The Marketing Plan Of Yamaha

The Marketing Plan Of Yamaha Introduction India Yamaha Motor Private Limited. Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint-venture with the Escorts Group in 1996. However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui Co., Ltd. entered into an agreement with YMC to become a joint-investor in the motorcycle manufacturing company India Yamaha Motor Private Limited (IYM). IYM operates from its state-of-the-art manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces motorcycles for both domestic and export markets. With a strong workforce of more than 2,000 employees, IYM is highly customer-driven and has a countrywide network of over 400 dealers. Presently, its product portfolio includes VMAX (1,679cc), MT01 (1,670cc), YZF-R1 (998cc),YZF-R15 (150cc), Fazer (153cc), FZ-S (153cc), FZ16 (153cc), SZ SZ-X (153cc), SS125 (123cc), YBR 125 (123cc), YBR 110 (106cc) and Crux (106cc). . Vision They will establish YAMAHA as the exclusive trusted brand of customers by creating Kando (touching their hearts) the first time and every time with world class products services delivered by people having passion for customers. .Mission/Objectives They are committed to: Be the Exclusive Trusted Brand renowned for marketing and manufacturing of YAMAHA products, focusing on serving their customer where they can build long term relationships by raising their lifestyle through performance excellence, proactive design innovative technology. Their innovative solutions will always exceed the changing needs of their customers and provide value added vehicles. Build the Winning Team with capabilities for success, thriving in a climate for action and delivering results. Their employees are the most valuable assets and they intend to develop them to achieve international level of professionalism with progressive career development. As a good corporate citizen, they will conduct their business ethically and socially in a responsible manner with concerns for the environment. Grow through continuously innovating their business processes for creating value and knowledge across their customers thereby earning the loyalty of their partners increasing their stakeholder value. .Customer no.1 They put customers first in everything they do. They take decisions keeping the customer in mind. Challenging Spirit They strive for excellence in everything they do and in the quality of goods services they provide. They work hard to achieve what they commit achieve results faster than their competitors and they never give up. Team-work They work cohesively with their colleagues as a multi-cultural team built on trust, respect, understanding mutual co-operation. Everyones contribution is equally important for their success. Frank Fair Organization They are honest, sincere, open minded, fair transparent in their dealings. They actively listen to others and participate in healthy frank discussions to achieve the organizations goals/objectives. India Yamaha Motor Limited, known for its strong focus on the urban market in the country, has decided to go for a strategic shift in its business move. The two-wheeler player which is only a fringe player in the countrys rural market, which accounts for only 15% of its overall sales, intends to tap this market in a big way. YBR 110, the latest bike from the Yamaha stable to have been launched in India, will target the rural markets. As of that time, Yamaha Crux is the companys best seller in the rural market due to its good quality, long life engine and high mileage. Rural markets are the growth drivers for any company and they are no different. Yamaha has already penetrated into the entry level segment and has been successful in all its ventures. To tap this potential segment, they are focusing on increasing their network strength in tier-2 and tier-3 cities and increasing their sub-dealers in rural areas,, national business head, India Yamaha Motor Limited told Business Standard.Yamaha Crux is doing very well in the domestic and overseas market. Adding to this is their new launch YBR 110 which will definitely target the rural markets, add to their sales numbers and increase their presence in the rural areas. They expect to grow more and improve their performance in rural India, Yamaha is wary of competition from the well entrenched players but hopes to counter the competition through its unique product offering. They dont see any direct competition between Yamahas offerings and other companies. The Indian biking market is undergoing a complete transformation in terms of both product offering and customer preferences. Today, the Indian biker is driven by technology and style and Yamaha products perfectly fit the bill. Though Yamaha has a 12% market share in the deluxe bike segment, it is still a marginal player in the countrys two-wheeler market with a meagre share of 3.5%. Yamaha Motor Corp will invest about $200 million in its Indian unit over three years as it completes a third plant, which will ramp up capacity to 1 million units. For the coming three years, they think they will invest 7-8 billion rupees ($178-203 million), Takashi Kajikawa, president and CEO of Yamaha Motor, told a news conference at the India Auto Expo. Theyre looking at getting double-digit growth. They should touch 10% (market share) by 2010. By end-2010, Yamaha will complete its third plant in India, on the outskirts of New Delhi, and raise capacity to 1 million bikes annually. The company is targeting a share of 10% by the end of 2012. Yamaha has seen a fall in its sales in India, with April-December 2007 figures half of those for the corresponding period of 2006, part of a general decline in bike sales in India brought about by rising financing costs. They were focussing on rural market but by rising financing costs the sales and demand has seen a great fall. Their products enter in the declining stage. Product Declining Stage A reduction in product demand and sales occurs either slowly or rapidly, depending on the type of product provided to consumers, thus causing the product to enter the decline stage. A Sale decline may be due to technological advances, shifts in consumer tastes, or increased competition. Management can choose to continue to market the product (also known as maintaining the product), harvesting the product by reducing overhead costs such as RD in the hopes of continued sales of the product. As this the demand and sales of Yamaha bikes were reducing in India because people wants premium and deluxe products and Yamaha emphasis on value for money. So the sales of Yamaha bikes were drastically declining in Indian market . Sales always decline in this stage. Understanding the decline stage will help us to keep our product producing sales longer. In the decline stage of the marketing product development cycle, product owners lower or discontinue marketing efforts and expenses. The trick is for lower marketing efforts of them while competitors discontinue theirs. Similarly, if we continue to sell our product while our competitors pull their products from the market, we can squeeze out the last few sales for our product. Marketing Product Life Cycle Why Sales Decline Sales decline during this stage of the marketing product life cycle because: the market has become saturated, the technology has become obsolete, or the trend creating the demand has ended. The result is that unless our product is perishable or consumable, few customers still want or need our product. Market segmentation can enable us to find those few customers and to out-market our competitors to get those customers purchases. Marketing Product Life Cycle Using Marketing Research Can Slow Decline To continue making enough sales to earn a profit, we need to use market research to determine: how much you need to lower prices, which distribution outlets we should use at this stage, and how our other products can benefit from brand marketing from our declining product. Just as we want our child to have a long life and live well into senior years, we want our product to extend its life through the decline stage of the marketing product life cycle. Market segmentation can provide extended life to our product by revealing the last remnants of customers needing the product and by discovering new uses for our product. So we can increase our profits through this final stage of the marketing product life cycle. Product Development Meaning- The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product Innovative new products are the fuel for the most powerful growth engine we can connect to. If we decide to develop new products as part of our growth plan, were in good company. New product development can be described as a five-stage process, beginning with generating ideas and progressing to marketing completed products. In between are processes where we evaluate and screen product ideas, take steps to protect your ideas, and finalize design in an RD stage. Following are details on each stage: Generating ideas -Generating ideas consists of two parts: creating an idea and developing it for commercial sale. There are many good techniques for idea creation, including brainstorming, random association and even daydreaming. We may want to generate a long list of ideas and then whittle them down to a very few that appear to have commercial appeal. Evaluating and screening product ideas- Everybody likes their own ideas, but that doesnt mean others will. When we are evaluating ideas for their potential, its important to get objective opinions. For help with technical issues, many companies take their ideas to testing laboratories, engineering consultants, product development firms, and university and college technical testing services. When it comes to evaluating an ideas commercial potential, many entrepreneurs use the Preliminary Innovation Evaluation System (PIES) technique. This is a formal methodology for assessing the commercial potential of inventions and innovations. Protecting your ideas- If we think weve come up with a valuable idea for a new product, we should take steps to protect it. Most people who want to protect ideas think first of patents. There are good reasons for this. For one thing, we will find it difficult to license our idea to other companies, should we wish to do so, without patent protection. However, getting a patent is a lengthy, complicated process, and one we shouldnt embark on without professional help; this makes the process expensive. If we wish to pursue a patent for our ideas, contact a registered patent attorney or patent agent. Many firms choose to protect ideas using trade secrecy. This is simply a matter of keeping knowledge of their ideas, designs, processes, techniques or any other unique component of their creation limited to thereself or a small group of people. Most trade secrets are in the areas of chemical formulas, factory equipment, and machines and manufacturing processes. The formula for Coca-Cola is one of the best-recognized and most successful trade secrets. Finalizing design research and development- Research and development is necessary for refining most designs for new products and services. As the owner of a growing company, we are in a good position when it comes to this stage. Most independent inventors dont have the resources to pay for this costly and often protracted stage of product introduction. Most lenders and investors are trapped by a Catch-22 mentality that makes them reluctant to invest in ideas until after theyre proven viable in the marketplace. If we believe in our idea, we can be the first to market. RD consists of producing prototypes, testing them for usability and other features, and refining the design until we wind up with something we think we can make and sell for a profit. This may involve test-marketing, beta testing, analysis of marketing plans and sales projections, cost studies, and more. As the last step before you commit to rolling your product out, RD is perhaps the most important step of all. Promoting and marketing your product- Now that we have a ready-for-sale product, its time to promote, market and distribute it. Many of the rules that apply to existing products also apply to promoting, marketing and distributing new products. However, new products have some additional wrinkles. For instance, our promotion will probably consist of a larger amount of customer education, since we will be offering them something they have never seen before. Our marketing may have to be broader than the niche efforts weve used in the past because, odds are, well be a little unsure about the actual market out there. Finally, we may need to test some completely new distribution channels until we find the right place to sell our product. Strategic Marketing Tools Our tools are organized under our 5-Step Planning process. See down to find the step and tool that interests us most. The Market To Win Five Step Planning Process. Key Tasks 1.Pre-planning 3b. Define the Key Challenges 3a. Segment the Market 3d. Define the Value Proposition 3c. Target the Best Segments 3.Formulate Marketing Strategy 2b. Internal Business Audit 2a. External Market Audit 1b. Launch the Work 1a. Plan the Work 2.Undertake Marketing Audit 4. Complete the Marketing Plan 5. Implement Review 1. Pre-planning- The pre planning by Yamaha is that they pre-prepare themselves for the this declining stage of their bikes. They already made new bikes from their own product innovations for that drastic situation of declining and just need the right time to launch them. 2. Marketing audit/research-They did market research in advance that their products are declining because of rising financing cost. As they were focussing rural market and rising financing cost has affects the sales of their products. They also research that the taste of consumers are also changed, where their product was declining because of rising financing cost on the other side consumer are ready to buy premium and deluxe bikes. Business for premium and deluxe bikes was increased. 