Corporate finance Essay Example | Topics and Well Written Essays - 1500 words - 1

Corporate finance - Essay Example Business firms generally find difficulty in raising capital for their further expansion.In the case of very big business projects,the founder alone cannot meet the firm’s initial capital requirements.Under such circumstances,companies issue shares of specific value to the general public with intent to raise capital for meeting business operation expenses. Share price refers to the price of a single share that company issues for subscription. While taking decision on share subscription, an investor compares the share price with company’s financial statements. If a company cannot raise an attractive surplus from its operation, it cannot fix a high price for its shares. It is observed that the market stature of a company has a direct impact on its share price. Every firm aims at maximizing its share value by improving profitability. Empirical evidences suggest that share prices may be affected by an array of factors. Share price is mainly categorized into two such as inter nal and external variables. This paper will explore how these factors affect share prices. Internal variables affecting share prices Internal variables are the strengths or weaknesses of a business which may largely affect the share prices more than any other factor. Profitability, leverage, size, bonus issue, and warrant exercise are the main internal variables that influence the share price to a large extent. They are described below in detail. 1. Profitability Obviously, the ultimate objective of every business is wealth maximization. Therefore, an investor is always curious about the economical status of the company in which he wishes to invest. A firm’s audited financial statements prepared at the end of the fiscal year give vital information to investors and other shareholders. An investor mainly considers the company’s total revenue, expenses, and profitability so as to assess its current market position. For making an investment decision, an investor may give h igh emphasis on the firm’s Earning Per Share (EPS) that represents rate of return on a share at the end of the financial year. In other words, when the EPS rises, investors are more likely to invest with the company. 2. Leverage Leverage is a business term that indicates the amount of money borrowed to finance the purchase of assets; and it can be determined by calculating Debt-to-equity ratio. Although leverage is beneficial for the company to promote growth through the purchase of assets, a high leverage would raise high risks including the drop of share price. An investor would never like to purchase the assets of a company that owes huge debts to other entities because investors are less likely to support a risky venture. Hence, a low leverage may benefit the business to maximize its share price. For instance, as Chatterjee (2011) reports, the Reliance Communications have recently cut down share price target for December by 49 percent to 82 rupees mainly as a result of hi gh leverage. 3. Size Fernando, Gatchev, and Spindt argues that the size of the firm can directly influence the share price; an increase in firm’ size causes a proportional increase in share price and vice versa. Generally, it is believed that huge firms would have abundant potential financial sources that can be effectively employed to meet different business needs. Similarly, large sized firms would probably maintain many potential market segments which would assist the firm to confront with difficulties in times of business contingencies. Moreover, large firms would be well established in the market and therefore, they can keep stable market demand to some extent regardless of the changes in market trends. These factors offer a minimum profit guarantee to investors even if the business faces unexpected losses. Schutts points out that Wal-Mart’s large size has assisted the firm maintain its share price steadily. 4. Bonus issue Bonus issue indicates the act of issuing additional shares to the firm’

Sport Psychology Essay Example | Topics and Well Written Essays - 2250 words

Sport Psychology - Essay Example This could turn into a motivating environment and drive better performance, provided the person in confident and good in what he or she is doing. However, if the person is not sure of his or her abilities, it could also very well turn out to be an anti-climax as the presence of people would worsen the level of confidence and eventually degenerate the performance of the individual. The concept of social facilitation becomes all the more important when it comes to sports. Since, every sport in the world has an audience, it is imperative that the athlete should be mentally geared to face the audience. In the highly competitive world of mind games, psychological toughness is of Herculean importance. Confidence is a factor that separates the great from the good and it comes with practice and self-belief. Hence, a good performer can be made to do perform better by introducing motivational factors like cheerleaders. If a person is lacking in skill, it can always be made up through hard work and training. However, if this lag is coupled with the pressure of performing under an audience, it will only make things worse (Watt & Ramakers, 2003). Hence, such an individual needs to practice alone at first, in the absence of an audience to boost up confidence levels and to instill faith in his or her own abilities. The next step would be to mentally train and prepare to cope with the pressure of playing in the presence of an audience. A person lacking mental grit needs to put it a lot of effort to face his or her worst fear which is more often than not, failure. If one can overcome this fear, half the battle is won. This process of mentally tuning up would also involve external as well as internal stimuli. The role of external stimulus is usually played by the coach and self-motivation does the rest of the job. A t-test was conducted to understand this phenomenon of social facilitation. A t-test is usually performed to compare and analyse the performance results of two groups. A group of six individuals, comprising of both men and women were asked to participate in an event. The first set of readings was taken with all participants competing alone as individuals. Then, they were made to participate together as a team. The results obtained from this exercise were also tabulated. A rather interesting trend was observed throughout the course of this test. It was observed that all of them took more time to finish the event when they were co-acting. This could be directly inferred from the values of mean and standard deviation in both cases. The mean time while the group was co-acting was 231 seconds compared to a mere 98.6 seconds in the case of individual competition. The standard deviation figures too indicated a similar trend. Usually, standard deviation is used to determine the degree of va riation. In the case of individual competition, the standard deviation was 23.8 and it was 120.6 while the participants were co-acting. This gives a clear indication of social facilitation playing a strong impact on all the individuals present in the group. All the participants performed better when they were competing as individuals. However, their performance was found to deteriorate when they were co

