Saturday, March 14, 2020
Strategic, PESTEL and Financial Analysis of Accor Hotels The WritePass Journal
Strategic, PESTEL and Financial Analysis of Accor Hotels 1.INTRODUCTION: Strategic, PESTEL and Financial Analysis of Accor Hotels 1.INTRODUCTION:1.1 COMPANY BACKGROUND:1.1a:Accor Hotels:Accor Services:1.2.Strategic partnership:(A group to group partnership strategy):2. History:3. Accor and Global Competitor:4. Accor Operations and Strategy:4.1:centers of Expertise(operations wheel):Purchasing:Construction and Maintenance:Distribution and Hotel website:Technological Support:4.2: Great Innovation by Accor:Corporate sponsorship:4.3. Dynamic Strategic Plan:5. Marketing Sales:6.1 Career Advancement:6.2 New talents perspective:7. Management Finance:7.1 Financial Position and Result:8.SWOT analysis: 9.PEST –Analysis of Accor:10 Accor Ambition:10.1. Accor Spirit:10.2. Competitive Market: 11. Strategic Planning for future Market:11.1: Three pillars of Strategy:11.2: Accor Strategic Vision:12.: Result and Research questions:13. Goals and Implementation:13.1. Conclusions and Recommendation:References:Related 1.INTRODUCTION: 1.1 COMPANY BACKGROUND: Accor of France claims to be the leading Hotel operator in Europe and third largest Hotel group in the world. For more than forty years, Accor has constantly reinvented its core competences to keep pace with the around it, with the goal of providing innovative, high quality products to Hospitality and Service customers. With their highly respected brands, interpersonal relationship and their unique skills to develop and deliver solutions that create wellness. Accor ,the European leader in hospitality and tourism and the global leader in corporate service, operates in nearly 100 countries with 150,000 employees. It offers to its clients nearly 45 years of expertise in two core business: Hotels, with the Sofitel, Pullman, Novoter, Mercure, Suitehotel, All seasons, Ibis, Etap hotel, Adagio, Formule 1, and Motel 6 brands over 4,100 hotels and nearly 500,000 rooms in 90 countries, as well as strategically related activities, such as Thalassa sea spa, Lenotre, CWL. Services to corporate clients and public institution with 33 million people in 40 countries benefit from Accor Services products-meal and food vouchers, people care, rewards and incentives, loyalty programs and expense management. 1.1a:Accor Hotels: Accor operates includes about 15 complementary brands- from luxury to budget, that are recognized and appreciated around the world for their service and quality. Accor operates under six brands in UK-the upscale Sofitel, mid-scale Novotel and Mercure, budget Etap, Formula 1,Motel 6.In USA it operates two budget brands Motel6 and Red Roof Inns. Accor sustainable development also made two more new brand Pullman and All Seasons. These two new brands acquisition is remarkable. The new brand has potentially represent a total of 10,000 rooms by 2010, through franchise contracts. Motel 6, Formula 1,Etap Hotel, Suitehotel, Mercure, and Novotol is running with modern innovation and following corporate strategy. Some development plan is organizing by the operational based. Accor always has taken those steps to target future progress under corporate umbrella. Source:Figure-1 htt://www.accor.com/gb/groupe/activites/hotellereie/activites_hotellerie.asp?flash=N Accor Services: The world leader Accor services constantly creates new high- value added, increasingly personalized services in such areas as a gifts and rewards for employees and government social benefit programme. they involves with wide range of marketing, social and community responsibility in advance. A great innovation part of the organization made life with comfort. that’s why they are increasing and diversifying the services they deliver to companies and public institutions-from food and meal-vouchers to a full range of solutions in such areas as employee incentive, customer loyalty, domestic services, culture and recreation health care and transportation. From highly secure paper vouchers, to electronic payment cards and internet and mobile phone also involves in new technologies, as evidenced by promising future for prepaid electronic services. the world leader in the service voucher market, Accor Services deploys a full range of products and services in 38 countries. All prepaid Accor services products have now been brought under the same †Ticket†umbrella brand with its universally recognized †red ball†symbol. Accor services provides tangible responses to changing lifestyles while helping to improve employee well-being and motivation. Accor services uncontested market leadership is based on the two original flagship products-Ticket Restaurant and Ticket Alimentation and its constantly expanding product portfolio is shaped by the growing trend toward urbanization and the resulting need for services and assistance. Each time, the goal is the same: listen to people’s concerns and provide the solution best suited to each situation, in both mature and emerging markets. This objective requires a constantly renewed capacity for innovation and in-depth knowledge of each market. Source: Accor2009 corporate brochure. 1.2.Strategic partnership:(A group to group partnership strategy): Since 1998, Accor has been developing partnerships with major firms. These alliances manifest a strategic determination to adopt an overall group to group approach that is advantageous for both customers and partners. Naturally, this type of cooperation is concerned with business segments that offer a potential for synergies or that target the same customer base known for its mobility: transport, leisure activities, information and travel-related services. The business net-work is growing up more and more. 2. History: Accor is a best business infrastructure contains historical milestones. Since the opening of the first Novotel in Lille in French, team members have been driven by a pioneering, winning sprit. A key factor in Accor’s success, this mindset is also shaped by a constant concern for people and a commitment to the highest performance standards. 40 years of Innovation: 1967:opening of the first Novetel in life (Franch) 2008: creation of MGallery and launch of the A|club world wide loyalty program. 2009: an alliance between Accor services and Master card Europe to create prepay solutions.(source: www.corporatebrochure 2009.com) The short listed history focused on major successes and core brands. Each stage of the success is bearing so many historical activities. Today’s brilliant progress is supported by historical business performances. 3. Accor and Global Competitor: Accor are highly successful over the long-term effectively acquire, develop and manage resources and capabilities that provide competitive advantages. Their competitors are very smart and world wide famous business organizations. The organizations are Starwood, Marriott, Hilton, Intercontinental, Hyatt and Wyndham. All are established with strong business performance background and capability. 4. Accor Operations and Strategy: 4.1:centers of Expertise(operations wheel): Accor group the largest international hotel chain, confirmed its confidence in the world market as the major tourism market to which the group pays special interest to implement and continue its strategic plan to promote its growth in corporate service. The centers of expertise model show the best organization infrastructure: Centers of Expertise, Figure- â€Å"Accor has leveraged its more than forty years of experience to develop very high level skills platforms. These interconnected units extend across all businesses and countries to create a system that is truly unique. By sharing best practices and pooling costs, they enhance the performance of Accor’s brands, support hotel owners and employees in their day to day operations and guarantee that customers always receive the very best service.†-Accor corporate2009. Purchasing: Working with frontline teams and backed by a network of 200 buyers around the world, Accor has developed purchasing procedures and high performance tools that have made it an expert in the optimization of food, equipment and service costs. Recognized by franchisees, this expertise supports negotiations at regional, national, and global level with some 2,800 approved suppliers around the world. Construction and Maintenance: A traditional area of expertise and constant source of innovation, Accor’s construction and maintains platform naturally brings together teams from development, operations, finance, legal affairs, marketing and hotel systems. Experts manage several hundred projects a year, overseeing construction, renovation and maintenance while monitoring environmental impact ever more closely. Distribution and Hotel website: Web teams enhance hotel visibility and make booking easier via the accorhotels.com or individual brand sites. In addition ,they support the brand’s online development through partner websites. Each year, more than 90 million people visit Accor websites around the world. In 2010,some 12.7 million hotel nights were booked online, of which 80% on own sites. Technological Support: Technological support teams install wireless systems in hotels, help migrate services to electronic media and manage booking and distribution systems,with the goal of providing frontline teams with easier access to information and customers with the full range of Accor products at the lowest possible price. 4.2: Great Innovation by Accor: A responsible, community- minded enterprise: It was launched in 2006 to federate their sustainable development initiatives, the Earth Guest program provides a tangible response to growing environmental concerns and major health hazards. In 2010 the organization has taken more steps.                