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Journal of Applied Management and Investments



ISSN 2225-3467



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Current Issues & Archive

 Volume 3 Issue 4 2014                                  Abstracts







Testing for Consistency of CAMEL Ranking of Indian Banks

M. Dash 

This study examines the consistency of rankings of Indian banks under the CAMEL framework. Consistency is necessary in order for the model to give an objective ranking of the banks and discriminate clearly/correctly between high and low performing banks. The analysis is performed on a sample of thirty-seven banks, including twenty-one public sector banks and sixteen private sector banks, over a period of ten years (2003-04 to 2012-13). The study also compares the overall ranking of the public sector banks vis-à-vis the private sector banks. The study uses two nonparametric statistical techniques: the Friedman test to analyze the consistency of rankings, and the Mann-Whitney test to compare rankings of public and private sector banks.

Keywords:  CAMEL model, financial health, bank failure, consistency, nonparametric statistical techniques


Credit Appraisal Procedure of SME Loan: An Empirical Investigation on Selected Private Commercial Banks in Bangladesh

N. Florin

Modern secured finance mechanisms in Bangladesh offers a powerful means of mobilizing the value of a broad range of capital as a loan security creating profitable opportunities for a wide spectrum of potential users and providers of financial services. The present study intends to investigate the various aspects of the credit appraisal procedure of SME loan by private commercial banks in Bangladesh. It is found that all the sampled bank are practicing the same procedures in terms of enterprise and entrepreneur selection criteria, marketing, management, financial and technical and security aspects but difference was found in terms of  socio-economic aspect.

Keywords: SME, commercial bank, financial service, credit appraisal, Bangladesh


Literature Survey on New Participative Pricing Mechanisms for Wine Tastings

J. H. Hanf

“Pay What You Want” is a pricing strategy where buyers pay any desired amount for a given commodity, sometimes including zero. Giving the buyers freedom to pay what they want can be very successful in some situations, because it eliminates many disadvantages of conventional pricing, e.g. the fear of whether a product is worth a given set price and the related risk of disappointment. In Germany most often wine tastings are for free despite of the associated costs. However, visitors often feel obliged to buy some bottles of wine even though they are not in favor of this wine. Hence, dissatisfaction might occur. Hence, other strategies have to be developed in order to cover the costs while reducing the risk of dissatisfaction. In this context we want to discuss the possibility to introduce “Pay-What-You-Want” pricing in the German wine business. We will first provide a literature overview. Afterwards we will combine these findings with existing example.

Keywords: Pay-what-you-want, wine tasting, Germany


Revenue Diversification and Investment Policy:  The Case for Nonprofits

P. Hatfield, S. Richtermeyer, S. Webb

Nonprofit organizations (NPOs) develop an investment policy for the investing of net assets. The NPO literature is void of studies that explain why some NPOs invest conservatively while others invest aggressively. Recent literature has focused on the importance of revenue diversity for NPOs. Findings suggest that the more diverse the revenue sources the more prepared the NPO is to avoid financial distress. Our study examines whether revenue diversity and investment policy are strategically related. We find that NPOs with fewer revenue sources are more likely to invest in risk-free assets and bonds and avoid risky securities.

Keywords: nonprofits, diversification, investment policy, risk


The Icelandic Geothermal Cluster, the Transition to Clean Energy in Emerging Markets and the Role of International Financial Institutions

H. Þ. Hilmarsson

Iceland has received international attention for its use of geothermal energy for space heating and electricity production. The focus of this article is on the potential of an Icelandic geothermal exporting cluster engaging cross border in emerging markets. This could include provision of consultant and advisory services, construction, operations and maintenance of geothermal power plants, as well as sponsors and shareholders in geothermal projects. Being a sponsor/shareholder would require cross border capital investments. Given the higher risk profile in emerging market countries, than in many high income countries, the participation of international financial institutions and export credit agencies will be discussed as sources of funding and risk mitigation for geothermal projects.