3. Market strategy- The market strategy Yamaha used that time they introduce their right products as per market demand. They focus on premium bikes segment that time. The key challenge was rising financing cost. They understand that the price will be not an issue for the premium and deluxe segment customers so the rising financing cost will not effect the sales and demand of their products and they were right. 4. Market plan- Yamaha uses right market plan with right market audit and with their right products for that time and got success for firm. 5. Implemented review- They implemented the right market plan in that declining stage of their products and in review they got success for their brand, products and maintain their image in motor biking industry. It is a sad fact that many marketing plans do not get implemented well.   There are many possible reasons for this but certainly poor project and change management is a key one.   If we do the pre-planning work well, there is more chance the Marketing Plan will be accepted and implemented as Yamaha done. Re-launch or reposition One strategy is the re-launch and re-position mature brands. Yamaha doesnt use this strategy because the taste of consumers is also changed. Product Innovation Product innovation is another strategy. They uses this strategy they innovate with their own products like Yamaha R1 and introduce their new products. The firm launched four new models in 2008. Two of them was of 125 cc and launched in February 2008. The other two, both of 150 cc, came in July and in November. Three new Yamaha Bikes for India in 2008 Globally, Yamaha Motorcycles has a performance oriented brand image and is known for their technological excellence. But thats not the case for Yamaha India with their damp and not so exciting current line-up of bikes. Realizing the power and growth potential of the Indian 2-wheeler market, Yamaha is bent on re-establishing themselves in India, only this time aiming for the brand image rather than going after mass market sales. As part of their strategy YMI recently launched the world class YZF R1 and MT01, furthermore Yamaha launched 3 new bikes in India in 2008. Yamaha YZF-R15 2008 Yamaha yzf r15 India Sports oriented, Yamaha YZF R15 is a track ready, made for India bike inheriting from the Yamaha R1. The new single cylinder, 4-stroke, 150cc engine has 4-valves, is liquid cooled and have Fuel Injection. The bike also has front and rear disc brakes. R15 launched in India in 2008. The power output was around 18 bhp. Yamaha FZ (150) Yamaha fz 150 India 2008 IMO The best looking among the 3, the Yamaha FZ is a mean-looking naked street bike, again made for India inheriting from the European FZ1. FZ share R15à ¢Ã¢â€š ¬Ã‚ ²s 150cc single cylinder engine but have air-cooled.Yamaha FZ 150 was also launched in India 2008. Yamaha Gladiator Type SS / RS Yamaha Gladiator 2008 SS RS India Yamaha Gladiator was available in two new variants Type SS (Stylish Sporty) Type RS (Racing Sports) and these bikes have the 125 cc engine block. Yamaha says SS RS have 26 improved features to make them dynamic and best performing bikes in their class. Gladiator Type SS / RS was also launched in India by the end of February 2008. Indian consumers got the feel of the superbikes mainly from the movie Dhoom (thanks to John Abrahams Hayabusa) and after that theyve been witnessing a regular growth in both, the sales and options (superbikes) available in India. Sources in the industry confirm that almost 600 superbikes are imported every year, which includes those imported by the company and those that come from indirect routes. Apart from growing in the domestic market, Yamaha is also looking to scale up its exports. They are very hopeful of increasing exports from India. In 2009 and so far in 2010, they have received good response and orders from the overseas markets. they export Gladiator Type SS, FZ16, YZF-R15, Crux, Enticer, Alba, G5 to countries like Colombia, Sri Lanka, Indonesia, Kenya, Bangladesh, Philippines. They definitely look forward to increase their presence in the overseas market and grow in terms of exports. Yamaha plans to capture larger market share in India. It is aiming for a 20% share in the Indian bike segment especially in deluxe and premium range products. They have been receiving an overwhelming response for their premium and deluxe segment models. They have clocked a robust performance so far and should achieve a market share of 20% in the deluxe and premium segments. Currently Yamaha has 3.5% market share in India but the sales are picking up very fast and the company foresees a robust growth in coming years. By end of 2012, it intends to have at least 10-12% market share in the country. They expect to grow 40% in 2010 and 30% in 2011. Their main growth will be from the FZ series. Premium products like YZF-R15 and FZ-15 continue to showcase strong demand and robust sales. In the deluxe segment, they have succeeded in garnering a market share of 12%. SWOT ANALYSIS STRENGTH Good quality Long life engine High mileage Unique product offering Technology Style Brand WEAKNESS Wrong focus segment Emphasis on value for money Wrong trend OPPURTUNITY Innovation Increased product quality Product for rural areas Big market (domestically globaly) THREAT Competition Strength Yamaha has good quality motor bikes. Their bikes engine are long lasting and fuel efficients. They uses Japanese technology for their products. They offers unique products to market. They have different styles of product and they are known for their brand image in motor biking industry. Weakness They were previously focus on wrong segments. They emphasis on manufacturing value for money products. The trend on focusing on rural industry was wrong. Opportunity They have innovated opportunity to launch their new products. They have increased quality products like R15 and