Its set a number of far-reaching goals. They are involving in local development, children protection, lead the fight against epidemics and promote balanced nutrition, for the benefit of Accor’s employees, customers and host communities, it also providing training in AIDS and malaria prevention to all employees. Other programs also provided to eliminate sexual tourism involving children, reducing Hotel water and energy consumption by 10%, equipping 200 hotels with solar panels and introducing waste-sorting programs in all European hotels. source:www.accor.com Corporate sponsorship: A social responsibility is a part of any leadership, as Accor. In 2010, Accor’s corporate sponsorship priorities focused on their four commitment are local, health, culture and heritage, humanitarian aid. Corporate sponsorship is defined as â€Å"the provision of material support to a cause or person for an activity serving the general interest, with nothing received in return†. Every day, Accor employees support various initiatives through a very active corporate sponsorship program. 4.3. Dynamic Strategic Plan: Continuing expansions of the Hotels and Services business: more than 35,000 new rooms development program between now and 2015. Further divestments of non-strategic businesses: Through non-strategic assets disposal policy, the Group announced the sale of Red Roof Inns to a consortium comprised of Global Special Situations Group and Westbridge Hospitality Fund, L.P.for $1.32 billion. Another sale the Italian institutional catering business to Barclays private Equity for  £135 million. Ongoing program of property disposals: In first-half 2007, Accor pursued its assets-right strategy adapted to risk-reward profile of each market segment and region. The end of 2010,it realized more than  £450 million through the disposals of its property assets(450 hotels) of which more than 50% had already been secured by the end of April,2010 and another  £1.6 billion is expected to be generated in the period from 2010 to 2013.Over the 2009-2010 period, the Group is planning to change the operating structures of an additional 500 hotels. In all, more than 1,600 hotels will have been restructured by the end of 2011. Optimized balance sheet: Debt refinanced with new  £2 billion syndicated of credit and new share buyback program. 5. Marketing Sales: Brands within the hotel industry are aimed at different customer segments and 2009 saw several companies launch new brands. International Hotels are opened a new brand in early 2009 to target the generation X customers while still being acceptable to older generations(Freed,2009).During the same year, Accor launched a project to reposition the brands. By rethinking strategies, reinventing products, redesigning graphic identities and reworking advertising campaigns, the teams have made the brands even more powerful, in local markets and around the world. â€Å"The Battle of Revenue†-Targeting highest revenue the Accor Marketing Sales. 6.Training Human Resource: In hospitality industry HRM takes an important role which is to forecast the demand for employees and also reducing undesired turnover, lavor cost, improving employee productivity and improving goods and services provided are goals of the HRM function(Demir,2004).Its other important components are developing succession plan, layoff, promotion policies, ensuring compliance with local labour laws(Demir,2004).Accor’s human resource policy focuses on career advancement through training, work, job assessment and motivation. They have always been committed to respecting, training, rewarding and supporting their employees. The goal is to help employees develop not only a skill set but also a mindset. Diversity and equal opportunity are also an integral part of this policy. Source of Accor: 80% of our employees are in day to day contact with customers 171,000 employees received training in 2010 90% managers were promoted from within the organization 6.1 Career Advancement: Accor developing all talents: Nearly 90% of managers got their job through internal promotions Every year Accor welcomes several thousand interns and apprentices. Depending on job vacancies, work study contracts are transformed into permanent work contracts in one of the many Accor brands. Accor strongly encourage: An assessment interview with manager on a regular basis to take stock of career evolution. People can easily have a position through job application. 6.2 New talents perspective: â€Å"Academie Accor Worldwide†network, whose ambition is to: Help employees climb the corporate ladder, by developing qualification training programs for future. Offer every year employee one training session a year, by reinforcing training in the workplace to improve quality. â€Å"In 2010,171,000 employees took part in one more training courses, including over 142,000 non managerial staff. The training budget totalled 2.2% of payroll.†(www.accor.com) Employee benefits: Accor employees receive an incentive bonus and could be obtained company share. Every employee receives a Bienvenue Card offering special advantages at all Group brands in every country where Accor is present. A good management support has been providing to employee to feel free and enjoy the work. Accor doors are always open for those who like to promote them. 7. Management Finance: The end of December 2010, Accor  reported that hotel revenue amounted to  £ 5,693 million, up 98% to increase this revenue  £75 million possible only for the efforts of approximately 145,000 employees(datamonitor 2010).That revenue held steady during the difficult economic condition in 2009,at  £236 million but in full-year it should come to around  £440 million versus the  £400- £420 million target announced in late October. At constant scope of consolidation and exchange rates, the like-for-like increase 8.7%,confirming the favourable trend enjoyed by the Services and Hotels businesses since the beginning of the year. The expansion strategy accounted for 9.4% revenue growth of the year. Disposal carried out under the ongoing asset-right strategy in the Hotel business and divestment of non-strategic assets including Go Voyages, which was sold in April –reduced revenue by 4.4%. Currency effect was negative 2.6% for the year. Press Release, Paris February 23,2011.In the midest of the recession, Accor is one of the multitudes companies facing this problem and came out through this situation because of their strong strategy of business. Accor business success is remarkable. The financial records show the strong earning growth and dynamic implementation of the strategic plan. The whole businesses are benefiting from a favourable business environment, with the Services business enjoying structural growth in demand and the Hotel business lifted by an upturn in the European hospitality industry cycle. The recent 23 February 2011,press Release disclosed the current strong position of the company. The Q2 financial report take the place to focus on the current situation. (in EUR millions)    2009       2010     % change     % change (9 months) (9 months) (reported) (like-for-like) Hotels                 5,186        5,693    +9.8%       +7.4% Upscale and       3,026        3,332    +10.0%     +9.0% Midscale Economy            1,626        1,806    +11.1%      +6.8% Economy US        536           555      +3.8%        +0.7% Services                543          624      +14.9%       +12.0% Other businesses  977         863      -16.0              +1.0% Total                    5,490       5,948    +8.4%           +7.1% 7.1 Financial Position and Result: Change in consolidation Development: In services, acquisitions accounted for 4.3% revenue growth for the first nine months, in line with the Group’s long term objectives. The development plan for the Hotels business provides for 101,000 new rooms to be opened in the period to 2014.During the first nine months of 2010,18,000 rooms were opened, contributing partially to the 8.4% growth in revenue generated by development initiatives. Disposal: In 2010, Accor announced that it had completed the sale of Red Inn to Citi GSS Group and Westbridge, as part of its real estate strategy. The transaction added  £470 million to the Group’s cash position. 8.SWOT analysis: In this section, analysis the operating environment for Accor. The operating environment is internal to the organization and the environment most under the control of company. Many factors are affecting the operation of a hotel business because of growing number of competition in the hospitality industry and also economic downturn affect on external environment and internal environment is affected by its marketing strategy and its organizational structure. Strength: Internal resources to any organization are its strength which provide an advantage. For Accor, the most valuable strength are likely to be intangible of reputation, corporate culture, superior customer service. The hotel group, Accor whose has a great interest cover different regions and categories stable cash flow prospects. According to Datamonitor(2010),one of Accor key strength is its high brand recall. It has demands for upscale, midscale and economy lodging, covering a wider market segment. It has Sofitel which is a prestige hotel brand in France and other cities in the world. The Novotel , designed for the mid-scale segment and Red Roof which are standardized hotels for the lower class segment. It is also engaged in many business that make more profit for company. Financial resource is also one of its strengths. Accor also allows its customers to get access on the information and able to have reservation through online. Weakness: In 2010, the weakness of Accor has its non-strategic business. By this non-strategic business they losing their brands. currently, the weakness of Accor can be seen from its being the operators may arise. Being hotel group it also a business with its fixed