Victorian Decade of Crisis: An Overview

Victorian Decade of Crisis: An Overview Why have the 1880s been viewed by historians as a decade of crisis for London? Great city of the midnight sun, Whose day begins when day is done.[1] The late Victorian era was a time of many developments, and much progress. After a number of short trade depressions in the early years of Queen Victoria’s reign, the situation stabilised and then increased from the mid-1840s. This was largely due to the massive spread of railways at the time. This period of increasing industry was complemented by the so-called ‘Golden Age’ of High Farming; when agriculture enjoyed similar successes, despite the repeal of the corn laws in 1846. This Golden Age was followed, however, by a period of prolonged depression which spanned over twenty years from the early 1870s until the mid 1890s. It was only in 1914, with the outbreak of the Great War, that the relative decline of Britain as an industrial power became apparent. Why were the 1880s such years of crisis, and what was the extent of this crisis? Although the decade falls in what is usually described as the Great Depression, export and production figures for the period suggest the industrial situation was not as bad as some believe. The steel industry continued to expand, as did the coal and cotton textiles industries. The amount of cotton cloth exported was 3573 million yards between 1870-79, while between 1880-89, this figure increased 4675 million yards.[2] As Burnett states, â€Å"by the decade of the 1880s, it was clear that the growth both of the cotton and woollen industries had fallen off sharply†¦Ã¢â‚¬ [3] There were, however, other aspects of the period which warranted the description more. Prices were falling, for example, which meant the value of exports was reduced, thereby reducing profits. Unemployment in the decade averaged 5.4% compared to 4.6% in the twenty years before 1874. In 1886, the figure rose for that year to 10%.[4] The cause of the depression has been attributed to the reduction in railway building which started. In each five year period between 1845 and 1870, an average of 2000 miles of new track were laid, while between 1885 and 1900, this figure fell to 750 miles.[5] This affected one of the major growth industries of the earlier period; the steel industry, as demand fell. It was also during this period that the competition from other countries began to be noticed. This came most acutely from Germany and the USA. German coal production rose from 34 million tons in 1870 to 59 million tons in 1880, while US coal production rose to 64.9 million tons in the same period. While British production was still ahead at 149 million tons, competition was growing. The case was similar in pig-iron and steel production.[6] In the US, machines such as the typewriter and the sewing machine were being developed. Having been the first nation to industrialise, much of the machinery and equipment used in British industry was becoming outdated and surpassed by technology which the newly industrialising nations were utilising. It was in this period, and during the 1880s in particular, that the extent of this relative decline began to be noticed, and this was a major contributory factor to the decade being seen more generally as one of crisis. As Harris points out, â€Å"one of the striking facts that emerges from the Census of 1871 is that, a hundred years after the onset of the Industrial Revolution, the topography of Britain was still in many ways that of a predominantly rural country.†[7] Britain, as well as falling behind in technological developments, was being pushed out of her traditional markets by these newly industrialising nations. The US could increasingly meet her own needs, while the European markets were being flooded with cheaper, often better quality goods from other countries. Belgium, for example, developed cheaper, better quality methods of glass production, while the Germans were able to introduce Siemens furnaces for steel production. While these other nations increasingly introduced tariff systems to protect their domestic markets, this was anathema to the British laissez faire approach. Consequently, the British markets remained unprotected and were flooded with imported goods. Another industrial problem in Britain during the period was the failure of British management systems. These, too, were becoming outdated and surpassed by competitors’ newly-developed systems. Often based around the family firm, management positions were often filled by familial connection rather than ability. Coupled with this was the lack of investment in new machinery and industrial apparatus which in turn contributed to the lack of competitiveness in British industry generally. There was a general lack of initiative and failure to get involved in the newly developing industries such as the petro-chemical and electrical engineering industries, which would soon come to dominate industry. During the 1880s, imports of wheat and flour into the United Kingdom increased to 70,282 thousand cwt from just 50,406 thousand cwt the previous decade.[8] These imports often came from the US, where the vast prairies were developed by trans-continental railway. The imports were helped by the development of large merchant steamships. The cost of imports fell dramatically, making it much more viable to import larger quantities of foodstuffs. The average annual wheat price fell from 47.67 shillings per quarter between 1875-9 to just 31.58 shillings per quarter in 1885-9.[9] An important development in the 1880s was the introduction of the refrigeration ship, which enabled meat products to be imported from countries such as Australia, New Zealand and Argentina.[10] Despite this gloomy economic and industrial situation which was afflicting the country generally, London itself was not amongst the worst hit area. The flux of imports affected the agricultural sector, not many of whom were to be found in the metropolis; particularly those who relied on wheat and cereal growing. Again, the refusal of the government to introduce a tariff system to protect the domestic market did nothing to help the situation. A benefit of the depression, particularly for those not dependent on agriculture, was that it meant food was cheaper. This in turn meant that those who were employed actually enjoyed a higher standard of living. In 1888, the Conservative government set up the London County Council. This was a response to the political activism of the great reformers of the decade, but it marked a positive step in the battle against poverty and want. It involved direct election of 118 councillors, which allowed public opinion to have a say. Although struggles for power even within this new body continued, it moved the battle to political ground. This development