How much Macbeth’s character changes during the course of the play Essay

By reference to three key scenes, shoe how much Macbeth’s character changes during the course of the play: Act I scene VII, Act III scene IV, Act V scene III The first we hear of Macbeth is when a bloodied soldier looking valiant after battle with great gaping wounds, describes a Great War hero: â€Å"For brave Macbeth well he deserves that name†. Shakespeare uses this speech to show Macbeth’s loyalty by saying he fought off a whole army and all for king and country. He also said their enemy ran away, then launched another attack and that Macbeth and Banquo fought it off even with their severe wounds: â€Å"They meant to bath in reeking wounds† And they still repelled the second attack, as though with renewed strength: â€Å"So they doubly redoubled strokes upon the foe†. We can see from this that Macbeth is a noble, loyal and trusted man, let alone a war hero. After Macbeth meets the witches, his personality begins to change. He becomes consumed with ambitions. In my understanding it was always there, like a petrol station with petrol running everywhere and leaky gas mains (always a fire hazard), the witches just threw in a Zippo. They had given him two predictions: 1) They greeted him as thane of Cawdor â€Å"Hail thane of Cawdor† (which he wasn’t) 2) Then as king â€Å"hail Macbeth, that shalt be king hear after†. After meeting the witches, the King’s messenger came to him and named him thane of Cawdor. He is very surprised at this and writes a letter home to his wife telling her about the things the witches had said, how out of the blue he had become thane of Cawdor and even mentioned about becoming king. This is where Shakespeare introduses Macbeth’s more sinister side: â€Å"Why do I yield to that suggestion whose horrid image doth unfix my hair and make my seated heart knock upon my ribs† As we can see Macbeth is starting to think of murder. We get another insight into his character from Lady Macbeth. She says that she thinks that he will be too kind to actually commit murder, and that she will have to do most of it then persuade him: â€Å"Yet I do fear thy nature it is too full o’ th’ milk of human kindness† We can see from this quote that Macbeth has a conscience and that his wife believes that he would grieve afterwards. When Duncan arrives at Macbeth’s castle, a banquet is held. We can se in Macbeth’s opening soliloquy (a dramatic technique show the audience what he is thinking) that he doesn’t want to carry on with the murder as he says â€Å"Could trammel up consequences† By Shakespeare’s use of the word â€Å"trammel† we can se he is thinking of death and if he could just be done with it and that was it, it would be fine but he knows there will be consequences for killing the king: â€Å"Hear upon this bank and shoal of time, We’d jump thr life to come† This shows that the Elizabethans believed in the after life. He also refers to the Elizabethan belief of the king being chosen by god: â€Å"His virtues will plead like angels trumpet-tongued against the deep damnation of his taking off† Later on in the scene we see that Macbeth doesn’t want to go through with the murder and want’s to call it off: â€Å"We will proceed no further in this business† And he gives three reasons he is his host â€Å"as his host† He is his kin â€Å"I am his kinsman and his subject† Duncan has been extremely kind to him † Duncan hath borne his faculties so meek† So to make Macbeth commit the murder Lady Macbeth taunts him and calls him a coward: â€Å"When you durst do it then you were a man† And at this Macbeth wants to do it to prove he is not a coward and we can see this from his next line: â€Å"If we should fail† showing he is thinking about the murder. Although Macbeth can wash Duncan’s blood from his hands he cannot wash it from his conscience: â€Å"Will all great Neptune’s oceans wash this blood clear from my hand? No† Macbeth is duly crowned king Banquo reveals his suspicions about Macbeth in a soliloquy: â€Å"Thou hast it now king, Cawdor, Glamis, all the wired women promised and I fear thou play’dst most foully for’t† Macbeth holds a banquet and invites every one. After this Macbeth hires an assassin to kill Banquo and Fleance his son. Macbeth seems to be losing his moral standing the further he gets into the play. Banquo sacrifices his life to save his son and Fleance gets away. The assassin shows up at the banquet and stands at the door to give Macbeth the news â€Å"there is blood upon thy face† The murderer then seeks praise for the murder of Banquo: Macbeth then asks about Fleance and is agitated to hear that he is still alive: â€Å"The worm that’s fled hath nature in time will venom breed, no teeth for the time present† Shakespeare uses a metaphor to show how Macbeth is afraid of Banquo and Fleance Macbeth then goes to sit down at the table but he thinks his place is taken and when the figure stands up it is the ghost of Banquo. No one else can see the ghost. It is only by Macbeth’s speeches that we can tell he can see a ghost. Macbeth is very scared and starts shouting but Lady Macbeth calms everything down. In a stage whisper, She calls him a coward and says that it is just like the dagger he saw pointing to Duncan’s room the ghost vanishes and he calms down and they send every one home saying he will be fine in the morning. Shakespeare usage of a ghost reflects king James’ fascination with the supernatural and the Elizabethans general belief in spirits and ghosts. He also uses stage whispers sililoquy and the idea of no one seeing the ghost except Macbeth, which could just be him hallucinating. So we are not entirely sure whether there really is a ghost there or the pressure of all the killing has got to him and he has flipped and had hallucinations. After this he is still paranoid and so to stop this he goes to see the witches again and this time the show him three visions. 1) Beware Macduff 2) None of woman bore shall harm Macbeth 3) Macbeth shall never vanquished be Until great Birnam wood comes to Dunsunane hill He is woken up by Lenox and decides to kill Macduff to be safe but he has fled to England to help Malcolm at this Macbeth is so angry he orders the assassins to kill his wife and kids and this shows a complete depletion of his morals. He as ordered assassins to go kill innocent children and women without a second thought. There has been a character reversal and now Macbeth has no morals and lady Macbeth as been driven mad with guilt. At the start, Macbeth would not kill Duncan and Lady Macbeth drove him to it. In the next scene Macbeth is getting hundreds of reports of the English force amassing on the horizon, but of-coarse he had the predications from the witches and feels confident. He doesn’t worry about them â€Å"Bring me no more reports, let them fly all. Till Birnam wood remove to Dunsinane† This shows an air of self-confidence and pride. He even accuses Thanes that ran away of being false which was very ironic as he killed the king â€Å"then fly false thanes†. From his opening speech we can see he thinks he is invincible: † The mind I sway by and the heart I bear shall never sag with doubt nor shake with fear†. When his servant comes he is white and pale so Macbeth calls him lily liveried, because the Elizabethans believed that courage came from the liver. When the doctor said that there was no cure for lady Macbeth that she had to cure herself Macbeth insulted him, which is a valid point, as King James 1st didn’t believe in doctors. Macduff and Malcolm’s army burst into the castle and the first wave come to find Macbeth and die until Macduff finds him and they fight. Macduff tells Macbeth he was born by caesarean section and so was not born of woman and he kills Macbeth. In conclusion I would say that Macbeth’s character changes drastically throughout the play. At the start he is a good and noble soldier who would never betray the king but gets persuaded easily by his wife. Then as the story progresses we see him start to lose morals as he orders the killing of Banquo on his own but is still upset about it, we can see that because of his hallucinations (seeing the ghost). Then he orders the killing of lady Macduff and her children showing he has gone of the scale and is totally evil. Whilst fighting Macduff he is arrogant and spares his life at one point in the fight. So when Macbeth is told that Macduff is not born of women he is shocked and dies a wicked fool. So we see the down fall of such a brave character we saw at the start because of a few predictions and the ambition. For if he saw what being king would do to him I doubt he would have wanted to be king and would have been contented but was tricked by the evil of the witches.