costs higher than other businesses. This may create problems when the demand in hotel decline. Improving the technological services is likely to be requirement to remain competitive but this is not a appear to be a weakness. Another future risk is to be maintain all brands by globally. Opportunities: In Global business there are huge opportunities in spreading operations over different regions like Asia, so it is to Accor take the opportunity with its experience in international operations business sector. Accor has established a name in hotel operations so merger and acquisitions not only in hotel industry but also in other business like restaurants and travel which is easy for growth strategies. To be a Market leader Accor has been developing partnerships with major firms. Different business idea assent-right strategy will open more business way from external side. As a part of the international marketing strategies of its brands, Accor has developed sponsorship actions in the whole world their new brand invention opportunity to compete global market properly. Develop advertising and through the web site they increase their sales and also using new technology Accor able to renew their communication target to internal promotions on language and the users country. For need to cre ate a system that is well integrated. Threats: Accor hotel and services operations are spread in whole world so that they have to face to risks of foreign currency fluctuations because about two thirds of its revenue coming from international operations. In the past the company’s revenues were severely affected due to unfavourable foreign currency fluctuations. For example, during 2003, the weakening of Latin America and US currency reduced its revenues by 4.3% over 2002(datamonitor,2003). This risk will create a negative impact on its overall financial performance. In tourism and hospitality industry another threats is Geopolitical uncertainties and global and regional economic downturn such as terrorist attacks, the spread of epidemic, unfavourable political conditions, etc, have negative impact on the Industry. For example, in 2009,Accor was confronted with on exceptionally weak economic environment, which caused revenue to decline by 10.1%(datamonitor,2009). There are too many world-wide competitor in hotel industr y such as Hilton Group plc, Marriot International, Hyatt corporation, who are also struggling to overcome the unfavourable market and economic condition are another threats and also be pricing pressures which will affect the company’s margins. The company’s ability to proactively expends presence in the under penetrated markets and to take over independent hotels will determine its market position and growth in future. S.w.o.t Analysis:                                       9.PEST –Analysis of Accor: Political factor: In globalized environment Accor the largest hospitality group in Europe now operates in 140 countries based in Every Cedex, France. Accor is highly influenced by the political and legislative conditions of these countries. In hotel industry, Accor French company still didn’t face any big threat because of their reduction in level of terrorism and also good relation with EEC country and others as well. Getting and giving favour through business channel they still do their business with whole world. Economical factor: Accor is a more profitable organisation, between 2006 and 2012 in chain hotels is expected to rise by 5.7% a year, compared with an increase of 3.7% a year for the market as a whole. Economic factor are concern to Accor, because they are influenced on demand, cost, prices and profits. One of the most influence factors on the economy are acquisition, merger and demerger. In last year, Accor was increased its stake in Poland’s Orbis by 4.9%,from 40.58% to 45.48% at a cost of  £42 million. From there financial report their earning objective is so good around the year. Socio-Cultural factor: Current situation indicate that Accor provide good service for customer they using 7 language through the online and graphics and maps also adding value to booking experience, which is due to variety of social changes. Demographic changes such as the aging population and an increase the female worker because the company believes that men and women at the heart of its strategy. The company also focus on their employer and to make an increased efforts more and more training place and of social advancement. Accor also provide franchises with added value and HR services and helping earth people they are involve in the Earth Guest programme with ECO and EGO and also developed corporate sponsorship for child aid, local aid, health, and cultural. In future Accor will continue to respect generation, cultural and professional differences. Technological factors: Technology is the major macro-environmental factors which has influenced the benefits of both customer and company. customer satisfaction rises because the world moves so fast, goods are readily available and services are more personalized. so that Accor utilise the following technology- Websites and Hotel Booking Up to date information systems Electronic media card (pre paid card) becoming more demandable. 10 Accor Ambition: â€Å"Accor Ambition is to become or remain the leader, on all continents, in service and in economy and midscale hotels, and major player in the upscale segment.†-Source: Accor 2009 corporate brochure. 10.1. Accor Spirit: Since the opening of the first Novotel in Lille, team members have been driven by a pioneering, winning spirit. A key factor in Accor’s success, this mindset is also shaped by a constant concern for people and a commitment to the highest performance standards for it. For more than forty years, across all bands and regions, Accor’s five core values of innovation, spirit of conquest, performance, trust and respect have been shared by all employees now 145,000. 10.2. Competitive Market: Companies should focus on porter’s five forces closely during the strategy planning process and continue monitoring throughout implementation. These five forces are-industry competitors, new entrants, buyers, substitutes and supplier’s(Pearce Robinson,2004). Factor that indicate rivalries within the hotel industry include competitors that are roughly equal in power, numerous competitors, high fixed costs and high exit barrier’s (Pearce Robinson,2004). Buyer’s power to use substitutions of porter’s forces that work together for Accor. Buyer increase in power when the products have little differentiation, does not save the money and when buyer’s has incentive to reduce purchasing costs (Pearce Robinson,2004). During the recession buyers of temporary has been more price-sensitive and low switching costs and seek to substitutes. Porter’s five forces analysis on Accor: 1.New Entrants Barrier’s-Low Hotel operating license Capital requirement Building distribution network Human resource requirment 2. Rivalry-High Many competitors Exit barrier 3. Power of Suppliers-Low Many suppliers Switching cost Advance technology 4. Substitutes-Low Readily available and attractive priced Not comparable Switching cost  11. Strategic Planning for future Market: For multinational company Accor, strategy plays a key role to take a place its operation in the diverse environment. As a service industry, the ability to meet the customer needs on a global basis is of growing strategic importance (Nahapiet,1998). Accor’s always focus on what the customer wants and not what the hotel firm believes is one of their marketing strategies. As a part of their customer service they introduced the new concept at Sofitel to offer ultimate sleeping comfort,it also changes its corpora culture to the changing customers’ needs. Having a corporate governance system to decentralised organization as it takes international expansion, matching its organization’s capabilities and competencies to the competitive conditions of the external environment. For example, in China Accor management consists of Chinese people in order to understand the culture, taste and preference existing there. 11.1: Three pillars of Strategy: Geographically and Structurally balanced business portfolio-Accor hotel is present geographically with its current and future customer, that why it comes up in host countries should limit their exposure to economic and geopolitical rick. This Strength makes a position in other attractive market places. A disciplined, results oriented management-the company is committed to respect, give train, reward thus supports their employees. Their important asset is the quality services provide to their people’s professional skills, it is a main part of them to implement customer’s satisfaction and service quality. A set of powerful, aligned brand-its company aiming to become leader in all continents, Accor position them as umbrella brand to provide its operating brands. In order to support their ambitions its visual identify enhances. Expending the brand portfolio it offers non- standard and slandered products for more demands. 11.2: Accor Strategic Vision: In 2010, Accor become a pure-player in the hotel business. Having demerged from its service business, Accor intends to its strengths to step up the implementation of its strategy and provide its growth: comprehensive brand portfolio suited to needs, unique know how as the world largest hotel operator, a leadership position in four continents and a business model with sound fundamental that withstood the economical crisis. 