FZ16. They have opportunity to rule for urban as well as rural areas. They have big market opportunity domestic and internationaly. Threat Yamaha have lots of threat from their competition. Yamaha is wary of competition from the well entrenched players but hopes to counter the competition through its unique product offering. The Seven Ps of Marketing The basic Four Ps of Marketing Product This is the most important thing in the mix, the physical product or the service that the entity is offering for sale to the public. We will need to market this to the customers by telling them the unique features and benefits the product has to offer as Yamaha did most of the time when its value for money they emphasis on that, when its about looks and image they shows that as well. Price This is the price or amount that the customer needs to giveaway in exchange of the product or service we are offering. Marketing strategy will need to ensure that people will get the perceived value as greater than the price they will need to giveaway. Yamaha give the price of normal bikes and gave the looks of superbikes. Placement Placement or distribution, we will need to spell out where the product or service is available. This may either be online or offline, we will need to inform the public where the products may be available. Yamaha places their products in showrooms as well their full descriptive images online. Promotion We will need to promote the product or service whether online of offline. Online marketing makes it cheaper to conduct promotions and reach as many people as possible. Yamaha mostly uses brand ambassadors for the products and also promotes in motoracing. The next three Ps People In order for any marketing activity to be effective, to will need to train and motivate the people to do their job. The people that delivers the product or service and those that come in between the customer and the manufacturer needs to know their job for the strategy to work. People may also refer to the customers who will need to buy our products, they are very important to be considered in the development of our marketing strategy. Yamaha trained their people on routine intervals so they can get the best out of them. Process Customer satisfaction is one of the most important roles of marketing. If we can follow the process of delivering high quality service or products to the customers, Our marketing efforts will never be wasted. As Yamaha did uses the process and deliver the right product on right time. Physical evidence Online, it is difficult for the customer to know how the product is going to benefit them. Thus, we will need to create an element by which the customer will be able to feel, taste and smell the product or experience the service. We can do reports and articles that will excite the customers about the product and the service. Yamaha shows the physical evidence of their products in commercials, movies and road shows. Conclusions In conclusion, the success of Yamaha is inseparable with the scientific business strategy. The business strategy is a general concept. It includes two indispensable elements called competitive strategy and marketing strategies as well as the concept of the business strategy. The strategic concept of Yamaha is to take the demand-side strategy. Yamaha subdivides the whole market into several objective markets according to the researches about the partialities of different individuals. And then different types of motor bikes are put into the market aimed at attracting different consumer groups. The competitive strategy of Yamaha is to improve the innovative ability to win the competitive advantage. Strong technological innovation ability makes Yamaha stand in the most forward position of motor bikes industry all the time, and characterized this brand by a special vitality. And the marketing mix of Yamaha is to use the integrated marketing strategy including product, price, promotion and place. It values the construction of a brand, the orientation of its products and pays a lot of attention to technology improvement. It increases the sales through sensitive advertisement, presentation to the celebrities and large-scale entertainment.  Ã‚   Expectations from the Course Module: When I started this assignment, I had a perception that marketing is identical to sales. Being from commerce back round I also thought that marketing is conflicting to financial studies. However now I can analyze that marketing is a social science. Through the interactive lectures I have learnt that marketing brings together all the elements of management together, namely finance, operations and human resource management. Overall the course module has geared me up as a person who now has managerial skills in all types of verticals. Learning Outcome: I would like to start my learning outcomes from the same fact that being from the Commerce background and always took Marketing as a very spendthrift department and always thought they are trying to put up their Budgets and Expenditures very high and would not allow them to get around to utilize the Budget as they wished or planned. I was always critical of the plans of the Marketing team in the company where I work and would always argue and win back as much pounds as I could to cut on their lucrative Budgetary proposals. But after the Tutor brought in the various Marketing concepts like Situation Analysis, Branding, Segmentation, Marketing Mix, etc., were very clear. The situational analysis taught me how to use the tools of SWOT, PESTLE, the five competitive forces of Michael Porter. That the objectives of an organization or business should be realistic came to light through the learning of the SMART theory of goal setting. I understood that how the goal of a business or company are aligned at every level of business and that their vision and mission are clear.. The tactics part actually has presented before me the entire marketing mix process. It has taught me how the 7Ps of marketing are useful across an organisation or a product or service. The 7ps have taught me how to integrate different methods in management to analyze the operational effectiveness of a business. Personal Experience: My experience as a student in this subject has been great one and has given me a great learning for imparting at my place of business. The concepts that have been taught in the class by the tutor, I am convinced that I can have great success in the marketing field now. As prior to this course module I had always shied off from marketing plans or topics. This is how I have been able to put my learning experience into the learning about Yamaha.