Costs, perfect competition, monopolies, monopolistic competition Essay

* Total Cost = market value of inputs firm uses in production * Profit = TR – TC * Costs of production = opportunity costs of output of goods and services * Explicit costs = input costs that require outlay of money by firm * i. e. $1000 spent on flour = opportunity cost of $1000 because can’t be spent elsewhere * Implicit costs = input costs that do not require outlay of money by firm * i. e. working as baker at $10/hour, but could be making $20/hour as a computer analyst * Economists include both costs, while accountants often ignore implicit costs * Important implicit cost = opportunity cost of capital. * i. e. use $300,000 savings to buy factory, but could have invested it at interest rate of 5%/year * ? forgone $15,000/year in interest income = implicit opportunity cost of business * i. e. use $100,000 savings and borrow $200,000 from bank * Explicit cost will now include $10,000 paid to bank in interest * Opportunity cost is still $15,000 (OC of $10,000 paid to bank is $10,000 and there is a forgone interest savings of $5000) * Economic profit = TR – TC (including both explicit and implicit costs) * Accounting profit = TR – TEC (total explicit costs). * Consequently, accounting profit is often > economic profit * For economist, business is only profitable if it can cover all explicit and implicit costs Production & Costs * In short run = size of factory is fixed because it cannot be built overnight, but output can be varied by varying the number of workers * In long run = size of factory and number of workers can be varied * Production function: relationship b/w quantity of inputs used to make a good and the quantity of output of that good (short-run) * Marginal product = increase in output that arises from additional unit of input * MP = ? TP/? Q * Law of diminishing marginal product = property whereby the marginal product of an input declines as the quantity of the input increases * Slope of production function (quantity of input vs. quantity of output) = marginal product * Graph become â€Å"flatter† as marginal product decreases (see graph) * Total cost curve = graph w/ quantity produced on x-axis and total cost on y-axis * Graph becomes â€Å"steeper† as quantity of output increases (see graph). * Fixed costs = costs that do not vary with quantity of output produced * i.e. rent of factory, bookkeeper’s salary etc. * Variable costs = costs that do vary with the quantity of output produced * i. e. cost of raw materials, wages of workers (increases as more output produced) etc. * Average Total Cost = TC/Q * Also equal to average fixed cost + average variable cost * Average fixed cost = FC/Q * Average variable cost = VC/Q * Marginal cost = increase in total cost arising from an extra unit of production * MC = ? TC/? Q * Marginal cost rises as the quantity of output produced rises (see graph) Typical Cost Curves * In many firms, MP does not start to diminish immediately after hiring 1st worker * 2nd or 3rd worker may actually have higher MP than first, b/c a team of workers can divide tasks and work more productively than a single worker * AFC, AVC, MC, and ATC will look different for this scenario Costs in the Short Run and in the Long Run. * Division of total cost between fixed and variable costs depends on time horizon * In a few months, GM cannot adjust number/size of factories, only workers * Cost of factories, is therefore, fixed cost in short run * Over several years, however, GM can expand size and number of factories * Cost of factories, is therefore, variable cost in long run * Because fixed costs become variable in the long run, the ATC curve in short run differs from the ATC curve in the long-run * Long-run ATC is much flatter than short-run ATC * Short-run curves also lie on or above long-run curves. * Properties arise because firms have greater flexibility in the long run – can choose which short-run curve they wish to use * In short-run, b/c of diminishing marginal product, increasing quantity of output increases ATC * In long-run, there are situations where ATC does not change with an increase in output * Constant Returns to Scale: long-run ATC stays same as quantity of output changes * Diseconomies of Scale: long-run ATC rises as quantity of output increases . * Often arises because in large organizations, coordination problems arise – difficult to organize and mobilize vast amounts of labour and raw materials * Economies of Scale: long-run ATC falls as quantity of output increases * Often arises because at higher production levels, workers can specialize * Analysis explains why long-run ATC curves are often U-Shaped * Long-run ATC falls at low levels of production b/c of increasing specialization, and rises at high levels of production b/c of increasing coordination problems What is a competitive market? * Perfectly competitive market has two characteristics: (1) many buyers and many sellers in the market, (2) goods offered by various sellers are largely the same * Goal of perfectly competitive markets is to maximize profits * Actions of any single buyer or seller in market has negligible impact on market price * Each buyer and seller takes market price as given * i. e. no single buyer of milk can influence the price of milk because the buyer purchases a small amount relative to the size of the market * Each seller of milk also as little influence on price of milk, because it is selling milk that is virtually identical to the milk of other sellers. * B/c they must accept market price, buyers and sellers in competitive market = â€Å"price takers† * i. e.if a dairy farm doubles its output of milk, the price of milk remains the same, but their total revenue will double * Total revenue will increase because increase in quantity sold, not increase in price * Sometimes, (3) characteristic of competitive market also used – firms can freely enter or exit the market in the long run * Average revenue = total revenue/quantity sold. * AR = TR/Q * For all firms, average revenue equals the price of the good * Marginal revenue= change in total revenue from an additional unit sold * MR = ? TR/? Q * For all competitive firms, marginal revenue equals the price of the good Three general rules of profit-maximization: * If MR > MC, firm should increase its output * If MR < MC, firm should decrease its output * At the profit-maximizing level of output, MR = MC * Remember, because a competitive firm is a price taker, its MR is equal to the market price Note: In essence, because the firm’s marginal-cost curve determines the quantity of the good the firm is willing to supply at any price, it is the competitive firm’s supply curve Firm’s Short-Run Decision to Shut Down * Shut-down refers to short-run decision to not produce anything during a specific period of time b/c of current market conditions. * Exit refers to a long-run decision to leave the market * Firm that shuts down temporarily still has to pay fixed costs, whereas a firm that exits the market saves fixed costs and variable costs * i. e.if farmer decides not to produce crops one season, rent for land becomes sunk cost, but if farmer decides to sell farm altogether, no sunk costs * Firm shuts down if total revenue from production is less than its variable costs of production * Shut down if TR < VC * Alternatively, shut down if TR/Q < VC/Q . * Which means, shut down if P < AVC * On graph, if market price is less than minimum point on AVC curve, firm shuts down and ceases production – firm can re-open if market price changes to be higher than minimum point * Therefore, point at which MC intersects AVC is the â€Å"shutdown price† * If a firm shuts down temporarily, its fixed costs are sunk costs * Firm can safely ignore these costs when deciding how much to produce * i. e. why don’t many restaurants close down at lunch time when they are nearly empty? * Because the fixed costs (rent, kitchen equipment, plates, silverware etc. ) would still have to be paid, only the variable costs (cost of additional food and wages to stuff) would be saved * Owner can make enough profit to cover these variable costs, and therefore, keeps the restaurant open Firm’s Long-Run Decision to Exit or Enter a Market * The firm exits the market if the revenue it would get from producing is less than its total costs * Exit of TR < TC * Alternatively, exit if TR/Q < TC/Q * Which means, exit if P < ATC and enter if P > ATC * Therefore, point at which MC intersects ATC is the â€Å"exit/entry price† Measuring Profits from Graphs * Recall, Profit = TR – TC. * Alternatively, Profit = (TR/Q – TC/Q) x Q * Which means, Profit = (P – ATC) x Q The Supply Curve in a Competitive Market * So far we have examined supply decision of single firm – now examining supply curve of market * Two possibilities – short term = fixed number of firms, long term = firms can enter and exit The Short-Run: Market Supply with a Fixed Number of Firms * In short-run, the number of firms in the market is fixed * As a result, the market supply curve reflects the individual firms’ marginal-cost curves, only with increased magnitude (both graphs same, but market quantity multiplied by some scalar value) The Long-Run: Market Supply with Entry and Exit. * Assume all firms and all potential firms have same cost curves * If firms already in market are profitable, new firms will have incentive to enter the market * Entry if P >ATC because profit is positive (recall, Profit = (P – ATC) x Q) * Entry = expand # of firms, increase quantity of good supplied, and drive down prices and profits * If firms already in market are experiencing losses, firms may exit the market * Exit if P < ATC because profit is negative * Exit = decrease # of firms, decrease quantity of good supplied, and drive up prices and profits * At the end of this process of entry and exist, firms that remain the market must be making zero economic profit * In other words, the process of entry and exist ends only when price and average total cost are driven to equality (P = ATC). * This has a surprising implication—we earlier noticed that firms produce so that P = MC * We just noted that free entry and exist forced P = ATC * The only way this can occur is of MC = ATC, and this occurs only when the firm is operating at the minimum of average total cost—called the â€Å"efficient scale† * ? long-run equilibrium of a competitive market with free entry and exit must have firms operating at their efficient scale * Long-run supply curve (market) will be horizontal at the price which corresponds to the minimum of average total cost * Any P above this level generates profit, leading to entry and increase in total quantity supplied * Any P (price) below this level creates losses, leading to exit + decrease in total quantity supplied * Eventually, number of firms in market adjusts so P = minimum of ATC, and there are enough firms to satisfy all the demand at this price Why do competitive firms stay in business if they make zero profit? * Remember that economic profits are not the same as accounting profits * Economic profit accounts for opportunity cost as well * So, when a firm makes zero economic profit, it may still be making accounting profits A Shift in Demand in the Short Run and Long Run * Because firms can enter and exit more easily in the long run than in the short run, the long-run supply curve is typically more elastic than the short-run supply curve Chapter 15: Monopoly Why Monopolies Arise. * Firm is monopoly if it is sole seller of its product and if its product has no close substitutes * Case of monopoly is barriers to entry: a monopoly remains only seller in a market because other firms cannot enter market and compete with it * Barriers to entry are monopoly resources, government-created monopolies, and natural monopolies Monopoly Resources. * Single firm owns a key resource * i. e. only one well in town and no way to get water from anywhere else * Rarely occurs because economies are large and resourced owned by many people Government-Created Monopolies * Government gives one person or firm exclusive right to sell good or service * Two important examples are patent and copyright laws * Both lead to higher prices than under competition, but encourage desirable behaviour * Drug companies allowed patents to encourage research, and authors allowed copyrights so they write more original books * Monopoly = increased incentive for creative activity, but at a higher cost Natural Monopolies. * Single firm can supply good or service to entire market at lower cost than could 2 or more firms * Occurs when firm has economies of scale over relevant range of output * In other words, firm’s ATC curve continually declines because when production is divided among more firms, each firm produces less, and ATC rises – single firm can produce as smallest cost * i. e. to provide water to town, firm must build network of water pipes – if two firms involved, both would have to pay fixed cost of water pipe, resulting in increased ATC. * Natural monopoly = less concern about new entrants * Normal monopoly’s profits attract entrants to market, but in a natural monopoly, new entrants cannot achieve same low costs that monopolist enjoys * If a market expands (greater demand) natural monopoly can evolve into competitive market Monopoly vs. Competition. * Monopoly can influence market price of output, while competitive firm cannot * As monopoly is sole producer in market, it can alter price of good by adjusting supply to market * Demand curve for competitive market is perfectly elastic (can sell as little or as much as it wants at one price), while down-ward sloping for monopoly * ? monopoly has to accept lower price to sell more output, and can only accept higher price by selling less output – so what price and quantity will it choose to maximize profits? Monopoly’s Revenue * AR = price of good (true for monopoly and competitive), but MR is not equal to price of good. * As a result, average-revenue curve is also monopolist’s demand curve * When monopolist increases quantity sold, has two effects on total revenue (P x Q): 1) the output effect = more output sold, so Q is higher, which trends to increase total revenue 2) the price effect = price falls, so P is lower, which tends to decrease total revenue * Competitive firm as no price effects – price taker, therefore can sell as little or as much as it wants, without any change in price * ? Output/price effect causes monopolist’s MR after first unit sold to always be less than price of the good * Consequently, monopoly’s marginal-revenue curve always lies below its demand curve Profit Maximization * Profit-maximizing quantity of output as determined by intersection of MR and MC curve * Some key differences between monopolies and competitive firms: * P = MR = MC (competitive). * P > MR = MC * In competitive markets, price equals marginal cost, and in monopolized markets, price exceeds marginal cost – crucial to understanding the social cost of monopoly Monopoly’s Profits * Recall, Profit = TR – TC * Alternatively, Profit = (TR/Q – TC/Q) x Q * Which means, Profit = (P – ATC) x Q * Same as in competitive markets Monopoly Drugs vs. Generic Drugs * What happens to price of a drug with patent runs out? * Monopoly firm maximizes profit by producing quantity at which MR = MC, and charging price well above MC * Therefore, when patent runs out, the price of the good falls to MC * Note: MC for drugs is almost always constant. * Monopolist does not lose all market, however, because many buyers remain loyal to brand-name, and therefore, brand-name can still sell at slightly higher price than â€Å"generic brands† Welfare Cost of Monopoly * Monopolies = higher prices than competitive firms = undesirable for consumers = desirable for producers in terms of total revenue * Is it possible that monopoly is desirable from the standpoint of society as a whole? * Recall total surplus measures well-being of buyers and sellers in a market * Producer surplus is amount producers receive for a good – (minus) their costs of producing it * Consumer surplus is consumers’ willingness to pay for a good – amount they actually pay for it * In this case, single producer is monopolist The Deadweight Loss * Consider case of a â€Å"benevolent social planner†. * Social planner care not only about profit earned by firm’s owners, but also benefits received by the firm’s consumers * Planner tries to maximize total surplus, which is producer surplus (profit) plus consumer surplus * Alternatively, value of good to consumers – costs of making the good to monopoly producer * Demand curve reflects value of good to consumers *. Marginal cost curve reflects cost to the monopolist * Consequently, the socially efficient quantity is found were the demand curve and marginal-cost curve intersect * If social planner were running the monopoly, he would achieve efficient outcome by charging the price found at the intersection of demand curve (AR-curve) and the MC curve – much like a competitive market * However, monopolists charge the price found at the intersection of the MC and MR curve * ? the monopolist produces less than the socially efficient quantity of output, and charges more than the socially efficient price * When the monopolist charges a price higher than the marginal cost, some potential consumers value the good higher than the MC but lower than the monopolist’s price * Consumers do not buy the good, and monopoly pricing prevents mutually beneficial trade * The deadweight loss triangle = total surplus lost = reduction in economic well-being from monopoly Is Deadweight Loss a Social Problem? * Not necessarily a problem for society * Welfare in monopolized market includes welfare or both consumers and producers * When a consumer pays extra dollar to producer because of monopoly price, consumer is worse off by a dollar, and producer is better off by same amount * Transfer from consumer to producer does not affect total surplus—sum of consumer and producer surplus * Unless, consumers are for some reason more deserving than producers—a normative judgement about equity that goes beyond realm of economic efficiency. * Problem arises because firm produces and sells a quantity of output below the level that maximizes total surplus Price Discrimination * Business practice of selling the same good at different prices to different consumers * Can occur in a monopoly (firm with market power), not in a competitive market * In competitive market, many firms selling same good at market price—no one would lower market price for any customer as they can sell any given quantity at one price * Increasing price would also be pointless, as customer would simply buy from another firm A Parable about Pricing. * Dry-cleaning example from class – charge adults $10 and charge students $5 with a stdent card * Choosing to forgo market of students at $5 results in deadweight loss because students do not end up putting their shirts into dry-cleaning, though they value the service more than its MC of production * With price-discrimination, however, everyone ends up with a shirt . * Price discrimination can eliminate the inefficiency inherent in monopoly pricing, because differentiating prices allows producer to charge customer price closer to customer’s willingness to pay than is possible with a single price Notes about Price-Discrimination * Monopolist must be able to separate customers according to willingness to pay—either geographically, by age, by income etc. * Arbitrage prevents price-discrimination – process of buying good in one market at a low price and selling it in another market for a higher price * Increased welfare from price-discrimination is all higher producer surplus, not consumer surplus * Adults/students no better off from having cleaned shirts—paid price they were willing to pay * Entire increase in total surplus is a result of higher profits for the monopolist The Analytics of Price Discrimination. Perfect price discrimination = situation in which a monopolist knows exactly the willingness to pay of each customer and can charge each customer different prices accordingly * Monopolist gets the enter surplus in every transaction * Also sometimes referred to as first-degree price discrimination * Refer to diagrams (a) and (b). * (a) firm charges single price above MC, and b/c some potential customer who values good at more than MC does not buy it at this high price, monopoly causes deadweight loss * (b) each customer who values good at more than MC buys good and is charged willingness to pay – mutually beneficial trade takes place, no deadweight loss, and entire surplus derived from market goes to monopoly producer in form of profit * Of course, in real life, price discrimination is never perfect because various customers are willing to pay various different prices – two forms of imperfect price discrimination . * 1) second-degree price discrimination = charging different prices to same customer depending on quantity of product bought * 2) third-degree price discrimination = market can be segmented and segments have different elasticities of demand * i. e. movie theatres charge lower price for children and senior citizens than for other patrons * Makes little sense in a competitive market, where price = MC, and MC for providing seat to child/senior citizen is same as anyone else. * If movie theatre has local monopoly, however, price-discrimination has motives * Demand curve for adults is less elastic, therefore can charge higher price, whereas demand curve for children/seniors is more elastic, therefore can charge lower price * How does imperfect price discrimination affect welfare? * Compared to monopoly outcome with single price, imperfect price discrimination can raise, lower, or leave unchanged total surplus in a market—however, always raises monopoly’s profits Examples of Price Discrimination * Airline Prices – charge less if stay over Saturday night or purchase