12.: Result and Research questions: Finding 1.What type of generic strategy does an Accor hotel employ? Accor focus on their strategy that is geared toward identifying market and meeting the needs of the customers in these target groups. It use the guidelines in most of its acquisitions and merger to be the major stakeholder but also have a partner who can help the company with challenging in local market. In that case, they have local partner in France and in US it hold 44 per cent of economic hotels. So the company targets its market and also focuses on offering innovative services and competitive price in order to compete effectively. Again, the company’s success is a result of a carefully crafted generic strategy. Finding2.In competitiveness of the environment, how much opportunity exists of Accor in the international hotel business market? From the case data, the opportunities in tourist market are extremely great. One reason is because the market is going to continue growing. The number of hotels in Europe, the US, Japan will increase sharply. Asia, for example, will be an important market because of its large population and the most tourist places. By focusing on these more affluent markets and competitive prices, Accor has a very good chance of outdistancing the competition. Finding3. What basis would a firm like Accor evaluate performance? There are a number of bases that Accor uses in evaluate performance. One is market share. In evaluating its performance in Europe the company has been keeping track of its success among new subscribers and second way in terms of market capitalization. From the case data that after acquiring communications this value stood  £5,693 million. 13. Goals and Implementation: Every marketing plan must include a control component that compares actual performance with the planned performance. Through collecting performance data the gaps between the objectives and the performance will be evaluated regularly to pursuer required corrective action. Creating implementation plans and strategies is the necessary to the day to day actions of making the dream a reality. In that case Accor faces in product development, marketing, accounting and human resources management as they strive to meet the company’s long term strategic goals. With a focus on growth, Accor should emphasize product development in order to meet the needs of a larger segment of the market. According to research some perceptible improvement are follows- To improve how work together and how develop their people so that a high performance organisations. To deliver an outstanding experience for all customers. To improve the financial performance of the company and deliver for their shareholders. To maintain and improve their performance quality of processes. 13.1. Conclusions and Recommendation: Based on analysis, the following conclusions can be drawn about the nature, extent, and future of Accor Hotel Group. In hotel industry Accor faces some problem because there is shortage of employees 145000, this staff failures have the biggest negative impact on gust loyalty. Their poor services experience explains why 68% of customers shift brands. They should focus on there core/signature services and also service recovery and also target those guest segments who are still most likely to travel and pay a premium for luxury experience. In addition, that can be used as more focused marketing, utilize that premium experience with special offers and bundled packaging. Accor must be careful about their pricing system and advertising. Slashing prices as a reaction to the recession is never good for business in long term but also impact on brand image. Through business strategy Accor shows the best success when received the highest revenue 8.7%. The first half 2007,Accor pursued its asset-right strategy adapted to the risk-rewarded profile of each market segment and region. The organisation already presented their new business model to support and achieve organisation objective. Between 2006 and 2013, the number of overnight stays in chain hotels is expecting to rise by 5.7% a year compared with an increase of 3.7% a year for the market as whole. The supply and the demand chain will have better way to success in future. the business expansion will make the organisation stronger. Accor will be a best global leader in near future. It makes a constant focus on the long term sometimes taking bold action but never excessive risk. References: 1.Hamel,G and C.K Prahalad,(1994). Competing for the Future Boston: Harvard business School press. 2.Aian M .Rugman and Richard M.Hodgetts,(2003). International Business.3rd ed. Pearson education ltd 3.Geof Lancaster and Ian Waddelow,(1998).Strategic Marketing Planning. Journal of marketing management 14.853-878. 4.Laurie J Mullins,(1995).Management and Organisational Behaviour.3rd ed. Pitman publishing. 5.Phillip Kotler, Jhon Bowen, James Makens,(2003). Marketing for Hospitality and Tourism. 3rd ed.Prentice Hall. 6.Jonson Scholl and Gerry,Keven,(1999).Exploring Corporate Strategy(Text cases).6th ed.Prentice Hall Europe.
Thursday, February 27, 2020
Describe the changes that have occurred in the last generation with Essay
Describe the changes that have occurred in the last generation with regard to personal and family finances - Essay Example Other legislations that have contributed to changes in the management of personal and family finances include the legislations governing health care. Such legislations as the Obama care Act required Americans to access effective insurance policies to help improve accessibility to quality health care. As such, individuals and families in the country had to restructure their spending in order to factor in health care services. Such legislations help improve the quality of lifestyle in the country. Financial security is a major priority to most American families in the current century. As such, most Americans continue to devise appropriate ways of achieving this. Despite such ambitions, the cost of living is rising partly because of the new legislations and the changing lifestyles in the society. Health care, childcare and need for a home and payment of college fees coupled with the desire to retire to a safe and financial secure old age continue to mount pressure of American families, especially those in the middle class. The rising number of financial needs while the sources of income remain limited is a fundamental concern that validates the changes in the management of both personal and family finances (Warren and Warren 65). The increasing demand for money at a time that earnings remain limited is a basic factor that influenced change in the management of finances in families. Most Americans are thinking of the most appropriate ways of investing their money in order to secure their stability. Instead of limiting spending and working hard, Americans are currently looking for ways of working smart with both their finances and the opportunities they meet. While school remains fundamental, numerous successful individuals in the modern society have a history accentuated with dropping out of school a feature that portrays that Americans are looking for opportunities. Insurance services offer a reliable plan to some of the most
Monday, February 10, 2020
Change of Social Status of women in society Essay
Change of Social Status of women in society - Essay Example The norms differ culture to culture and religion to religion, however no religion in the world commands degradation of any sex physically or psychologically. The underscore of this dissertation is the story "Another evening at the club" by Alifa Rifaat (1983), revolving around a Muslim girl. The writer skillfully uses the body language and gestures to illustrate the traditions and customs of the family therefore highlighting male dominance in the content. It is an excellent example of women being influenced by men, the role changes from father to husband but the prejudice is intact. The society is constructed of cultural norms, traditions and religious beliefs, illustrating a concept of specific roles for men and women, which are widely accepted often unconsciously. All such principles governing the society, often enforced through social institutions like schools, families and workplaces accentuate ascendancy of men over women. In many areas there is no concern regarding womens education, civil rights, the girls are married off young to men double their ages. Families bearing multiple daughters feel indebted to any suitor that might come to them, especially ones that are not financially secure. As depicted in the story where the suitor asserts a dowry priced in accordance to the young girls beauty. The girls family is showed to be obliged by his gesture. According to the article Social Status of Women (ch.2) such practices are common in various communities; a bride price system quite similar to the dowry system is present in areas of Western hills and Indo-Arya n communities. Similarly another custom called Tilak; in which the brides price is conferred and presented to the grooms family before marriage, is practiced in the Maithili communities of Western Terai. In earlier times the dowry used to consist of simple household supplies and clothes, however in recent times the trends are
Thursday, January 30, 2020
Health & Social Care Essay Example for Free