How does a permanent magnet work? :: essays research papers

Some materials have a feature known as ferromagnetism. The prefix "ferro" refers to Iron, which is one such material. Ferromagnetic materials have the ability to "remember" the magnetic fields they have been subjected to. An atom consists of a number of negatively charged electrons, orbiting around a positively charged nucleus. These electrons also possess a quantity known as spin, which is roughly analogous to a spinning top. The combination of orbital and spin motions is called the angular momentum of the electron. Angular momentum is perhaps most easily understood in the case of the Earth: The earth spins about a central axis, which means it at has an angular momentum around that axis. The planets also have an angular momentum as they revolve about the sun. Now, the angular momentum of an electron is a vector quantity, meaning it has direction. The motion of the electron produces a current, which in turn generates a tiny magnetic field in the direction given by the angular momentum. Thus an atom can behave like a dipole, meaning "two poles". The direction of the orbital and spin angular momentum of the electron determine the direction of the magnetic field for the electron and the entire atom, thus giving it "north" and "south" poles. Different atoms have different arrangements of electrons into their orbits, and thus have different angular momenta and dipolar properties. A ferromagnetic material is composed of many microscopic magnets known as domains. Each domain is a region of the magnet, consisting of numerous atomic dipoles, all pointing in the same direction. A strong magnetic field will align the domains of a ferromagnet, or in other words, magnetize it. Once the magnetic field is removed, the domains will remain aligned, resulting in a permanent magnet. This effect is known as hysteresis. Few materials are actually ferromagnetic; however, all substances have a diamagnetic nature. Diamagnetism means that the molecules within a substance will align themselves to an external magnetic field. The external magnetic field induces currents within the material, which in turn result in an internal magnetic field in the opposite direction. This effect is usually quite small and disappears when the external magnetic field is removed. Some materials are paramagnetic. This is the case when the orbital and spin motions of the electrons in a material do not fully cancel each other, so that the individual atoms act like magnetic dipoles.

Exchange Rate Policies In Developing Countries

The monetary exchange in most developing countries is unstable due to the high level of inflation and weak currencies. The monetary policy of a country usually is affected by its monetary exchange rate. A country can attempt to engage on a reductive or expansionary monetary policy depending on the amount of money that is actually in circulation. A country with more amount of money in circulation with increasing inflationary rate tends to adopt a reductive monetary policy where bank interest rate is increased and expenditure on capital infrastructural goods is limited.On the other hand, an expansionary monetary policy encourages the increase in money supply to the economy by reducing interest and bank lending rate, and engaging more in capital expenditures. No matter the monetary policy embarked on by a government, this goes to influence the monetary exchange rate of such country. According to Svensson (2000) the significance of exchange rate on a country’s monetary policy lies in the additional channel that exchange rate provides for the transmission of monetary policy.Secondly, the exchange rate involve a forward looking variable in which case it provides valuable information in the designing and implementation of monetary policy. Thirdly, monetary policy is enhanced through foreign shocks that are mainly propagated thoroughly in exchange rate. A country can utilize either a fixed monetary exchange rate or a flexible exchange rate, depending on the supply rate of money and the monetary independence it choose to stick with.In a developing country, with weak institutions, the exchange rates of such countries are determined by relaying in comparative measure with currencies from other strong and stable economies. Thus, it is difficult for these developing countries to operate flexible exchange rates. As a flexible exchange rate requires that solid financial structure is laid, and consolidated, fiscal and monetary policy institutions are in place.Developing countries engages in fixed rate to operate its exchange rate. In operating, a fixed rate for monetary exchange entails that the country’s central financial institution, i. . the Central Bank buy and sell the domestic currency at a given rate. Furthermore, the viability of such monetary operation is entirely tied to the country’s level of international reserves held by its authorities. ECONOMICS INDEXES ASSOCIATED WITH A DEVELOPING COUNTRIES Most developing countries are consumers’ society with little production. Most revenue and means for generating foreign exchange for this category of country are on primary goods in form of exploration of natural resources and agricultural activities.Agrarian economies and exploration of primary products are mainly source for generating foreign exchange in developing countries. In other words, the economies of most developing countries are tied down to the apron strings of advanced economies. Electronics, technological produc ts, consumable products and finished goods are the main items of import for developing countries. The costs for importing these finished goods are more costly when compared with the amounts that are paid for exports of primary goods and raw materials from developing countries.The inequalities in the pricing regime in the international market are unfavorable for developing countries. This variable contributes to the foreign reserves of developing countries. Invariably, it affects the values of currency and its exchange rate. The monetary values of developing countries are weak when compared with those of vibrant economies. Inflation affects the economic growth and development of developing countries. In a situation where there is much money in the economy pursuing little goods in the economy, this situation leads to increase in inflation rate.Inflation reduces the purchasing power of people in a given economy. This weakens the value and use of money as a medium of exchange (especiall y in a galloping inflationary situation). To Ogbokor (2004), â€Å"Inflation, in