two weeks ahead to separate personal travellers, from business travellers, who pay more * Discount Coupons – rich, busy executive will not clip coupons, whereas a unemployed individual will, allowing price discrimination * Financial Aid – separate wealthy students willing to pay high tuition from less well-off students * Quantity Discounts – bulk is cheaper because customer’s willingness to pay for an additional unit declines as the customer buys more units Public Policy towards Monopolies. * Monopolies fail to allocate resources efficiently * Produce less than socially desirable quantity of output * Charge prices above marginal cost Policymaker’s Response * Increasing Competition with Competition Law – for example, mergers * Regulation – natural monopolies not allowed charging whatever price they want, but what price should government set of a natural monopoly? * One might conclude set P = MC, so customers equal quantity of output that maximizes total surplus, and allocation of resources is efficient * However, natural monopolies always have declining ATC ? MC < ATC, if P = MC, then P < ATC, and firm loses money and exits industry * Government can subsidize monopolist and pick up losses inherent to MC-pricing, but would need to raise money through taxation for subsidy, and taxes have own deadweight loss * Alternatively, regulators can allow monopolist to charge price higher than MC, and if regulated P equals ATC, monopolist earns exactly zero economic profit * Yet, average-cost pricing leads to deadweight losses b/c monopolist’s price no longer reflects MC or producing good * Ultimate problem with MC- and AC-pricing is it gives monopolist no incentive to reduce costs—normally reduce costs to increase profits, but in these cases, monopolist will not benefit * Solution: keep some benefits from lower costs in form of higher profit, and practice something that is a small departure from MC-pricing. * Public Ownership—government owns natural monopoly instead of private firm * Doing Nothing—degree of â€Å"market failure† in economy smaller than â€Å"political failure† in gov’t Differences and Similarities | Competition| Monopoly| Similarities| Goal of firms| Maximize profits| Maximize profits| Rule for maximizing| MR = MC| MR = MC| Can earn economic profits in short run? | Yes| Yes| Differences| Number of Firms| Many| One| Marginal Revenue| MR = P| MR < P| Price| P = MC| P > MC| Produces welfare-maximizing level of output? | Yes| No| Entry in long run? | Yes| No| Can earn economic profits in long run? | No| Yes| Price discrimination possible? | No| Yes| Chapter 16: Monopolistic Competition. * Oligopoly: market structure in which only a few sellers offer similar or identical products * Concentration ratio: percentage of total output in market supplied by four largest firms * Monopolistic competition: market structure in which many firms sell products that are similar but not identical—following qualities: * Many sellers ? firms competing for same group of customers. * Product differentiation ? downward-sloping demand curve * Free entry and exit ? market adjusts until economic profits driven to zero Monopolistically Competitive Firm in the Short Run * Products are different ? faces downward-sloping demand curve * Same profit maximization rule as monopoly (Q at MR = MC and equivalent P on demand curve) * Identical to monopoly The Long Run Equilibrium. * When firms make profit in the short-run, new firm have incentive to enter the market * Demand curve shifts to left (reduces demand of each individual firm) * As demand for firms’ fall, firms experience declining profit * Conversely, when firms incur losses in short-run, firms exit * Demand curves shift to right (demand experienced by individual firms increases) * As demand for firms’ products rises, firms experience rising profit. * Entry/exit continues until firms in market make zero economic profit (P = ATC) * Demand curve is tangent to ATC (just touching, never crossing) * Characteristics of long-run equilibrium in monopolistic competition * As in monopoly market, P > MC (for profit maximization, MR = MC, and downward-sloping demand curve makes MR < P) * As in competitive market, P = ATC (free entry and exit drive economic profit to 0) Monopolistic vs. Perfect Competition Excess Capacity. * Entry and exit drive each firm in monopolistically competitive market to point of tangency between demand and ATC curves * However, this means quantity produced is less than that produced at the â€Å"efficient scale† –quantity that minimizes ATC (point at which MC intersects with ATC) * Perfectly competitive firms produce at the efficient scale * Monopolistically competitive firms therefore have excess capacity—they are not producing as much as they potentially can * Firm forgoes opportunity to produce more because it would need to cut prices to sell the additional output * More profitable to continue operating at excess capacity Markup over Marginal Cost. * Relationship between Price and Marginal Cost also different * Competitive firm, P = MC * Monopolistic competition, P > MC, because it must be for P = ATC * This leads to behavioural differences b/w perfect and monopolistic competitors * Perfectly competitive firm does not care for additional customers because P = MC, profit from extra unit sold is always zero * By contrast, monopolistically competitive firms P > MC, therefore, extra units sold = more profit Monopolistic Competition and Welfare of Society * One source of inefficiency is that P > MC * Some consumers who value good at more than MC, but less than P will not buy the good * ? deadweight loss similar to that of monopoly pricing * Another source of inefficiency is: 1) Product-variety externality: b/c consumers get some consumer surplus from introduction of new product, entry of new firm conveys +ve externality on consumers 2) Business-stealing externality: b/c other firms lose customers and profits from entry of a new competitor, entry of new firm imposes negative externality on existing firms * Perfectly competitive firms produce identical goods and charge P = MC, therefore neither externality exists under perfect competition * ? Monopolistically competitive markets do not have desirable welfare properties of perfectly competitive markets because it is not ensured that total surplus is maximized * Also very difficult to control these inefficiencies through public policy Advertising * Amount of advertising depends on products * Firm that sells highly differentiated consumer goods i. e.soft drinks, will need to advertise more than seller of undifferentiated industrial nails, or homogenous products like wheat * Some people critique advertising for convincing people that products are more different than they actually are, fostering brand loyalty and encouraging consumers to ignore price differences * With less elastic demand curve, firm charges larger markup over MC. * Support for brands suggests that brands provide consumers with information about quality of goods, and gives firms incentive to maintain high quality to protect reputation of brand names * Others believe encourages competition as it makes customers better informed about products * Advertising can signal quality of product as well, because firm willing to spend money on advertising must be creating a good product.