was complemented in the 1880s by the growth and development of more organised trades unions in London. This attempt to organise labour often involved the transport workers, and therefore focused on London. While this was undoubtedly a positive development, giving many workers, for the first time, an authoritative voice bout their conditions, it can be said that this led to increased struggle and clashing between workers and employers, which contributed to the idea of the city being in crisis. The most spectacular manifestation of this was the riots in Trafalgar Square in 1886 and 1887, which although they involved the unemployed rather than unionised workers, highlighted the animosity felt towards the privileged and propertied people of London. This culminated in ‘Bloody Sunday’ on 13 November 1887. Mackail described the events. â€Å"No one who ever saw it will ever forget the strange and indeed terrible sight of that grey winter day, the vast sombre-coloured crowd, the brief but fiery struggle at the corner of the Strand, and the river of steel and scarlet that moved slowly through the dusky swaying masses when two squadrons of the Life Guards were summoned up from Whitehall.†[11] Another positive development for London during the period, which counters the impression of London as a city in crisis during this period, was the effect on the great city of the railways and steamships. Having already assisted the growth and development of the empire, by the 1880s, they had considerably magnified the importance of London itself. As well as being a great international seaport, the increasing rail network focused on London also. In 1880, the total value of London’s trade was greater than that of its nearest rival, Liverpool.[12] London also became a symbol of free trade, as it was the centre of the great importing warehouses. This, of course, was not as positive as it may have seemed, given the negative effects on the rest of the country of the massive growth in imports during the period. The flip-side of these developments in transport was the social cost. People often had to be turned out of their homes in order to build the new terminals. Industrial conditio ns amongst the workers were less than adequate also. This was most marked in 1889, the year of the great dock strike at the London docks, as the workers struggled to achieve the ‘dockers’ tanner’. This event can be seen to encapsulate much of the perception about the decade as a whole; one of struggle and conflict between workers and their managers. Urbanisation was a major factor during the period. Much of this was concentrated in London and Middlesex (as well as Lancashire, Durham, Staffordshire, Warwickshire, west-central and parts of south Wales). Increasing ground rents in the period were beginning to drive many of the middle and upper classes to the city limits. The term ‘Greater London’ was used for the first time in the 1881 Census; an area that was growing the most rapidly.[13] During the 1870s, rural population experienced an absolute decline for the first time since records began while urban population increased by 75% in some cases. In response to this there was a building boom in London during the 1880s. By the middle of the next decade, in London and Middlesex, nearly half of the population had been born elsewhere.[14] While this massive urban growth was positive for the city in many ways, it also meant more crowding, insufficient housing, increasing rents and costs and the dangers of disease that acco mpany such conditions. Harris discusses the fall in fertility during the 1880s. Commentators at the time put it down to the strain of urban living and the modern education system â€Å"eroding human procreative powers†.[15] This fall in the birth rate concerned many contemporaries at the time, and it has been debated at length by historians ever since. It is interesting that it coincided with the Great Depression, and another, later drop coincided with a fall in real wages in 1900. This general atmosphere of depression, economic an social, was perhaps at its most acute during the 1880s, and although it actually spanned over twenty years, it is this decade in particular that is remembered as a decade of crisis. During the 1880s, Charles Booth began his great survey of the London poor entitled London Life and Labour. this would become an important work in drawing attention to the want of the working class in the capital. It marked a realisation, or appreciation, of what was becoming a serious problem of poverty and low living. In one passage, he describes the typical working woman (who was often only partly-employed) as â€Å"generally elderly, infirm, penniless and a widow †¦ she is nervous and timid, and takes work at whatever price it may be offered to her.†[16] A major reason why the decade is seen as one of crisis, then, is that it was one of the earliest times that the poverty and dire situation of the working classes in London was forced to the attention of the wider public. Poverty was the â€Å"biggest single fact of contemporary existence.†[17] Poverty, poor sanitation and over-crowding were nothing new to the 1880s, but with Booth’s work, and the later wo rk of Rowntree, the situation was increasingly recognised. Booth’s work was followed quickly by other similar studies such as Andrew Mearn’s The Bitter Cry of Outcast London (1883) and General Booth’s In Darkest England and the Way Out (1890). In 1887, Henry Hyndman published a pamphlet entitled A Commune for Socialism which was a plea for municipal socialism. This was a cry that was increasingly being taken up, as the importance of local government as a means of social reform was being recognised. Joseph Chamberlain was one of the members of the government of the day to realise this importance, and indeed introduce it into the national debate. He spoke about this in 1885. â€Å"Local government is near the people. Local government will bring you into contact with the masses. By its means you will be able to increase their comforts, to secure their health, to multiply the luxuries which they may enjoy †¦ to lessen the inequalities of our social system, and the raise the standard of all classes in the community.†[18] It was, then, increasingly brought into the national debate, and this bears large responsibility for the impression of the 1880s being a decade of crisis. This was, however, a positive step, as it l ed to increased activism and political developments favouring the working classes. In Victorian Cities, Briggs describes London as ‘the World City’. This captures how London was seen, both domestically and abroad, throughout much of the Victorian era. By the closing decades of the nineteenth century, then, why was the greatest city in the world experiencing a crisis? During the 1880s, the Quarterly Review described the â€Å"complete separation of the residences of the different classes of the community.