Health Social Care Essay Physical abuse is classed as the hitting, shaking, choking, biting or other physical attack on an individual. It can lead to bruising, cuts, scratches burns, fractures and internal injuries. As well as these more immediate injuries, there can also be longer term ones. Someone who is being physically abused may show signs of it, but they may not be noticed by others if the victim is hiding the abuse. Signs and symptoms of physical abuse are cuts, brusies, burns grip marks, unusual pattern or location of injury, depression, fearfulness, withdrawn and anxiety. Sexual abuse Sexual abuse involves any sexual behaviour directed toward an adult without that adult’s knowledge and consent. Sexual abuse can happen to people of all ages, including the elderly. Sexual abuse is a way that a person tries to have control over someone and has nothing to do with consenting sex between adults. Sexual abuse is another form of physical and emotional control of one person over another person, and it has nothing to do with consensual sex between adults. Read more: Explain the roles of different agencies in safeguarding and protecting individuals from abuse essay Signs and symptoms of sexual abuse are pain, itching or bruises around breasts or genital area, torn stained or bloody underclothing, sexually transmitted diseases, vaginal/anal bleeding, depression, withdrawal from regular activities, fear and anxiety. Emotional/psychological abuse – Emotional abuse can be as painful and damaging as physical abuse because it diminishes an adult’s sense of identity, dignity and self-worth. Emotional abuse is when a person is verbally assaulted, insulted, yelled at, threatened or humiliated by someone close to them or by a caregiver. The abuser often confines a person or isolates them by preventing them from having visits from family and friends or by denying them the chance to attend doctor or other personal care appointments. Signs and symptoms of emotional/psychological abuse are depression, fear, anxiety and behaviour changes when a carer enters or leaves a room. Financial abuse – financial abuse involves the improper, illegal or unauthorized use of an adult’s resources for the benefit of another. Signs and symptoms of financial abuse are unpaid bills, no money for food, clothing, or medication, unexplained withdrawal of money from someone’s bank account, family member or representative refuses to spend money on the adult’s behalf, possessions disappear, family member or another person forces an adult to sign over Power of Attorney against their own will. Institutional abuse – Institutional abuse refers to mistreatment of someone living in a facility for older persons. This includes nursing homes, foster homes, group homes, or board and care facilities. For example the abuse refers to the ‘home’ and staff having set meal times, set places a resident can eat their meals, a certain time everyone must get up Rigid, routines, Inadequate staffing, Insufficient knowledge base within service etc. Signs and symptoms of institutional abuse could be Inability to make choices or decisions, agitation if routine broken, disorientation, patterns of challenging behaviour. Self neglect – Adults are neglected when a caregiver does not provide the essential daily living needs of an adult dependent upon them, for things such as food, clothing, shelter, bathing, medication, health care, and doctor visits. Self-neglect happens when an adult can no longer take care of their own basic daily living needs. Signs and symptoms of neglect and self-neglect are malnourishment, dehydration, confusion, inappropriate clothing, under or over medication, skin sores, poor hygiene, absence of required aids, canes and walkers. Aiii / Aiv) If someone makes an allegation of abuse to you, the first and most important response is that you must believe what you are told. You must reassure the person that you believe what you have been told also reassure them that it is not their fault and that they are in no way to blame. Once youve reassured the person that you believe them, you should report the allegation immediately to a senior member of staff. Make sure you then make an accurate record of as much detailed information. Av) If the abuse is physical, no attempt should be made to clean anything such as clothes or residence. The client should be dissuaded to wash. Other people should be kept out of the way. With financial abuse, evidence could be paperwork such as bank statements so these should not be thrown away. You should only remove anything that could be evidence if you suspect the abuser might dispose of it before the authorities can see it. Avi) The national polices that relate to safeguarding and protection from abuse are the safeguarding board, the social services. The child protection agencies like the NSPCC Childline. The H.uman rights act 1998 and the Equalityact of 2000. Avii / Aviii) Different agencies and professionals play critical roles when involved in safe guarding individuals for example, Medical professionals such as GP, AE staff, nurses, doctors they can examine, diagnose treat, they can record. The local authority Social Services would carry out an assessment of needs. Safeguarding Team, within Social Services dept investigates and ensures safety, work with other agencies such as police. A Safeguarding Protection Officer would lead the Adult Protection Alert. Police to investigate/prosecute, to work with other agencies, to provide support to victims, to raise awareness of crimes, crime prevention. Care Quality Commission to regulate inspect care providers. Independent Safeguarding Authority. Aix) When seeking advice, support and information to help care workers understand their role in safeguarding good sources would be social workers, advocaces, further training, management, relevant laws and policies, CQC guidelines, care plans including risk assessments.
Wednesday, January 22, 2020
Student Motivation and Retention Essays -- Education Mathematics Essay
Student Motivation and Retention I decided to write most of paper about motivation because motivation is something that is lacking in several of my students in Junction City. I want to help students develop the motivation to learn math instead of hearing the bad attitude they have developed for mathematics. It is so frustrating to hear a student say that they do not care. Also in my paper, I plan to intertwine the topic of retention. My paper will lean more towards retaining students in math at the middle school level rather than college like the articles we read in class. I know that students can not switch out of math in the middle school, but they can choose to take many math classes in high school and choose a major in college for math. In other words, I want to find out ways for students to be interested in math field so they continue in the math field all the way up through college graduation. I have developed several great relationships with my students and care deeply about what the future holds for the m. My goal is to make a difference in their life by motivating them to like math and school so they do not drop out of high school. II. Background As I researched for articles dealing with motivation, the most common information that I found was strategies for increasing motivation. Some of the articles showed actual studies where certain strategies helped the student want to learn. The â€Å"Intrigue Model†by Lewkowicz is one strategy example that I will be writing about. Another article I found explained different types of motivation, which motivation is the best to have, and factors that influences the development of student motivation. Robert Case wrote a paper about a study he did in an India high school wat... ... OR, 1994. Malcolm, Shirley, and Treisman, Uri. â€Å"Calculus Success for All Students.†Calculus for a New Century: A Pump not a Filter, Steen, Lynn (ed.). Mathematical Association of America: Washington, DC, 1987. McNeal, Ralph. â€Å"Extracurricular Activities and High School Dropouts.†Sociology of Education v68n1: Jan 1995, 62-80. Renchler, Ron. â€Å"School Leadership and Student Motivation.†ERIC Digest No. 71. ERIC Clearinghouse on Educational Management: Eugene, OR, 1992. Seymour, Elaine, and Hewitt, Nancy. Talking About Leaving: Why Undergraduates Leave the Sciences. Westview Press: Boulder, CO: 1997. Treisman, Phillip Uri. â€Å"A Study of the Mathematics Performance of Black Students at the University of California, Berkeley.†Mathematicians and Education Reform: Proceedings of the July 6-8. 1988 Workshop, American Mathematical Society: Providence, RI, 1990.
Tuesday, January 14, 2020
How My Stories Were Written Essay
Have u ever read a story where you were related to or change your life? In the short story by Bulosan, he uses a few literary elements such as setting, and irony to show how someone’s life can be change by a storyteller. In the following, I will explain what is the role of the Apo Lacay in this short story and how he has helped the author to overcome in the new world. In the beginning of the story â€Å" It is true there are mountains which are green all the year round bordering the northside of the province of Pangasinan, my own native province, in the island of Luzon†, Bulosan uses setting to let us know where the story takes place; he also give us details on how it looks like. This place is so important to him because he was born and raised here; his childhood was not as greater as his adult life but he gain so many anecdotes about it. The people that lived in the village were attached to the past centuries and a lot of things have been said from one generation to another. There was a man who had lived more than anyone else in the village; he is a storyteller that comes from a mysterious dwelling in the mountains and start telling his tales to the children and adults. Repentantly, he became friend with Apo Lacay (the storyteller), and learned from his tales even if they were not true. The boy (the author) thought that there were wisdom from his tales and he wanted to remember what kind of people lived in the village when he moves to the land far away. We sometimes do not pay attention to what or whom we listen to, we do not realize that we can learn a lot from books or simple short stories and gain the greatest wisdom ever; no matter where we go, in this case the author went to America, nothing cannot take the knowledge from you. The boy has also learned that there is more fear among the man than in the night forest full of beast, birds, the trees, storm and tempests. â€Å"In the savage heart of man there dwells the greatest fear among the living†.