Discuss the view that the importance of technology for organisations Essay

Discuss the view that the importance of technology for organisations lies not so much in the technology itself as the ability to - Essay Example A distinguished characteristic of these opportunities is the fact that they are temporary that is, the organization that discovers them needs to exploit the technological opportunity swiftly before it gets to the organization’s competitors (Andersen, 2011: p54). They also need to do this because the opportunity could be quickly replaced by a technology that is more advanced. The organization, therefore, must hurry before the opportunity window ends. Research has shown that organizations, which come up with technological discoveries, in most cases, do not have the resources required to exploit them quickly. In this case, the organization is encouraged to collaborate as an efficient means of accessing complementary or additional information that could help speed up the exploitation process. The importance of exploiting these opportunities as fast as possible as opposed to simply being in their possession cannot be overemphasized. The importance of technological opportunities lie s in the ability to exploit it rather than the technology itself. Collaboration in Exploitation of Technological Opportunities Beginning in the mid 70s, the biotechnological industry has seen tremendous growth with increased innovations and new technologies. Several hundred firms with intensive Research and Development programs have entered the industry in the last forty or so years. Pharmaceutical companies have also been highly involved in the pursuit of biotechnological opportunities, for instance, through entering into collaborations on biotechnological advances with the new organizations. These collaborations are meant to exploit the opportunities in biotechnology that were discovered previously by the new biotechnological organizations (Archibugi & Michie, 2012: p34). An interesting feature in the exploitation of these collaborations is that their set up is widely varied in whether these opportunities are utilized at all and at what stage their utilization takes place, if at a ll. The timing of collaboration to exploit the biotechnological opportunity between the discoverer and the pharmaceutical firm is vital. Studies have shown that new biotechnological organizations vary in when they time their collaborations to exploit their opportunities when compared to pharmaceutical firms (Antonelli, 2010: p21). Biotechnological organizations that have rigid research and development programs that apply for patents in their projects or that possess earlier experience in research and development, exploit their opportunities sooner through collaboration. Collaboration is also accelerated by the establishment of industry infrastructure, for instance, national biotechnological centers, as well as increased protection of intellectual property. It was found that the project’s characteristics do not have a profound effect on the collaboration’s timing. While many biotechnological opportunities were initially focused on the phase of discovery, the exploitatio n phase has become more important as new technologies are discovered that replace previous ones (European Commission, 2010: p149). Identification of opportunity is now viewed as only being necessary, but not adequate for the actual technological exploitation. Because most of the start-up biotechnological firms do not have the required capital to exploit these opportunities, it is vital that they collaborate, with larger organizations, to make the most out of the

Personal Media Diary Essay Example | Topics and Well Written Essays - 1250 words

Personal Media Diary - Essay Example Over a period of four days, I recorded the time spent on the different form of media. After which I recorded the findings in a table below. Prior to this exercise, I had never contemplated on the amount of time I spent on different forms of media. I often listen to the radio as I drive but I had never assumed that I spent such an amount of time on the radio. I realized that I often use social particularly Facebook to keep in touch with my friend. This s mainly because I have quite a tight schedule and rarely get time to meet each of them individually. On the other hand, I realized that most of the calls I make are to my family members. The results for the four days were as displayed in figure 1 below Figure 2 is a chart representing the time spent on the different media. The vertical axis shows the time spent in minutes while the horizontal axis shows the use of different media types for the different days. Media production is the measure of the time spent on different media to produce or develop something. In the contemporary society, social media has become one of the commonest means of communication that many people including the journalist are increasingly adopting (medialiteracyproject.org Web). Many media houses often release their updates through social networks such as Facebook and twitter. As demonstrated on the chart labeled figure 2, Facebook, phone, TV, and radio are my most preferred media types. Although TV and Radio are amongst the oldest types of media, they are still commonly used for informative as well as entertainment purposes. I tend to watch TV a lot. This is because I usually relax and watch TV after school in addition to the time spent with the family as we watch the news. Additionally, I tend to watch a lot of movies different television Networks. I rarely rent movies but I often find myself