†[19] This was referring to the contrast between the East End and the West End of London, and the effective segregation of the population of London into rich areas and poor areas. It has been said that the residents of each respective part of London knew and cared little about the other area. In another work important in stimulating the better-off into action called Tales of Mean Streets Arthur Morrison asked â€Å"who knows the East End?† The description that followed in answer reflected the common perception of the situation in the East End: â€Å"an evil plexus of slums that hide human creeping things; where filthy men and women live on penn’orths of gin, where collars and clean shirts are decencies unknown, where every citizen wears a black eye, and none combs his hair.†[20] The situation in London, then, was not homogenous throughout the great city. There were pockets of serious depravity, while other areas enjoyed great wealth and luxury. It was this juxtaposition of the East End with the bright lights of the West End that highlighted the dire situation in the East End, and did more than anything to contribute to the impression of London as a city in crisis during the 1880s. The stark difference was that although poverty was present in parts of the West End, for example around Belgrave Square, it was largely hidden from view, while in the East End it was clearly visible for those who cared to see it. During the 1880s, however, as London was increasingly being seen as a world city, as the capital of the greatest empire in the world, it was the ostentatious and dazzling aspect of the city’s situation which was emphasised. Here, then, is an interesting paradox. Although the 1880s saw some of the early social commentators and reformers recognise and draw attention to the ills of the poorer classes in London (as well as other industrial cities of England), to many London remained one of the greatest cities in the world. In 1883, for example, an Australian writer described London in New York’s Century Magazine. â€Å"We may talk of our Western empire and our admirable ports, of our growth and our growing wealth; but here is, and will remain for generations, the centre of the commercial and political world, the focus of intellectual activity and the mint of thought.†[21] The 1880s were a decade of great struggle in London. There was much poverty and want, with disease rife, and sanitation poor. The dire situation did not affect the whole of the city, however, and it was the wealth and opulence of the West End which highlighted how bad the situation elsewhere had become. It was also a decade of increasing social comment and investigation. The middle classes were, for the first time, taking an interest in their less fortunate neighbours. The decade was not the first in which London was in crisis; it was simply one of the earliest that the situation was recognised. BIBLIOGRAPHY Baycroft, T., Nationalism in Europe 1789 1945 (Cambridge, 1998) Briggs, A., Victorian Cities (London, 1968) Burnett, J., Useful Toil (London and New York, 1994) English, R., Kenny, M. (Eds), Rethinking British Decline (New York, 2000) Feldman, D., Englishmen and Jews (New Haven and London, 1994) Fraser, H., ‘Municipal Socialism and Social Policy’, in Morris, R.J., and Rodger, R. (Eds), The Victorian City (London and New York 1993) Harris, J., Private Lives, Public Spirit: Britain 1870 1914 (Oxford, 1993) Lowe, N., Mastering Modern British History (London, 1998) Mathias, P., The First Industrial Nation (London, 1969) Morris, R.J., Rodger, R. (Eds), The Victorian City (London and New York, 1993) Pugh, M., State and Society (2nd edition) (London, 1999) Taylor, A.J.P., The Struggle for Mastery in Europe (Oxford, 1971) Footnotes [1] Richard le Gallienne (1895), quoted in Briggs, A., Victorian Cities (London, 1968), p311 [2] Mathias, P., The First Industrial Nation (London, 1969), p468 [3] Burnett, J., Useful Toil (London and New York, 1994), p15 [4] Lowe, N., Mastering Modern British History (London, 1998), p216 [5] Ibid, p216 [6] Taylor, A.J.P., The Struggle for Mastery in Europe (Oxford, 1971), ppxxix xxx [7] Harris, J., Private Lives, Public Spirit: Britain 1870 1914 (Oxford, 1993), p41 [8] Mathias, pp472-5 [9] Ibid [10] Lowe, p221 [11] Quoted in Briggs, p329 [12] Briggs, p318 [13] Ibid, p312 [14] Harris, pp41 44 [15] Ibid, p47 [16] Quoted in Burnett, p35 [17] Briggs, p313 [18] Quoted in Fraser, H., ‘Municipal Socialism and Social Policy’, in Morris, R.J., and Rodger, R. (Eds), The Victorian City (London and New York 1993), p263 [19] Quoted in Briggs, p314 [20] Quoted ibid, p315 [21] Hogan, J.F., Century Magazine (1883), quoted in Briggs, p317

Essay --

The Pura Principle is one of the most interesting stories written by Junot Diaz. The narrator of the story is Yunior a character that Junot had used in earlier stories. The story is also full of potent language further makes it quite interesting to read. Analysis of the plot it is also evident that the story also flows nicely especially due to the presence of several interesting imagery. Upon reading the story one of the issues that come to the mind of every reader is the question of what was main theme that the writer of the story wanted to convey. In this essay I argue that the writer of the story mainly wanted to bring out theme of conflict that exits in the modern Americans family setting. This essay therefore presents a strong view that the story bring out theme of peace and conflict that every family is subjected to. Right of from the beginning of the story the author first tries to describe the conflict that existed between Yunior and his elder brother Rafa. The author states that Yunior started drinking while he was still in high school. Whenever Rafa came home he does not have time to talk to his brother since he mostly spends time partying and drinking with his friends. Rafa even goes a step further where he comes home with women despite the objection by his mother of bringing women home without her approval. Rafa assumes that whatever advice he is given by his mother he can ignore with no consequences since at times he even goes ahead to spend time with his old girlfriend knowing very well that she is married. In most families peace is assumed to exist whenever the family members are able to sit and enjoy time together. This type of peace is rarely seen in this story since in most cases no one seems to care what th... ...ossible to conclude that the author mainly wanted to show some of the conflicts that exist in the contemporary society. Family conflict is depicted in the story as inevitable but the critical issue is how one deals with such issues. Others can also argue that the story does not have a specific theme since it only consist of a plot and voice of Yunior who is the main character. Lack of specific theme is also related to the fact that the story seems to be too simple. The story can also be seen to lack any specific theme since the author of the story makes several grammatical mistakes in mixing Spanish language with English. In addition the author also incorporates several unprofessional languages in the story that further interfere with any plot of the story. The story can also be seen as to bring out feminist related issues where women are demonstrated as powerless.