Monday, January 6, 2020
A Brief History Of Gold Finance Essay - Free Essay Example
Sample details Pages: 15 Words: 4527 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Gold was first discovered as yellow shining pieces and it became the part of human culture. Its brilliance, natural beauty and luster, its great malleability and resistance to tarnish made it enjoyable to work with. Golds early uses were ornamental, and its brilliance and permanence linked it to deities and royalty in early civilizations. Don’t waste time! Our writers will create an original "A Brief History Of Gold Finance Essay" essay for you Create order Power, beauty and gold have always gone together. In ancient times, Gold was used to construct shrines, idols, plates, cups, vases and vessels of all kinds, and for sure, jewelry for personal adornment. Gold is dispersed throughout world which is why its discovery occurred to different nations and different locations of the world. Everyone who discovered gold was impressed with this metal because of its beauty, shinning and luster. With advancement of technology, iron and copper are the greatest contributions to mankind but in spite of the fact gold came first to human culture and economic progress of the nations. Working with gold is quiet easy when gold is in pure state. Gold was found in pure form wherever it was discovered whereas other metals tend to be found in some mixture. Early civilizations associated gold with their gods and rulers and gold became the sign of power and glory, beauty, and cultural elite. Same thinking about gold was found throughout the world. Arch aeologies suggest that Gold began to be used with the first known civilization in the Middle East. The oldest pieces of gold jewelry that is Egyptian jewelry were found in the tombs of Queen Pu-abi and Queen Zer in Sumeria. These are the oldest examples found in any kind of jewelry. Most of the Egyptian tombs were raided during several centuries and it was found that tomb of Tutankhamen was not disturbed by modern archaeologists. Inside that tomb, huge collection of gold and jewelry was found. From these collections, there was a gold coffin which showed Egyptian craftsmanship and gold working. The Persian Empire (Its Iran now-a-days) frequently used Gold in artwork as part of their religion before conquest of Arabs in 7th century A.D. Persian goldwork is famous for animal art but after the conquest of the area by Arabians, the art was modified. As the Roman Empire was flourishing, the power of the state attracted talented Gold artisans who created numerous extraordinar y gold items. The Roman Empire began to expand the use of gold and designed household items i.e. kitchen stuffs and furniture for homes of the higher classes. Wearing gold necklaces became a beautiful trend in the Empire and by 3rd century AD the citizens of Rome used to wear necklaces with the picture of their emperor in it. Christianity spread through the European continent, and their culture as well as gold ornaments spread all over the continent. Before wide spread of Christianity, people buried gold with the dead people but this trend ceased with time and people began to collect gold in their churches. In America, people of Pre-Columbian cultures had advanced skills in the use of Gold before the arrival of the Spanish. Indian goldsmiths got most techniques their when the Spanish arrived. They were adept at granulation, filigree, pressing, hammering, inlay and lost-wax methods. The Spanish conquerors melted down and took back most of the gold from the peoples of this region. The greatest deposits, from whatever left, of gold from these times were in Andes and Columbia. During the frontier days of the United States, lot of discoveries of gold were made and news of discovery in a region resulted in settling a lot of people there, some risking their lives to find gold. Gold rushes occurred in many of the Western States. The most famous and prior discovery was in California at Sutters Mill in 1848. Other major discoveries were in Australia in 1851, South Africa in 1884 and Canada in 1897. This was the period of gold rush when workers migrated to an area that had a dramatic discovery of gold deposits. These gold rushes took place in 19th century in various regions of the world. Top the list is Australia following Brazil. Major gold rushes also found in Canada, South Africa, United States and smaller gold rushes took place in some other different places. Top Gold Mining Countries: 2011 Top 10 Gold Producing Countries Tuesday October 16, 2012, 5:00pm PST By Michelle Smith Exclusive to Gold Investing News The locations, where gold is mined, are diverse. It is produced in more than 90 countries and some of these countries are at the top of list. According to an estimate more than 1800 tons of the gold mined was among 10 countries in 2011. No single continent or its countries have earned the repute of mining highest gold of the world. Top ten countries are spread around the globe. Top 5 countries with their statistics are given below China: China can be named as nation of gold. It is not only the top consumer but also the top producer of this yellow metal. China has no risk of being removed from that number one place as its gold production was 355 tons in 2011. While the 2nd highest gold mining country is about 100 tons below. China National Gold Group claims to be the countrys largest producer, crediting itself with 20 percent of Chinas gold output. According to the US Geological Survey (USGS), China has 1,900 tons of gold reserves. Shandong is the leading province for gold production and within its boundaries Zhaoyuan, which reportedly produced over 28 tons of gold in 2011, is the top gold-producing city. Chinas official gold holdings are 1,054.1 tons or 1.7 percent of total foreign reserves. Australia Australias gold production rose in 2011 from the 261 tons reported in 2010. Though gold can be found across the nation, about two-thirds of its gold production comes from the state of Western Australia. That is where the world-class Super Pit at Kalgoorlie is located. Consisting of numerous mining operations, and once called the Golden Mile, this landmark site was converted into Australias largest open-pit mine and is owned by Newmont Mining (NYSE:NEM,TSX:NMC) and Barrick Gold (NYSE:ABX,TSX:ABX). Australia possesses about 11 percent of the worlds economic demonstrated resources of gold, according to Geoscience Australia. The USGS reports Australias reserves as 7,400 tons. Gold is a leading exploration draw, ranking se cond in this category of expenditure. The yellow metal is also among the countrys top 10 exports, raking in about $14 billion per year. Australias official gold holdings are 79.9 tons or 9.3 percent of total foreign reserves. United States A rise in gold production in 2011 from 231 tons in 2010 marked the second consecutive annual increase in the US. A portion of last years increase is attributed to the restarting of mines in the states of Montana and Nevada. The vast majority of the gold produced in this nation comes from Nevada, home of the Carlin trend. Newmont has renowned operations in the region, including 14 open-pit mines and four underground mines that operate as an integrated unit, employing various processing methods. Mined production of gold in the US in 2011 was about $12.2 billion. The US has 3,000 tons of gold reserves. Official US gold holdings are 8,133.5 tons or 75.4 percent of total foreign reserves. The US has the largest official holdings in the w orld. Russia Russias gold production in 2011 rose by 8 tons from 192 tons mined in 2010. Though Russia is fourth in terms of production, the nation ranks second in explored reserves. According to the USGS, the nation has 5,000 tons of gold reserves. The nations most prolific gold regions are Siberia and the Far East. Polyus Gold International (LSE:POLG), which claimed the title of top producer in Russia in 2011, operates in both areas. Vitaly Nesis, CEO of Polymetal International (LSE:POLY), recently said that Russia has the best prospects for gold mining globally, but also said the industry is shackled. He blamed poor regulation for hampering development and production expansion. Russias official gold holdings are 936.7 tons or 9.6 percent of total foreign currency. Russia is the only nation on the top producers list with official gold purchases reported by the World Gold Council this year. Through August Russia bought 57.6 tons. South Africa Centered on the list is Africas top producer. From 2010 to 2011 production in this nation was virtually flat, rising a single metric ton, or 0.5 percent. Though South Africa is no longer the king of the gold-producing nations, it has the most gold resources as well as the worlds largest deposits (in Witswatersrand). The USGS places reserves at 6,000 tons. Still, the nations gold production has been on a downward slope for years. Through May, production declined over 10 percent compared to the same five-month period last year. Aggravating matters further in 2012, labor unrest has plagued the mining industry. Last month, about 39 percent of the nations gold production was halted by striking workers. South Africas official gold holdings are 125 tons or 13.4 percent of foreign reserves. Purity of Gold The purity of gold is expressed in carats, often abbreviated to ct or K in the USA and some other countries. Pure gold has a purity of 24 carats. Various other purities exist that are measured relative to 24 carats. These are summarised