Keywords: Geothermal cluster, Iceland, emerging markets, cross-border trade and investment, funding and risk mitigation instruments



Sustainable Pre and Post Haulage with Longer Combination Vehicles

K. Lumsden, V. Roso, M. Kjell, K. Westerlund

The concept of Longer Combination Vehicles (LCV), i.e. vehicles up to 35 m in length, has a potential to improve pre- and post-haulage; however the same is not allowed by the regulations in Sweden. The purpose of this paper is to investigate how to make the pre- and post- haulage more sustainable, from an environmental and an economic perspective. The results indicate that the use of LCV would decrease the number of trips per route and therefore lower the environmental effects on the route.

Keywords: longer combination vehicles, pre- and post-haulage, sustainability, Sweden



Market Segmentation Strategies: A Moderate Role of Product Complexity

M. R. Marcone

The research was established in order to analyze how firms within an industrial sector evolve their marketing strategies. The paper also intends to see if there is awareness, especially regarding leader firms, that segmentation strategies require the adoption of both a bottom up and a top down approach, in order to benefit from the opportunities offered by the emergence of temporary micro-segments. This study analyses strategies of fashion marketing that firms of a medium sized take up in order to function successfully within a plurality of national markets. The study adopts a qualitative mode of research that conducts exploratory research through a methodology of longitudinal multi-case studies.

Keywords: strategic marketing, market segmentation, retailer-manufacturing relationship



IT Operations in Retail Banking: A Case Study

F. Saleheen, M. H. Miraz, R. Ramli

E-business has created a remarkable revolution all across the world particularly in the North America, Europe. Even countries in Asia have progressed a lot. To keep with the same pace, Bangladesh is also moving forward. It is a new horizon for Bangladeshi banking industry. Although, most of the nationalized banks even having hundreds of branches covering all over Bangladesh did not progress satisfactorily  due to poor IT infrastructure, data synchronization, network coverage and skills within the banks as an end user made this even more challenging. One the other side, private banking sectors are offering in a fast paced environment at par to global context. These research findings are based on primary data gives an opportunity for the industry practitioners to review their operations practice and suggest the intricacies to improve the operational efficiencies in the IT platform to upgrade the E-commerce facilities. The economy has been greatly benefited through using online banking which covered all over Bangladesh. It has made revolution in the rural periphery. Ultimately it has change the life style of the people by bringing them under the umbrella of technology and real time data information.

Keywords: retail banking, E-business, IT operations, Bangladesh



Samsung Smartphones and Core Competency

N. Sawaikar

By 2014 Samsung has become the leading smartphone manufacturer with a market share of around 30%. This case looks at how this came about and looks at Samsung’s strategy and how it was superior to most of its competitors. It analyses Samsung’s success from the conceptual lens of “core competency”. It tries to draw strategy lessons from Samsung’s success for the consumer tech industry.

Keywords: Samsung, smartphones, strategy, technology, core competency



Orientation Towards Finances: Testing of ORTOFIN Scale in the Indian Context

M. M. Sulphey, S. Nisa

Orientation towards finances is an individual behavioral disposition characterized by personal interests and skills related to managing one’s own finances effectively. Loix et al. (2005) employing rigorous procedures developed and validated a scale to find out the financial orientation, and termed it ‘Orientation Towards Finances’ (ORTOFIN). The scale developed and validated in the European context has been used in a number of countries. However, no study has so far tested its applicability in the Indian context. The present study replicated most of the analyses done in developing the ORTOFIN Scale, in the Indian context. The result of Factor analysis presented clear replications of the original work confirming the universal applicability of the scale. The study also established that there was no significant difference in the variables with respect to marital status. However, significant difference existed between males and females in one variable – Personal Financial Planning.

Keywords: orientation towards finance, ORTOFIN, behavioral finance



Sony PlayStation Strategies in the Video Market

J. G. Vargas-Hernández, M. O. Velasco-Guzmán

Given the increasing demand for video games on the market, the struggle between hardware or video game consoles is inevitable. Nowadays Sony PlayStation has two main competitors on the world market: Microsoft's Xbox and Nintendo's Wii console. This article addresses the strategies implemented in Sony console videos and show how from a broken according to Nintendo, PlayStation, Sony took to develop their own skills and strategies within the firm. From this show like applies the resource-based theory and dynamic capabilities, and a contribution to the understanding of the process that led PlayStation to the first place position for several generations of consoles.

Keywords: dynamic capabilities, strategy, video-console



Book Review: The Indian Mutual Fund Industry

A. V. Kobylianska, A. G. Goncharuk





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