a developing country, encourages inventory accumulation in the form of raw material, excessive investment in merchandise building and landed property. As a result, capital is prevented from being utilized for projects required for economic growth†.The implication of information in developing countries is that there brings about dearth of infrastructural amenities and the reduction of purchasing power of people for embracing a meaningful living. Financial institutions in developing countries, such as in Africa, are highly underdeveloped culminating in lack of depth financial consolidation, extensive inefficiency and over populated urban areas. The stock exchange markets in African countries are still in their embryonic state. They are just beginning to gain ground.In recent times, the Nigerian Stock exchange market (NSE) is making progressive growth in capitalization and growth in stock indexes. T he growth in the Nigerian market especially in 2007 financial operation year in the public reform policy taken in the country’s financial sector has aided the stock exchange market in the country. In 2005, the consolidation of the Nigerian banking sector through the recapitalization has brought great improvement in the banking sector and financial institution (Njoku, 2006).The great feet attained in the reform, policy has led the government to introduce this recapitalization policy in the insurance sector. In the past the Breton institution, such as the International Monetary Fund (IMF) and the World Bank have recommended several medicines for the ailing economies of third world and developing economies. Such measures to embark on a structural adjustment programmed that will involve the devaluation of their currencies, among other measures such as privatization of public enterprises, removal of subsidies on public goods and less government intervention in their countries econ omies inter-alia.Even though these developing countries have put the structural programmed into use there situation economically still remain the same, sometimes made worst. â€Å"This SAP-induced inflation has resulted in adverse income redistribution, leading to increased personal insecurity and lessened personal satisfaction, while heightening interpersonal and institutional tensions and deterring investment and inhibiting consumer spending† (Anyanwu 1992). MONETARY EXCHANGE POLICIES IN DEVELOPING COUNTRIES The move to find an appropriate policy for monetary rate for developing countries has being on for decades now.But the volatile capital situation in these category of countries have made it more challenging for finding a lasting solution for the monetary exchange these countries. In these view, Velasco (2000) argued, â€Å"a significant conclusion that is shared from the volatile monetary exchange rate from developing countries is that adjustable or crawling pegs are e xtremely fragile in a world of volatile capital movements. The pressure resulting from massive capital flow reversals and weakened domestic financial systems was too strong even for countries that followed sound macroeconomic policies and had large stocks of reserves†.Since the 1970s, the volatile nature of the exchange rate of poor and developing countries is seen to be pervasive; as there are no stable, developed and consolidated financial institutions to peg exchange rate for countries and partners that these developing countries transact international business. The concern here according to Collins (1995) was that â€Å"the market for the developing countries currency were so thin, creating a volatile exchange rate that would be disruptive for economic activity†.The missing link for developing countries for a lasting solution for its exchange rate has being on the lack of a consolidated financial institution and stable economy. This situation for developing countrie s is made worst during the 1970s and 80s. â€Å"Prior to the 1980s, it was widely believed that operating a competitive floating exchange rate regime required a level of institutional development that developing countries did not possess† (Quirk, 1994: 135). The volatile nature of the exchange rate as recognized in the economy of developing countries is not entirely an inherent cause sometimes the activities of foreign and developed economies.For instance, the emergence of the European currency bloc has aided in rendering the exchange rate more volatile in developing countries. This according to Collingnon (1999) cited in Kawai & Takagi (2003) â€Å"has made exchange rates between the three major world currencies more volatile and thereby contributed to the reduction of cross-border investment worldwide†. The economic structures in developing countries in term of its embryonic and underdeveloped financial institutions are contributory factors that are making them have an unstable and unpredictable monetary exchange policy.The explanation for the long run inflationary trend in developing nations, according to the Structuralists, is in terms of certain structural rigidities. These include market imperfections and social tensions in those nations, including the relative inelasticity of the food supply, foreign-exchange constraints, protective measures, a rise in the demand for food, a fall in export earnings, hoarding, import substitution, industrialization, and political instability, inter-alia† (Ghatak 1995).The devaluation of currency of developing country is done with the aim to create a real basis for measuring feasible and accurate exchange rate between imports and exports of transactions in the international market. However, â€Å"the usefulness of real devaluation in stimulating growth may seem self-evident; this view is not uniformly supported either by prior theoretical research or by the experience of countries implementing exchang e rate devaluations† (Kamin & Rogers 1997). Devaluation of currency of developing countries have it untold hardship and high cost for goods and services.Looking at the devaluation of the Nigerian currency, Anyanwu (1992) argues, â€Å"†¦the continued naira depreciation has encouraged the smuggling out of goods (especially food stuffs) leading to local scarcity and higher prices. It has also encouraged a brain drain, partly in an attempt to reap the benefits of naira depreciation, the remittances from which are mainly used for consumption activities, again aggravating local prices†. THE SIGNIFICANCE OF A FIXED EXCHANGE RATE FOR DEVELOPING COUNTRIESIn recent times, some scholars have conducted research to analysis the use of a fixed exchange rate as basis for structuring