Divorce Essay

The Beginning of the End Growing up I always believed divorce was the worst mistake a couple could make. Now that I am older I now have a different view on divorce. My parents divorced when I was seventeen years old, and since going through this experience I view divorce differently. Although most people think of divorce as a negative thing, I think sometimes it turns out to be the best decision for everyone involved. When I was a little girl all I would hear from people is how divorce was wrong and couples should always work out their differences.My parents would always assure me that â€Å"no matter how much we fight, we will never get a divorce†. As the years went on things started changing in my parent’s relationship and we saw their marriage starting to dissolve. My sister and I could see that they were no longer the happily married couple they had been for the past 25 years. Eventually my father’s personality started to change, and he no longer was interest ed in family activities or spending quality time with my sister and I. He was not the dad we had known our whole lives. After realizing his behavioral changes he finally went to go see a professional.After a few sessions with the doctor and many counseling sessions with my mom, my dad was diagnosed with depression. We had already seen first hand what depression could do to a marriage, as his parents had gotten divorced after my dad’s mother was diagnosed with depression. As time went by I saw my father’s depression taking a toll on my mother’s happiness and her daily attitude. I wanted both of my parents to be happy, but was that too much to ask of them to stay together? I knew my father had changed and was not the same man my mom had fallen in love with 25 years earlier.My dad was no longer the fun, ambitious, adventurous guy my mom had met back in college. Instead my dad was bitter, had frequent outburst, and a constant negative outlook on life. When my parent s finally reached the decision to divorce my family knew it was going to be a tough road ahead. Although my sister and I were upset we knew it was for the best, it was just going to take some adjusting. Luckily the divorce was very civil and my parents are still able to maintain a peaceful relationship for the sake of my sister and I. We both know my parents love us and that the divorce had nothing to do with anything we had done.My dad has since gotten help and my sister and I visit him often. He is getting back to the fun, loving, kind man we all knew him to be. Unfortunately, my dad waited to late to make changes in his life to save his marriage. Today, my parents are both in healthy relationships with other people. My sister and I enjoy spending time with both families and feel blessed these new people are in our lives. I had a very negative view on marriage when my parents told me they were divorcing, but since that time I feel not everyone gets divorced and marriage takes a lo t of work.Although the divorce was hard to swallow, it is good to see both of my parents happy again. Now that my parent’s divorce is final everyone seems to be more peaceful and happy with their lives. I am not saying divorce is the right decision for everyone, but I am saying depending on the situation sometimes it is the best choice. I have learned through my experience not to judge others that are divorced because everyone’s situation is different. I feel my parents made the right decision for our family and I am a stronger, and happier person as a result.

Establishing a Secured Atm Banking System

Establishing a Secured ATM Banking System Contents 1. Abstract 2. Introduction 3. Executive Summary 4. Mission 5. Company Background 6. Statement of the Problem 1. Problem Statement 2. Problem Significant 7. Project Objective 8. Limitation of the Project 9. Methodology 10. Analysis of the Project 11. Scope of the Statement 12. Proposed Improvement 13. Expected Output 14. Recommendation 15. Acknowledgment Abstract The aim of this study is to investigate risk management, security and controls in the Context of Automated teller machines (ATMs).In doing so, it adopts a non-technical Approach by investigating the interrelationship and effect of risk management and controls In setting Automated Teller Machine security goals. The literature explores and discusses The risk management and different controls of ATMs. To reduce the risk of fraudulent Activity, several controls can be integrated into the ATM processing environment. However, the controls should not be considered a cure-all. Keywo rds: ATMs, data security, risk, fraud, electronic banking, and controls.Introduction This paper examines the effects of incompatibility in network industries. In a network industry such as telecommunications, the internet, or automatic teller machines (ATMs) in the banking industry,firms are technologically interconnected. This interconnection can lead to more complicated pricing structures than those observed in traditional industries, since a consumer may receive direct or indirect services both from his chosen firm and its rivals.While interconnection increases the size of the network available to consumers, in industries such as the banking industry, the introduction of price discrimination between affiliated and unaffiliated consumers reintroduces firm-level network economies by reducing compatibility within the shared network. This paper measures the impact of this incompatibility and finds significant effects on competition in the deposit market, welfare, and investment. It a lso briefly considers an alternative institutional structure in which provision of ATM and deposit services is separated.In the banking industry, the customers of one bank can use their ATM cards at ATMs owned byother banks, but the ATM owner may charge a fee called a surcharge. This can be interpreted aspartial incompatibility between components of a system comprised of ATM cards (bank affiliation)and ATMs. Analogous to the strong complementary relationships between CPUs and peripheralsor VCRs and video tapes, ATM cards and ATMs form complementary components of a system thatallows consumers to perform transactions on their bank accounts.Consumers can choose variouscombinations of these complementary goods, but the compatibility is only partial since there is acost associated with use of a foreign ATM, that is, an ATM not owned by the consumer’s bank. There is a sizeable theoretical literature on compatibility in industries with network externalitiesor complementary component s. This literature predicts that incentives for compatibility differacross firms and will be smaller for firms with larger networks, since these firms lose the competitive advantage their network size confers under incompatibility.The effects on consumer surplus should differ depending on the distribution of consumer characteristics and the new price equilibrium that is reached. In turn, the effects of compatibility on price competition depend on a number of factors. In the banking industry, while partial incompatibility achieved through surcharging should theoretically soften price competition in the deposit market by making an increase in deposit. This paper will focus on the types of ATM transactions that can be performed on any ATM within the shared network such as inquiries and cash withdrawals.Executive Summary ATM An automated