Strategic Management of Cooper Industries Case Study

Strategic Management of Cooper Industries - Case Study Example It is evidently clear from the discussion that Cooper Industries had always been aggressive in its diversification strategies as a means to add value to its manufacturing. While the period from 1967- 1970 was marked by the acquisition of related industries, Cooper industries grew from diversification by acquiring unrelated industries in the year 1980. Cooper Industries considered situations of crisis as opportunities and thus followed three basic principles while deciding upon acquisitions: the target company should be a market leader, the target company should be stable and has a good market for its offerings, the acquisition should make Cooper Industries a market leader in the respective industry. In its diversification regime, Cooper Industries had suffered both profits and losses. For instance, the acquisitions of hand tools, Gardner-Denver and Crouse-Hinds supplied diversification revenues while Dresser and Carrier and Black and Decker resulted in loss conditions. Thus, deciding upon the acquisition of Cameron Iron Works and Champion Spark Plugs is a dicey situation for it where it has to analyze its strengths, weakness and other factors which can provide efficiency without raising the debt burden. Over a period of thirty years, Cooper Industries acquired almost 60 manufacturing companies to add on to its manufacturing expertise. This not only made it independent of the external environmental pressures but also provided diversified revenue base where the sale of one segment compensated for another during tough times. Its organizational strategy was also aligned to the business strategy where every single acquisition was first closely analyzed and then acquired. Its MD&P (Management Development & Planning) division constantly worked on acquisitions to eliminate poor performing or redundant product lines and integrates the acquired business into its own. In these efforts, even relocation of acquired companies plants or reorganizing the staff made all the acq uired companies its profit centers. In order to gain a better understanding of its internal and external environment, the SWOT analysis puts the light.

Domhus UK Ltd. Quality and Environmental Management Systems Report Essay

Domhus UK Ltd. Quality and Environmental Management Systems Report - Essay Example The management system standard that is currently the most commonly employed and recognized is the quality improvement standard ISO 9001. The ISO 9001 standard comprises of the requirements as per which the organizations are certified. The chief requirements under the ISO 9001 are forming goals and targets, carrying out evaluations and performing remedial and preventative measures, handling documents and re-evaluating the system among others (Rasmussen, 2007, pp 17-18). Environmental Management Systems Standards The recent times had observed rising environmental legislation, enhanced interest amid stockholders in terms of environmental concerns in addition to business organizations’ inclination to accomplish reduction in expenses by minimising the use of energy, water and so on. This had led to the evolution of environmental management system standards (Wilkinson & Dale, 2002, p 285). The rationale behind the formation of standards for environmental management system is to endow companies with an efficient system for administrating services, and product development activities which have environmental influence. British Standardization Institute was the foremost body to create standards for environmental management systems. Nevertheless, the most distinguished and most exercised standards of environmental management are the ISO standard (Wilkinson & Dale, 1999, p 100). ... This had led to the evolution of environmental management system standards (Wilkinson & Dale, 2002, p 285). The rationale behind the formation of standards for environmental management system is to endow companies with an efficient system for administrating services, and product development activities which have environmental influence. British Standardization Institute was the foremost body to create standards for environmental management systems. Nevertheless, the most distinguished and most exercised standards of environmental management are the ISO standard (Wilkinson & Dale, 1999, p 100). Integrated Management Systems The development of management system standards started with the creation of quality management. However, with the passage of time, several management systems have evolved comprising of a broad range of organizational aspects. The rising number of management systems had resulted in the model of integrated management systems that brings about the amalgamation of a nu mber of individual management systems. The thought behind the theory of integrated management system is that a company can handle its business operations by means of an integrated structure instead of using many individual systems. The integration of quality management, environmental management systems and the occupational health & safety management system is the most common structure in the integrated management systems. This concept became applicable with the publication and implementation of ISO 14000 in addition to other standards (Zutshi & Sohal, 2005, p 213). Benefits of Integrating There are various benefits that an organization can enjoy as a result of integrating its different management systems. This is because the quality,

Linguistics - structure and meaning in literary discourse Essay - 1

Linguistics - structure and meaning in literary discourse - Essay Example Throughout the novel, the novelist has been careful in adroitly interlinking the different subplots. The novel mainly deals with two parallel plots: the love relation between Charles Darnay and Lucy Manette and the historical events connected with French Revolution. However, there are several other underlying subplots distributed throughout the three Books of the novel. They include the story of the great sacrifice by the good-for-nothing lawyer Sydney Carton, the comparison between the two cities of London and Paris, the atrocities of the aristocrats etc along with the stories within story such as the imprisonment of Dr. Manette, the story of Madame Defarge. The overall setting of the novel is based on these interconnected subplots which contribute to the each other as well as to the meaning of the novel in general. The novelist has been effective in presenting the major themes of the novel through the literary device of setting. It means that the setting of the novel which incorpor ates the interrelated subplots functions as a literary device to the novelist in his ultimate conveyance of the major themes. Therefore, the subplots in A Tale of Two Cities work in relation to each other to reveal the major themes of the novel. In other words, different subplots and the structure of the novel has significant role in the transference of the themes and meaning. As George Newlin establishes, â€Å"The success  of  A  Tale  of  Two  Cities †¦ can be attributed to Dickens’s artful setting  of  a  touching human story against the background  of  the world-shaking events  of  the French Revolution, and to its powerful, universal themes.† (Newlin, 1) There is pertinent relation between the setting and the meaning in A Tale of Two Cities and the novelist proficiently selects the subplots which contribute eventually to his literary goal. Therefore, subplots in the novel cannot be comprehended in isolation. Rather, they are deeply contrived so as to

