large scale. In the year 2014, the core full time employees of the group were 33,586 (Westpac, 2014), which show significant contribution of the group in the social development in Australia. Contribution of Bank of Montreal in Canada In the views of Goodhart (2004), a sound banking system helps the economy to grow by driving the growth path. Every facet of the economy, for example, productivity, inflation, exports and imports, social development are dependent to a lot extent on the soundness of the banking system (Goodhart, 2004). As per the report of Canadian Bankers Association, the banking and finance and insurances sector contribute approximately 10.30% directly to the gross domestic product (Canadian Banking Association, 2016). In addition to this, the banking and insurance sector also provides employment to the people at a large scale in Canada, which is its indirect contribution to the economic development. Bank of Montreal, one of the oldest banks of Canada, was established late in the year 1817 (BMO, 2016). The banks grow substantially over the years to provide diversified financial services mainly in the North American region. As per the annual report of the company, there are 45,234 full time employees working with the company and its subsidiaries (BMO, 2016). The size of employees depicts that the bank contributes towards the social development of the country significantly. Further, it has also made direct contributions to the gross domestic product of the country by increasing the productivity levels. The growth in revenues indicates the increased productivity of the company and its increased contribution to the gross domestic product of the country. In the year 2014, the total revenues of the company along with its subsidiaries amounted to $10,997 million, which went up to $12,575 million in the year 2016 (BMO, 2016). Types of Services Provided by the Banks Alessandrini, Fratianni, and Zazzaro, (2009), State that the banking system has gone under changes in the recent years all around the world. It has been observed that the banks have incorporated in their service portfolio, the new and modern services besides the conventional services of accepting deposits and lending money. Now the services provided by the banks extend to the investment banking and portfolio advisory areas (Alessandrini, Fratianni, and Zazzaro, 2009). In respect of Westpac Banking Corporation, it could be observed that the bank started with simply accepting public deposits and lending money. However, at present the company operates through five segments such as consumer bank, business bank, BT Financial group, Westpac institutional bank, and Westpac New Zealand. Through these five segments, the bank provides a wide range of services to its customers. Few of the leading services provided by the bank include accepting deposit under saving account and term deposits, extending loan under personal loan, home loan, and investment loan. Apart from this, the bank also provides the services of credit card, ATM, Bank guarantee, and investment and financial advisory. Further, the bank also deals with foreign exchange transactions, leasing services, and merchant banking services. Thus, the service portfolio of the bank has grown to a substantial level. In the same way, Bank of Montreal has also modified its service portfolio, now the bank has added services such as cash management, foreign exchange, wealth management, and investment advisory to its service portfolio. Further, the bank has brought out new products for the commercial customers, for example, bank guarantee and bill discounting. Conclusion: The discussion in this chapter is built up on the views of the existing literatures on the subject matter of contribution of the banks in the development of the economy. From the discussion carried out in this chapter, it could be articulated that the banking system is foundation of the economy. The economy can not be viewed as growing in the absence of a sound banking system. The literature review of the existing literatures reveals that the banking system plays a pivotal role in the overall development of the economy. In Canada, the banking and finance and insurance sector contributes approximately 10.30% to the gross domestic product of the country, which indicates its role and importance in the economic development. Apart from this, the literature review also covers discussion on the services provided by the banks. From the discussion carried out in this regard, it could be articulated that the service portfolio of the banks have increased substantially in the recent years. The banks have now jumped from providing services on the conventional model to the modern model. The modern model provides for inclusion of more services beside accepting public deposits and lending money to the public. The views of the authors in this regard depicts that the banks have shifted their focus from conventional banking to modern banking, which includes investment banking and advisory services, foreign exchange services, and commercial services such as bank guarantee and leasing. References Alessandrini, P., Fratianni, M., and Zazzaro, A. 2009. The Changing Geography of Banking and Finance. Springer Science Business Media. BMO. 2016. History of Bank of Montreal. [Online]. Available at: https://www.bmo.com/home/about/banking/corporate-information/history [Accessed on: 13 December 2016]. BMO. 2016. Managements Discussion and Analysis. [Online]. Available at: https://www.bmo.com/ir/files/F16%20Files/2016MDA.pdf [Accessed on: 13 December 2016]. BMO. 2016. Statement of Managements Responsibility for Financial Information. [Online]. Available at: https://www.bmo.com/ir/files/F16%20Files/2016CFS.pdf [Accessed on: 13 December 2016]. Canadian Banking Association. 2016. Issues Brief: Banks and the Economy. [Online]. Available at: https://www.cba.ca/contributing-to-the-economy [Accessed on: 13 December 2016]. Follett, R. 2011. How to Keep Score in Business: Accounting and Financial Analysis for the Non-Accountant. FT Press. Golin, J. and Delhaise, P. 2013. The Bank Credit Analysis Handbook: A Guide for Analysts, Bankers and Investors. John Wiley Sons. Goodhart, C. 2004. Financial Development and Economic Growth: Explaining the Links. Springer. Greuning, H.V. and Iqbal, Z. 2008. Risk Analysis for Islamic Banks. World Bank Publications. Jesson, J. (2011). Doing Your Literature Review: Traditional and Systematic Techniques. London: SAGE. KangaNews. 2015. Incorporating Australian Securitization and Covered Bond. Australian Securitization Journal, 8(2015), pp. 1-53. Petkovski, M. and Kjosevski, J. 2014. Does banking sector development promote economic growth? An empirical analysis for selected countries in Central and South Eastern Europe. Journal of Economic Research, 27(1), pp. 55-66. Pounder, B. 2009. Convergence Guidebook for Corporate Financial Reporting. John Wiley Sons. Tracy, A. 2012. Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to Analyze Any Business on the Planet. RatioAnalysis.net. Westpac. 2014. Annual Report of Westpac Group. [Online]. Available at: https://vpr.hkma.gov.hk/doc/100167/ar_14/ar_14_eng.pdf [Accessed on: 13 December 2016]. Westpac. 2016. Our Business. [Online]. Available at: https://www.westpac.com.au/about-westpac/westpac-group/company-overview/our-businesses/ [Accessed on: 13 December 2016]. Westpac. 2016. Our History. [Online]. Available at: https://www.westpac.com.au/about-westpac/westpac-group/company-overview/our-history/ [Accessed on: 13 December 2016].