teller machine (also known as an ATM or Cash Machine), is a computerized device that provides the customers of a financial institution with the ability to perform financial transactions without the need for a human clerk or bank teller. Crime at ATM’s has become a nationwide issue that faces not only customers, but also bank Operators. Security measures at banks can play a critical, contributory role in preventing attacks on customers.These measures are of paramount importance when considering vulnerabilities and causation in civil litigation and banks must meet certain standards in order to ensure a safe and secure banking environment for their customers. The Automated Teller machine is a terminal provided by bank or other financial institutions which enables the customer to withdraw cash to make a balance enquiry, to order a statement, to make a money transfer, or deposit cash. The ATMs are basically self-service banking terminals and are aimed at providing fast and convenient service to customers.Some of the new generations of ATMs are able to cash a check to the penny, dispense Traveller’scheques and postage stam ps, perform stock transfers, print discount coupons, issue phonecards, and even sell concert tickets. Customers are grateful for these ATM features but they are alsovery concerned with ATM crime and safety. Mission Key to Success Company Background 1. Statement of the Problems/Problem Definition/ Automatic Teller Machines (ATM) indicates the development of Information Technology in Banking sector.Two types of ATMs need to be addressed, one of which is the branch ATM, The other being the out of branch ATM. The branches will take care of the ATM located in Their respective branches, while the out of branch ATMs such as those located in department Store will be taken care by cash centers. Each cash center has ATMs under its responsibility. At VIT there are three ATMs out of which two are out of branch ATM() and one is branch ATM(). The major problem faced by these ATMs are the long queue of customers at the peak hours and then at the off peak hours the lack of customer entry.The number of customer are so large that many a times customer waits for more than half an hour to get his turn but at nights the ATMs remain idle that there are no customers to serve . Depending on the current capacity of each ATM, many alternative decisions can be made. Now the work process decision is made by operators. Thus,the problem of ATM facility is significant. In this study, methodology â€Å"Simulating ATMs† is proposed in order to maximize efficiency Of banks to improve their customer’s service and increasing long term relationship with them And also to reduce the congestion at the ATM centre at peak hours.The process will show How much time a customer spends and give suggestion whether a new ATM is required or With the same resources the performance can be improved. This research will support the Banks in terms of decisionmakingfor reducing the waiting time of customers, by solving a Simulation model with the help of queuing theory. The technique of simulation has long been used by the designers and analysis in the physical Sciences and it promises to become an important tool for tackling the complicated problems Of managerial decision making.It is actually imitation of reality and when it is being put into Mathematical form it is called simulation. Generally, the main objective of simulation is to Minimize the managerial problem in terms of decision making and hence helps in reaching Solution with at most accuracy. Also it is comparatively free from mathematical solution, Hence can be easily understood by the operating personal and nontechnical managers. On the other hand queuing model is used to overcome the congestion of the traffic? This traffic Can be of any form.This model mainly used in situation where customers are involved, hence When it is being coupled with simulation it becomes very much conducive to get solution to Solve the problem related to customers. Therefore, these two models are used to understand The situation related to ATM waiting line and to find some alternative to overcome this Problem by suggesting certain alternatives. Automated Teller Machines (ATMs) provide banking services such as withdrawals, deposits, and transfers on a 24 hrs with 7days basis. Due to their convenience they are nowuniversal and are used by a diverse set of users located around the world.Despite this success, however, ATMs still suffer from a variety of problems. Since ATMs are used for banking, security is paramount. Personal banking information is highly sensitive and users are vulnerable while using ATMs. Keypads in particular have been exploited by criminals who have installed small cameras or touch-sensitive overlays, or in some cases have simply observed users as they have keyed in their pins. The physical security of users is also important. ATMs are open late at night but often have limited security.Users may feel anxiety and, in those cases, it is best that they complete their ATM operations as quickly as possibl e. In addition to security concerns, there are a number of known usability issues with current ATMs. For example, users may not know which card they have entered into the machine, and accidental key presses may trigger unintended operations. Similarly, ATM interfaces are often loosely-coupled with underlying functions and allow the users to perform illegal operations, only informing them after the fact of the inability of the system to carry out a given task.A good solution to both the usability and security issues will require further exploration of how ATMs operate. Ultimately, such a solution will include a reformulation of certain key ATM functions and novel technologies such as touch screens and web-based interfaces. 1. 1Problem Statement In most of the ATMs the major problem is waiting of customers in the queue for more Duration. Mainly the objective of ATM for bank is to keep away the customers from coming To bank and make the process easy for them to avoid the basic procedur e they do in bank.But As stated the problem which most ATM face is the long queue in front, but then when the Problem is only for a short while as rest of the time the ATM remains idle means adding to The operating cost. The problem is to determine whether only one machine is required to Fulfill the need or two more machines needed to be installed to give comfort to customer Which is really of short period of time. 1. 