the exchange rate regime in developing countries. â€Å"Probity analysis is used to study the determinants of exchange rate regime, build their empirical models around a framework in which the polit ical cost associated with devaluation under fixed exchange rates plays a major role† (Frieden et al 2000). In a fixed exchange rate regime, the government of the developing country directly set the nominal exchange rate.Given the constraints and undeveloped financial institutions in developing countries, the practice of a fixed monetary exchange rate for developing countries is made difficult. The advantage of engaging a fixed exchange rate is to help stabilize a country’s economy. This is aimed at bringing structural change that would integrate the country’s economy into the world economy order in the quickest time possible. This has made currency board of most developing countries to take the move of attaining a fixed exchange rate as a priority that should be attain (Mart, 2004).Before the fall of the Bretton Woods system in 1973, many countries including many Latin American developing countries had adopted a fixed exchange rate regime. The reason for adopting this exchange rate regime measure is to control inflation, reduce exchange rate volatility or to improve competitiveness (Frieden et al 2000). In addition a fixed exchange rate regime tend to enable government of developing countries be disciplined in that they cannot fix any fiscal rate that would be excessive to cause the end or currency collapse.Fixed exchange rate sometimes is used as a short term corrective to harness a developing country’s monetary policy and help it gain credibility. For some developing countries like Poland, Mexico and Vietnam in the 1990s, the fixed exchange rate was utilized as a temporary measure to re-establish these countries policies to gain credibility (Ohno, 1998). Thus, a fixed exchange rate is acceptable in certain circumstances for developing countries, especially where there are unexpected real and financial shocks.However, this should not be permanently used as a measure for operating a developing countries monetary exchange. The flexibi lity exchange rate is more adequate for revamping the ailing and volatile exchange rate of developing countries. â€Å"In an unstable world economy, they must retain the ability to combine stability and flexibility as circumstances change. For the same reason, currency boards and permanently fixed exchange rates (with no escape clause) are not to be recommended† (ibid).In a galloping inflationary situation in a developing country, the exchange rate policy to adopt is a flexible one that allows currency to float and depreciate. After the tightening of the macroeconomic policies in such a country, it becomes useful to adopt a fixed exchange rate as a measure. As Ohno (1998) puts it, â€Å"As inflation subsides to a more manageable level (say, 10 to 20 percent per year), the fixed exchange rate becomes a symbol of monetary and fiscal prudence and its abandonment becomes politically too costly†.Invariably, it means that the utilization of a fixed exchange rate should come in when the inflationary rate of a developing country is becoming low and at a manageable level. Furthermore, the utilizing of a fixed exchange regime in developing country is significant in the sense that it provides stability of price to local economic agents. This is especially in the case where a country operates an open economy, in which exchange rate volatility may have substantial costs within itself (Frieden et al 2000). As earlier stated a country has the option either to choose a fixed monetary exchange rate or one that is flexible.For developing and emerging economies that want to choose a policy of a permanently fixed exchange rate this can be done through its currency board with it could adopt a common currency (‘Dollarisation’). On the other hand, developing countries can adopt a flexible policy, which according to Taylor (2000) is â€Å"†¦the only sound monetary policy is one based on the trinity of a flexible exchange rate, an inflation target, and a monetary policy rule†. However, the benefits and the cost implication of fixed exchange rates depend on the country and those variables and characteristics it is associated.For instance, a country with exceedingly high level of inflation with the urgently need to stabilize its economy will be beneficial to utilize a fixed exchange rate. â€Å"The higher the rate of inflation; i. e. one below some hyperinflationary threshold, the more a fixed rate will impose competitive pressures on tradable producers and more generally pressure on the balance of payments† (Frieden et al 2000). According to Collins (1995), a government of developing country should opt for a fixed exchange rate regime when it sense and anticipate a small misalignment cost from maintaining the existing peg.In addition, the need for government to adopt a fixed exchange rate is when she believes that discrete nominal exchange rate adjustments have only small political costs, when the government perceived her ability to manage a flexible exchange rate as low, or when the government attempt to stabilize a very high inflation. Third world countries usually are faced with political instability. During period of political instability, the adopting of fixed exchange rate by a developing country is more pronounced (Frieden et al 2000).The drawback associated with a fixed exchange regime for developing country is that an inflation differential between the pegging country and the anchor generates an appreciation of the real exchange rate, which in the absence of compensating productivity gains, hurts the tradable sector and might generate a balance of payments crisis (ibid) THE NEED TO ADOPT A FLEXIBLE EXCHANGE RATE FOR DEVELOPING COUNTRIES For a country adopting a flexible exchange rate, the government of such country has imperfect control over the nominal exchange rate in its monetary policy.In this case, â€Å"the actual exchange rate is influenced by some shocks both at home and abroad The greater the variance of these shocks the less control policy makers will have over the actual nominal exchange rate† (Collins, 1995). The right situation for a government of a developing state to adopt a flexible includes when it perceives and anticipate a large misalignment costs from maintaining a pegged rate, when the political costs to discrete nominal adjustments are high flexibility exchange rate is conducive in such situation.Furthermore, when the government believes her ability to manage a flexible rate