in the table below. Purity Gold content Fineness 24 carat gold 99+ 990 22 carat gold 91.6 916 18 carat gold 75.0 750 14 carat gold 58.5 585 9 carat gold 37.5 375 An alternative method of expressing purity is fineness. This expresses the purity of gold in parts per 1000. Gold may be alloyed with other metals such as silver, copper, zinc or silicon to produce purities less than 24 carat. Silver and copper and most commonly used alloying elements for gold. Pure gold is too soft to be able to be used for jewellery. The metal chosen as an alloying element my influence properties such as workability and color of the resultant gold alloy. The purity of the gold is marked onto jewellery by st amping or laser engraving. This acts a quality control stamp. Often this is done after the alloy is tested by a qualified testing laboratory or facility. Depending on which country the gold is produced, the caratage or fineness may be stamped into the item of jewellery. According to the International Hallmarking Convention, there is a no negative tolerance policy. This means that a gold alloy determined to consist of 749 parts of gold per 1000 would not qualify for a 750 quality mark. Methods used to assay or test the purity of gold include: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢Ãƒâ€šÃ‚         Inductively Couple Plasma Spectrometry (ICP) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢Ãƒâ€šÃ‚         X-Ray Fluorescence ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢Ãƒâ€šÃ‚         Fire Assay ÃÆ' ¢Ãƒ ¢Ã¢â‚¬ šÂ ¬Ãƒâ€šÃ‚ ¢Ãƒâ€šÃ‚         Touchstone ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢Ãƒâ€šÃ‚         Electronic Pen ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢Ãƒâ€šÃ‚         Density Chemical and Physical Properties of Gold: Gold is not very hard; a knife can easily scratch pure gold and it is very heavy or even dense for a metallic mineral. Some of the other characteristics of gold are ductility, malleability and sectility, means it can be stretched into a wire, pounded into other shapes, and cut into slices. Gold is the most ductile and malleable element on our planet. It is a great metal for jewellery because it never tarnishes. The color and luster of gold are what make this metal so attractive. Gold is found as the free metal and in tellurides. It is widely distributed and almost always associated with pyrite or quartz. It is found in veins and in alluvial deposits. Gold also occurs in seawater in concentrations of 0.1-2 mg ton -1, depending on the location of the sample. In the mass, gold is a yellow-colored metal, although it may be black, ruby, or purple when  ¬Ãƒâ€šÃ‚ nely divided. One ounce of gold can be beaten out to 300 ft2 . Gold is a good conductor of electricity and heat. It is not affected by exposure to air or to most reagents. It is inert and a good re ¬Ãƒ ¢Ã¢â€š ¬Ã… ¡ector of infrared radiation. Gold is usually alloyed to increase its strength. Pure gold is measured in troy weight, but when gold is alloyed with other metals the term karat is used to express the amount of gold present. Gold has an electrochemical potential which is the lowest of any metal. This means that gold in any cationic form will accept electrons from virtually any reducing agent to form metallic gold. It is the most electronegative of all metals, which once again con ¬Ãƒâ€šÃ‚ rms its noble character. Investment in Gold: Year Gold (USD/oz) Increase Percentage 1970 37 1980 590 1494.59% 1990 391 -33.73% 2000 273 -30.18% 2010 1,410 416.48% 1970 to 2010 net change, %  1,373 3710.81% The biggest reason behind investment in gold is its price increase. From the table it is clear that, if we exclude the price increase in 1980 for a while, prices of gold are increasing sharply and returns seem to be higher than any other kind of investment. People thought investment in gold as hedge against inflation and investment in gold got popularity in 1980s when price increase was escalated. Nyiri studied gold prices in 1981. It was the period when gold prices rose sharply due to world-wide inflation. The researcher concluded that increase in gold prices is also due to increase in production costs due to opening of new mines in Czechoslovakia, Romania and Yugoslavia [1] . Anyhow, due to this price increase, people are preferring investment in gold. Investment in physical gold is considered risky due to some factors of theft, save storage, resale problems etc. Also, policies of different countries discourage investment in physical gold because it has a substantial impact on reserve of a country. According to study, USA is the leading country with most gold stocks followed by Germany. USA has 75.5% of physical gold as part of its reserves [2] . Offering gold physically may attract international smugglers to trade gold. This problem is minimized by offering electronic trade in gold. Two broadly used methods available for investing electronically in gold are gold shares and gold bullion. Some studies show that gold shares are better than gold bullion as investment choice and traders should give priority to gold shares when they have choice between the two [3] . These days, following methods are available for investment in gold. Physical gold Investing in physical gold is the original form of investing in gold. Physical gold can be bought in the form of gold jewellery, numismatic coins or gold bullion. From an investment standpoint, bullion gold is preferable due to lower costs and higher liquidity (i.e. the gold can be sold easily at fair prices) than other forms of physical gold. Gold bullion is also available in two basic forms: Gold bullion bars and gold bullion coins, which can be legal tender in specific countries. The costs for smaller bars and coins are comparatively high. Its generally the case that the smaller a bar or coin is, the higher the costs are for refining and minting charged by the distributors. If gold bullion is stored privately, security concerns must be considered. Really safe private storage is expensive. Privately stored gold has the additional disadvantage of low liquidity. Investors who decide to sell gold bullion must arrange the sale at a fair price and may need to verify the pu rity of their gold. Vaulted gold, i.e. physical gold stored in professional vaults does have the disadvantages of privately stored gold. Vaulted gold is usually cost-efficient and provides a high liquidity. Gold backed securities Gold backed securities are indirect investments in gold. Gold ETF (Exchange Traded Funds) and gold investment funds both open ended or closed are securities that (depending on the specific product) are backed by physical gold. A security is a financial instrument that represents a value in case of gold backed securities the value of an underlying amount of gold. In the legal sense, an owner of a gold backed security does not directly own the underlying gold but only the security, which in turn certifies the right to the gold. While gold ETFs are funds, gold ETCs are only gold-backed bonds. That means, the holder of a gold ETC only has a claim against the issuer of the gold ETC and does not indirectly own physical gold through a fund, as with an ETF. Most gold ETCs are fully collateralized with gold, but still pose a potential counterparty risk to investors. In most cases, owners of gold-backed securities cannot request physical delivery of the gold. Costs of gold bac ked securities vary by product. Generally speaking, gold ETFs and gold ETCs are often cheaper than gold investment funds and mutual funds. Gold mining stocks and gold mining funds Gold mining stocks and gold mining funds are other forms of securities which allow investors some exposure to gold. Gold mining stocks and shares are not investments in gold but in gold mining companies. In effect, the gold price is just one factor that influences the price of gold mining stocks. Company-specific factors such as management, company-owned gold reserves, etc. also play an important role. Investments in a single gold mining stock are risky. An investment fund that invests in multiple gold mining stocks reduces risk for the investor. But as stated, gold mining stocks are not really investments in gold. Gold mining companies can go out of business and the stocks can lose all value. In contrast, physical gold can drop in value but will never become completely worthless or disappear. Non-backed gold securities Besides gold-backed securities like gold ETF and (some) gold ETC, there are also securities, whose value is derived from the gold price but which are not backed by physical gold. Examples for those securities are structured products and options. Structured products are based on derivatives, e.g. options. Structured products and options can pose significant risks to investors and are therefore generally not considered a suitable form of gold investment for retail investors. Structured products are basically obligations, thus, investors in such products bear the risk that the issure defaults on them (counterparty risk). Other forms of gold investments Gold accounts, gold certificates and gold trusts are additional forms of gold investment. The characteristics of those products vary widely from direct gold ownership to claims on gold or the price performance of gold with no real gold ownership. Electronic Trading in Gold (International/National Markets): Today, different markets offer trading in bullion gold electronically. London bullion market, NY Globex and NYComex are at top of the list. Some people think gold as a