2 Problem Significance The cost of the installing an ATM machine accounts for a sizeable part of the total operating Cost of a company.Adding to it is cost of extra security guard who is needed to be placed There. But the customer satisfaction point of it is necessary to incur these expenses as Retaining them is more important, hence these cost are overshadowed by this fact. This Research will provide a robust problem solving technique for the realworld? Make a decision Related to reducing the ATM queuing problem to reduce operating cost. †¢Problem Objective The o verall objective of the research is to develop a model to reduce the waiting time of Customers and the total cost related to ATM installation. Problem Constraints In this research, the researcher has focused on the Problem of waiting of customer in ATMs For long to undergo a simple transaction with the available ATM machine, also to know Whether another machine is required to reduce the traffic at the centers by keeping in mind The cost incurred in installing. Methodology Introduction to simulation and queuing It is the imitation of reality like laboratories in which numbers of experiments are performedon simulated models to determine the behavior of real system in true environments.The example cited above is of simulating the reality in the physical form, and are referred toas analogue simulation. For the complex and intricate problem of managerial decision Making, the analogue simulation may not be practicable, and actual experimentation with thesystem may not be uneconomical. Und er such circumstances, the complex system is Formulated into a mathematical model for which a computer programme is developed, and The problem is solved by using high speed electronic computer, and hence it is named as System simulation. Queuing theory has been applied to a variety of business situations.All situations are relatedto customer involvement. Generally, the customer expects a certain level of service, whereasthe firm provides service facility and tries to keep the costs minimum while proving therequired service. This widely used in manufacturing units. Here it helps in reducing theoverhead charges and the overall cost of manufacturing. Also used to know is the unit arrive, at regular or irregular intervals of time at a given point called the service point. General Analysis of the Project ATMs are used by all modern commercial banks and are found in cities around the world.Modern ATMs already address many human interaction concerns, but still suffer from a number of usabi lity and other issues. The following are seven important aspects to consider when attempting improving ATM interfaces: Security Issue ATMs act as electronic tellers, and security is always an important concern for users. Major security issues are already addressed in the modern ATM design. A password, or PIN number, is used to protect the information. After decades of use, ATMs have proven the effectiveness of this security policy.However, this approach may not be sufficient in the future. Mugging and PIN theft should be addressed in a new ATM system. Mature biometric technology may be a good candidate to provide additional security. Besides password protection, modern ATMs also include ‘card eating’ features to provide customers with more security. However, instead of increasing customer security, this feature can in fact cause problems for authorized users due to misunderstanding or carelessness. This feature should be reviewed as part of a user-centered design proces s. FunctionalityATMs handle as many traditional teller operations as possible. Traditional ATMs implement most basic daily banking functions, such as deposit, withdrawals and balance checking. These functions are designed based on the performance limitations of computing and networking, which have changed rapidly over the course of the last few years. These limited functions may not be satisfactory by modern standards. The next-generation ATM should support the following features if possible: †¢ Money transfer: transfer money from one bank account to another person’s bank account. Bill Payment: automatically pay bills. Although a valid feature is provided in internet banking right now, ideally ATMs would still provide these functions for users without internet access. †¢ Other Electronic Finance Tools: Good examples could be electronic bank notes or electronic bank travel cheques. Usability Unlike some other electronic devices, ATMs should be useful to a wide-range of users and those users should be able to use the system with limited or no assistance. This aspect is critical to the new ATM design.Although these issues are already taken into consideration in the current ATM designs, evaluation may reveal that there is room for improvement in current systems. Theoretically, it is also possible that there is no perfect design once we review the usability requirements. We may have to provide a compromised solution to suit the majority. The following are some typical user stories for review: †¢ ATMs currently allow users to insert different cards but do not display visual cues to identify which card was inserted. A displayed image would provide good feedback to prohibit accidental operations using the wrong card. The current key layouts, especially the function keys, are slightly different between different ATMs. A new standard high-resolution touch-screen would be preferable. †¢ Not all current ATMs can support multiple-languages. Consi dering growing international trade and communication, multiple language support would be a very important feature. †¢ The current deposit and withdrawal functions also need to be improved. For example, the standard process for putting multiple cheques into ATMs is confusing, and the ATM withdrawal function does not support bill selection based on the customer’s request. The new ATM should allow the user to easily access money across the world. Efficiency ATMs must be both easy to use and fast. The more time a user spends at an ATM, the more inconvenienced the user feels. Wait times also increase for other users. Clearly, this is an important issue to consider when designing an ATM system. Accessibility As ATMs are physical machines, their design must take accessibility concerns into account. Some good accessibility features can be found in current ATM design. For example, the ATM keyboard includes Braille support for the blind. Current ATM design does not do a good job o f protecting people from others peeking from behind. †¢ The fixed height of ATMs can be inconvenient for some users. Threat & Affect ATMs should be attractive. Potentially, good looking ATMs could attract new users and make existing users more comfortable. For example, relaxing background music could relieve user anxiety during complex operations. There are three basic types of ATM attacks: †¢ Attempts to steal a customer‘s bank card information; †¢ Computer and Network attacks against ATM‘s to gather bank card information; †¢ Physical attacks against the ATM.THEFT OF CUSTOMER‘S BANK CARD INFORMATION †¢Card Skimming †¢Fake ATM machines †¢Card Trapping/Card Swapping †¢Distraction theft or ‘manual’ skimming †¢Shoulder Surfing †¢Leaving transaction ‘Live’ †¢Cash trapping COMPUTER AND NETWORK ATTACKS †¢Network attacks against ATMs †¢Viruses and malicious software †¢Phishing †¢PIN cash-out attacks †¢Utilizing a Fake PIN pad overlay †¢PIN Interception PHYSICAL ATM ATTACKS †¢Ram Raid Attacks †¢Theft of ATMs †¢Smash and Grab of ATMs †¢Safe cutting/Safe Breaking †¢Explosive Attacks Scope of the Project We should evaluate whether or not the ATM is helping to extend banking services.By mixing the web/mobile preauthorization transaction service with the traditional 24 hours with 7 days ATM service, service time can be improved and wait times reduced. Proposed Improvements Our initial meeting yielded many ideas for new ATM technologies that have the potential to improve user experience. We considered mobile phone interfaces, voice interfaces, refinements of physical button interfaces, high resolution touch screen interfaces, biometric identification techniques (finger print or retinal scan), and a web interface for pre-specifying ATM transactions.After a brief discussion