was high, and when the government of the state is not planning to stabilize very high inflation (ibid). In the same vain Velasco (2000), argues, â€Å"If shocks to the goods markets are more prevalent than shocks to the money market, then a flexible exchange rate is preferable to a fixed rate for developing countries†.On the other hand, when every movement in the nominal exchange rate is quickly reflected in an upward adjustment in domestic prices, then the insulation provided by flexible exchange rates is nil and thus not expected to provide a satisfactory exchange rate regime (ibid). Under a flexible exchange rate, the change in relative price quickly takes place, unlike the situation in fixed exchange rate where it changes slowly. Thus, there is advantage for developing borrowing under a flexible exchange rate.A flexible exchange rate gives borrowers an incentive to hedge that may be absent under more rigid regimes† (Velasco 2000). With the advantage that accomplish flexible exchange rate, it is still expected that each developing countries should choose and adapt to its own exchange rate system with respect to common basket. â€Å"Whatever the formal arrangement that is adapted; be it a flexible exchange rate regime or a managed float, the important point is that each country in the region should stabilize the real effective exchange rate at normal times by targeting a common currency basket† (Kawai &Takagi 2003).The n eed for developing countries to adopt a flexible exchange rate is more on the volatile nature of the countries with weak financial institutions. The negative effect of exchange rate volatility for developing countries on trade is more obvious when compared to those of developed economies. Taking on comparison between the difference in exchange rate volatility between developing countries and developing countries, it is seen that work on Pakistan’s exports to Germany, Japan, and the United States for 1974-85 suggests that exports were significantly adversely affected by variability in nominal bilateral exchange rates.On the other hand, the effect of real exchange rate variability on the exports of Chile, Colombia, Peru, the Philippines, Thailand and Turkey have attained the clear evidence of generally considerably negative and substantial impact (ibid). Scholars have advocated more of flexible exchange rate for developing countries than a fixed one, however there are demerits associated with the use of flexible exchange rate. According to Collins (1995), â€Å"flexible exchange rates make it very difficult to alter domestic price and wage setting behavior so as to reduce inflation†.More flexible exchange rate regimes may result in higher equilibrium levels of inflation because they do not effectively discipline central bankers (ibid). CONCLUSION The monetary exchange rate of developing is characterized by a highly volatile and unstable exchange rate regime. Thus, it becomes difficult to adopt a fixed exchange rate regime, given the weak financial institutions in this category of countries. Furthermore, the embryonic state of capital market and other financial institutions in developing country further weakens the currency of these countries.Inflationary rate in developing countries are on the increase thus to stable the economy within shorter period, anticipating a short misalignment costs will be adequate for a government of a developing country to adopt a fixed exchange rate. On the hand to correct, a flexible exchange rate regime is suitable for a developing country in managing its economy currency stability over a longer period. The development of financial institutions and the consolidation of capital and money markets of developing country will aid them to embrace a feasible regime that would contribute to strengthen its currency value and ensure a vibrant economy.

Voluntary Organisations - 2731 Words

Voluntary Organisations It is common known that â€Å"voluntary organisations work for the benefit of the community, not to make a profit or to meet any statutory obligation. They do this by acting as advocates and delivering services. They often involve sections of society whose needs are not met by the private or public sector. Most voluntary organisations are working to promote equality of opportunity in some way† (National Council for voluntary Organisations, 1990, p: 1) â€Å"Voluntary ought to mean simply some activity or undertaking, offered in an open and generous spirit and given freely without any hint of coercion† (Heginbothman, 1990, p: 3) Barkhill†¦show more content†¦If it happens something emergency or an accident they might ask to volunteers for help. Some who came as volunteers find the work that is being done quite difficult, and that it does not suits them, so they quit. The volunteers that remain are not too many and even these they attend the club only one or two days per week. In addition they may not be trained properly and fact that they are not paid makes it more difficult for them to come in the club. It did not ask cares of the centres users to volunteer, because for careers who use the service it’s a relief to have their relative as an opportunity for getting out or for going shopping so its unrealistic to ask a carer to come in as a volunteer. What about training if volunteers? However, both staff and the volunteers need training for offering their services. The training that is being done is not enough and the fact that both staff and volunteers are combined to do a training programme is not right, as the responsibilities of the volunteers are not exactly the same with the staff responsibilities. Furthermore, efforts for the use of employment training proved to be unsuccessful, as the employment trainees were unreliable and lasted only for a small period of time. MoreShow MoreRelatedRole of Voluntary Organisation in Promoting Participation in Development2326 Words   |  10 PagesRole of Voluntary Organisation in Promoting Participation in Development Introduction Non-Governmental organisations or NGOs in brief, have been engaged in many social development activities. They are organised by a group of people who feel that they have a moral duty to serve the community. They are organised on a voluntary basis on the principle of service to the socially disadvantaged classes. Their efforts supplement those of the government. Also, they can take up many activities, like organisingRead MoreOxfam : An Organisation That Is Part Of The Voluntary Industry2081 Words   |  9 PagesAn industry is defined by Johnson et al. 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