safe investment and this is why overall trading volume in gold is gradually on rise. These markets offer gold buying or selling of gold by using just 5-10% of original amount of gold. One can trade in gold for any interval of time. Some people are engaged in trading gold on daily basis, some on weekly basis and some on monthly basis. Volatility in gold market may lead to profits as well as losses. Various websites and softwares for trading in gold have been developed which can update user about prices every moment and make alarms etc. Pakistan Mercantile Exchange (PMEX): PMEX is the first electronic, web-based, demutualised commodity exchange of Pakistan. It is licensed and regulated by the Securities and Exchange Commission of Pakistan (SECP) and trades all types of futures contracts. It started nationwide operations in May 2007. The entity is owned fully by institutional shareholders, which include the National Bank of Pakistan; the Karachi, Lahore and Islamabad Stock Exchanges; the Pak Kuwait Investment Company; and the Zarai Taraqiati Bank. Some of the most commonly traded futures contracts in such commodity exchange are agriculture futures, livestock futures, metals futures, energy futures, weather futures, currency futures, interest rate futures and equity and index futures. At present, gold, oil and silver dominate trading at PMEX, but the exchange also deals in palm olien, rice, sugar, wheat and KIBOR futures. Over the last several years PMEX has established a strong footprint in managing and offering international commodities in t he Pakistan market ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ especially gold, silver and crude oil. This trend is expected to continue with the introduction of new products in the coming years. PMEX announced an increase of 671 % from last year. In terms of volume this amounts to Rs 490,515,367,875 in 2010ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ 2011 versus Rs 63,610,332,963 previous financial year. The increase in terms of number of lots 1,475,582 were also remarkable and stood at a 365% growth over the same period. Pakistan Mercantile Exchange Limited achieved the highest ever monthly trading volume of PKR 129 billion in the month of August 2012 with a total of 325,000 contracts traded. This is a record increase, crossing the previous high of June 2012 of PKR 119 billion. Economic factors that move the gold price: Several factors are responsible for fluctions in gold prices; some of these are give below. Central banks Central banks and the International Monetary Fund play an important role in the gold price. At the end of 2004 central banks and official organizations held 19 percent of all above-ground gold as official gold reserves. Centeral Banks may sell or buy gold according to their requirements and reserves, these buying and selling cause a direct influence on gold prices. For example, European central banks, such as the Bank of England and Swiss National Bank, were key sellers of gold in 2009. Although central banks do not generally announce gold purchases in advance, some, such as Russia, have expressed interest in growing their gold reserves again as of late 2005. In early 2006, China, which only holds 1.3% of its reserves in gold, announced that it was looking for ways to improve the returns on its official reserves. It is generally accepted that interest rates are closely related to the price of gold. As int erest rates rise the general tendency is for the gold price, which earns no interest, to fall, and as rates dip, for gold price to rise. As a result, gold price can be closely correlated to central banks via the monetary policy decisions made by them related to interest rates. Hedge against financial stress Gold, like all precious metals, may be used as a hedge against inflation, deflation or currency devaluation. The currencies of all the major countries are under severe pressure because of massive government deficits. The more money that is pumped into these economies the printing of money basically then the less valuable the currencies become. If the return on bonds, equities and real estate is not adequately compensating for risk and inflation then the demand for gold and other alternative investments such as commodities increases. Jewelry and industrial demand Jewelry consistently accounts for over two-thirds of annual gold demand. India is the largest consumer in volume terms, accounting for 27% of demand in 2009, followed by China and the USA. Industrial, dental and medical uses account for around 12% of gold demand. Gold has high thermal and electrical conductivity properties, along with a high resistance to corrosion and bacterial colonization. Jewelry and industrial demand has fluctuated over the past few years due to the steady expansion in emerging markets of middle classes aspiring to Western lifestyles, offset by the financial crisis of 2007-2010. In recent years the amount of second-hand jewelry being recycled has become a multi-billion dollar industry. Some companies have been offering good prices and fair services for their customers. However there are many companies that have been caught taking advantage of their customers, paying a fraction of what the gold or silver is really worth, leading to distrust in man y companies. Short selling The price of gold is also affected by various well-documented mechanisms of artificial price suppression, arising from fractional reserve banking and naked short selling in gold, and particularly involving the London Bullion Market Association, the United States Federal Reserve System, and the banks HSBC and JPMorgan Chase. War, invasion and national emergency When dollars were fully convertible into gold via the gold standard, both were regarded as money. However, most people preferred to carry around paper banknotes rather than the somewhat heavier and less divisible gold coins. If people feared their bank would fail, a bank run might result. This happened in the USA during the Great Depression of the 1930s, leading President Roosevelt to impose a national emergency and issue Executive Order 6102 outlawing the hoarding of gold by US citizens. Weakening or Strengthening of Currencies: Strength of currency determines most of the above stated factors for gold price movements. Currency has a direct influence on gold prices. Since gold prices are fasten to US Dollar, so US Dollar has a direct influence on gold prices. Whenever USD strengthens, the price of gold moves down and vice versa. This movement due to USD usually takes no time. Weakening of USD may impact in fall in gold prices by $50/oz just in one second. There are further various statistics that influence currency of any country; some of these statistics are listed below Building permits CPI Crises/War Situation Existing Home Sales GDP Inflation Reports Manufacturing PMI Manufacturing Production Meeting minutes of any financial meeting Monetary Policy Statements New Home Sales PPI Public Sector Borrowing Retail Sales Speeches by Financial Ministers, central bankers, presidents Trade Balance Unemployment Claims Focus on Electronic Investors: Basic purpose of investors is profit, as huge as possible. Gold prices are sometimes speculated without any specific reason. These speculations are carried on just to attract investors. Investors keep an eye on everything that may lead the price of gold move up or down. Investors focus different economic factors of major countries. For example, Euro zone Crisis these days is a crucial issue for any kind of investors. Right move on the right time is the key to earn profits. But right move is rather difficult to find out. Right move is to buy gold when the price is about to rise and sell it when the price is about to decrease. No one can predict about this trend with 100% accuracy. Wrong move of trader may lead him to go bankrupt. Traders use different techniques and analysis to optimize their outcomes. Also with the knowledge of policy decisions and announcements, an investor should be expert in technical analysis of the prices. Technical Analysis: A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume is known as technical analysis. Technical analysts do not attempt to measure a securitys intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.Technical analysts believe that the historical performance of stocks and markets are indications of future performance. In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, the technical analysts decision would be based on the patterns or activity of people going into each store. Different softwares are now available in market to represent the results of various technical analyses. Some websites are also designed for the task. These softwares / websites calculate and shows graphs for each technical analysis each selected part of time (it may be second, minute, 5 minutes, 30 minutes etc) and generate buy or sell signals. Traders trade in gold or other commodities accordingly. Some of mostly used technicals are given below Trend Moving averages Commodity Channel Index Parabolic SAR Standard Deviation Oscillators Bears Power Bulls Power Momentum Force Index Stochastic Oscillator Moving Averages of oscillator Volumes Money Flow Index Accumulation Distribution On Balance Volumes Others/Custom RSI Alligator Awesome Zigzag Anyhow these technicals may generate abrupt results. Some technicals are used for specific conditions only. In addition, technicals are silent about expected profits.
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