of each of these ideas, we decided to talk in depth about the final three. The use of an advanced high resolution touch screen would not solve any problems in itself. but would allow for a more sophisticated user interface. The potential for increased screen space and detail could help address the need for a more intuitive layout, the issue of restricting input to acceptable dollar amounts, and multi-language support. It might also allow ATMs to perform some actions that are not currently possible such as displaying the customer's preferred name for each account and facilitating transfers to third party accounts.An advanced display could also be designed to restrict the viewing angle so that private information is less visible to malicious onlookers. One final advantage of a high resolution display is that it would allow for much more attention to aesthetics, and as Donald Norman tells us, â€Å"attractive things work better. † The main disadvantage of using a touch screen is that it may confuse users, and providing accessibi lity for the blind is more difficult than in cases where Braille codes can simply be added to keypads.The use of biometrics for identification would yield many benefits. The most obvious benefit of biometric technology is that it would increase the security of bank accounts, as a finger print is much harder to steal than a PIN. If the use of a finger print could eliminate the need for an ATM card entirely, it could drastically reduce time spent at the ATM, and it would eliminate the problem of inserting the wrong card. The idea we spent the most time on is a web interface to allow users to pre-specify ATM transactions.The general idea is that the customer can access the bank's website from a PC or mobile phone to input the operations that will be done at the ATM. For example, a user could specify that she wants to withdraw 360 ETB from her chequing account and 220 ETB from her savings account. She also has three cheques to deposit for 250. 35 ETB, 298. 70 ETB, and 329. 11ETB. She wa nts 100 ETB of the deposit to go into her son’s account and the rest to go to her retirement account.When the user arrives at the ATM and identifies herself with a card and PIN or a fingerprint, the machine will display the options she selected earlier and ask if that is still what she wants to do. After selecting â€Å"yes,† she simply inserts the cheques into the machine and removes her cash. While the benefits of this idea may not be immediately apparent, and may not be significant for simple ATM usage, it has the potential to drastically improve the user experience under some circumstances. In the previous example, the user needed to perform many transactions with somewhat nusual amounts of money. If this were to be done at a standard ATM, it could take a very long time to navigate through the interface for each individual transaction. During this time, any number of distractions could occur, including a line of angry customers amassing behind the user or the user' s child suddenly beginning to cry. Under these circumstances, it would be easy for the user to enter an incorrect amount or even to forget one of the transactions completely. However, with the web site, all of the decisions would be made in the comfortable environment of the user's home or office.Besides helping the user to ensure that all transactions are executed properly, this web interface could cut down greatly on lines at ATMs, increasing customer satisfaction and physical security. Another scenario where this could be useful is for outdoor ATMs in bad weather. If the user drives to the ATM and then realizes that being outside would be unpleasant, she could access the web site through her mobile phone to pre set the transactions and minimize time spent outdoors. Such a radical departure from present ATM interactions is certainly not without drawbacks.One of the main issues is that not everybody has web access, especially through their mobile phones. The ATM would definitely ne ed to have a standard user interface in addition to web capabilities. The web site would also introduce security concerns with password attacks and network communication to the ATMs. Hopefully these problems have already been solved in the current implementation of online banking. Finally, as with any UI, poor design could cause this idea to become frustrating and useless. These preliminary ideas have been developed based on initial meetings and brainstorming.Further research and information gathering will lead to the refinement of our proposed system changes, and an iterative design process will allow us to develop a prototype of a highly improved, secure, accessible, and intuitive ATM system and extended web-based interface. Conclusion (Expected Output from the Project) The main purpose of this study is to develop an efficient procedure for ATM queuing Problem, which can be daily used by banks to reduce the waiting time of customers in the System. The queuing characteristics of cu stomers were observed and the researcher compared The process of customer behavior of different ATM services at VIT.It is concluded that the ATM service should introduce in men’s hostel (around ? thstudents strength stay in hostel) Will facilitate pulling more customers towards ATM service. The researcher suggested that the SBI can install a new ATM machine in men’s hostel in spite of high installation cost and thereby reduce the customer cost and service cost for attaining benefit in the long run. This will be helpful for commercial bank to sustain more potential customers in high competitive situations with other private banks.ATM provides financial services to an increasing segment of the population in many countries. Fingerprint scanning, continues to gain acceptance as a reliable identification and verification processes. This paper identifies a model for the modification of existing ATM systems to economically incorporate fingerprint scanning; and, outlines the a dvantages of using such system. It should be noted that the customers perception cannot be generalized as it was highly affected by the tradition/ culture of the user involves. Recommendation for Further StudySeveral aspects of waiting problem for the ATM that remained unsolved in this study will Form interesting topics for further study. The following recommendations are made for Further studies: It is observed that if a person is not well versed with ATM takes more time which is not Considered. Also many customers stand in the queue and leave which can be put into the consideration. †¢ The time the workers take to feed the ATM with currency is not considered. †¢ Out of stock situation can be considered. †¢ On holidays mostly after exams the utility of ATM to be considered.The main limitation of the research due to time constraint it is observed with minimum sample, if sample size would have increased, the result obtained by both in simulation and queuing will coinci de. This study would not consider waiting cost and service cost due to non availability of original information. For future research, this study can be extended by considering the cost factors to find out the best ATM facility. ACKNOWLEDGMENT I wish to acknowledge ________________University and Wegagen Bank, Addis Ababa Ethiopia for their support in providing the various facilities utilized in the presentation of this paper.