Individual report based on an observation of an establishment Essay

Individual report based on an observation of an establishment - Essay Example Observation of the Hawthorn effect In order to examine the Hawthorne effect specific tests are performed. These tests mainly included examining the efficiency level of the employees. The employees and staff were informed beforehand that their actions will be kept under observation for the purpose of conducting successful experiments (Abratt, Beffon and For, 2011). Two different sets of experiments are performed one without the acknowledgement of the participants and one with the acknowledgement of the participants. The experiment indicated that the there is marked difference between e two experiments. So it can be concluded that Hawthorn effect was present in the observations. Details of the Hyatt Regency Different kinds of accommodations are available at Hyatt. Some of the types of rooms are standard rooms, triple or family rooms and suite. The hotel is present in 7 different international countries. Altogether there are about more than 500 plus bedrooms in Hyatt. Some of the well k nown brands are Park Hyatt, Andaz, Grand Hyatt, Hyatt Regency and many more. The hotel offers a diverse range of facilities starting from plush services like room services, online hotel and resort booking services, bag drops and pulls, dining and cuisine, baby sitting services, bell services, business centre services, concierge services, and currency exchange services (Aiken and West, 2001). The other kinds of services are engineering services, exhibit halls, food and beverage services, gift certificates. The different types of clubs, lounges and restaurants are Regency Club, Peppercorn Duck Club, Skies Restaurant, the Terrace restaurant, Coffee Express, Market segment of Hyatt Regency Table 1: Market segment of Hyatt Amerisuites Corporate business and family weekend leisure traveller, 30 to 59 years of age, 50% male/50% female, Household income $85,000+ Park Hyatt High income, Professionals, high level executives, celebrities Grand Hyatt Upper to high level income, Professionals, s enior and mid-level executives, upscale meetings, Hyatt Regency Middle to upper income, Professional, managerial, convention groups, Hyatt resorts Middle to upper income depending on branding, Professionals, mid to senior level executives, meetings and incentive groups Spa Hyatt Culturally sensitive acknowledging deep local customs and traditions Hyatt vacation club Middle to upper income, University educated with post-graduate degree courses Source: (Anderson and Mittal, 2002) Details of the information gathering process The resorts and hotels of Hyatt are connected to a central server of each hotel. The central servers are connected to each other in a network of interlinked and interconnected system. All the hotels and resorts of Hyatt use as single source software which helps to create an inter link between the various departments as well as between hotels and resorts (Berman and Evans, 2007). The implementation of the central reservation system at Hyatt has led to a record incre ase in the number of rooms sold (almost 31%). Whereas the industry average indicates that the number of rooms sold increased by only 20% to 25% (Craig and Douglas, 2005). The central reservation system is used for collecting information like the operational efficiency and revenue generation. The diagram given below gives an indication of the grading system of restaurant. Fig 2: Auditing process of restaurants Source: (Anderson and Sullivan, 2002) B Details of the administrative and accommodation departments The different typ

Reasons to Immigration to America Essay Example | Topics and Well Written Essays - 1000 words

Reasons to Immigration to America - Essay Example Till date, one can find traces of both cultures in every nook and corner of the country. The case for this paper is that of America. As a country, America has been blessed with the great 'salad bowl' syndrome, wherein it enjoys a plethora of people who have come to the shores of this great country in search of opportunity. The basic reason for people migrating to a certain part of the world is the lure of opportunity as opposed to whatever threat might have met them in their home land. In this regard, the paper will discuss the work of Ronal Tataki, as he sets about describing the mindset of the Irish Americans who came to set up homes in America. Also, this paper will use the work of Jon Gjerde who has described the attitudes of the German Americans from the Strearn County. These works have been used in order to demonstrate the expectations of the people from various quarters like Scandinavia, Germany and Ireland, as they migrated to America. The quintessential 'land of opportunity' called America enjoyed the Irish as its oldest settlers when they came forth to call America their home during the traumatic 1840s. A simply set of people, they came under tremendous pressure due to the potato blights that started from the year 1840 only to gain momentum in 1847. The final blow was rendered to the Irish when the population began to dwindle and the remaining people began to succumb to various diseases like typhus and fever. (Hovi, 2001) The Irish, with their minimal skill sets and predominantly rural exposures owing to a similar background filled with farming and allied activities, settled mostly around areas New York, the Great Lakes, Mid West as well as San Francisco and New Orleans. (Hovi, 2001). These people took to growing urbanization that was found in most of the cities enumerated above, despite their rural experiences. Thus, they managed to attract some sort of culture, which in turn refined them and put them in a position to command more respect. This helped them develop into a business class with the growing opportunities that the civil war later presented. It was found that in the beginning, the Irish settled for jobs that involved high work load due to their inadequacy when it came to experience and training in arts that were fast becoming a part of the urban world. According to Tataki, in general these people came to America looking for prosperity and some amount of respect attached with the same which they more or less achieved by virtue of being one of the oldest settlers in the land. Scandinavians The Scandinavians are probably as old as their Irish counterparts when it comes to migration. Having come from further up north, these people had a tendency towards desiring the more simple things in life. The Scandinavians came in droves basically from Norway. According to records and other original documents, the years between 1825 and 1914 saw the highest number of immigrants coming in from any country in Europe, with 750,000 people migrating to America from Norway alone. (Hovi, 2001). The primary reasons for Scandinavians moving to America were economic in nature. As a country, Norway had suffered extreme economic crises in the 19th and 20th centuries. This propelled the people into a mood of despair and bitter feelings. With nowhere else to go, the only ray of hope came from America. This held true for Sweden and Finland as well, where the people

Case Study Example | Topics and Well Written Essays - 1250 words - 8

Case Study Example The criminal justice policies in the United States of America are guided by the 1967 Presidents Commission on Law Enforcement and Administration of Justice. One of the greatest and ground breaking achievements of this group was the publication of a report named The Challenge of Crime in a Free Society (Cole Smith & DeJong, 2014). The report has over 200 recommendations pertaining to the US Criminal Justice policies. These recommendations were a part of the comprehensive approach of the commission towards preventing and fighting against the crime in the country. Few of the recommendations made by the commission could find their place in the Omnibus Crime Control and Safe Streets Act of 1968. It was advocated by The President’s Commission that with those recommendations the coordination between the enforcement force, courts and the correctional agencies has seen a great improvement. It is pointed by the Commission that criminal justice is the mean through which both society and the individuals in the country is protected from any crime. The crime committed was a robbery. The victim, Mr. Milton Brown, was robbed at the gunpoint by two assailants named Bertha Bloutt and William Bloutt in Broadway and First Avenue on 11 October 2011. The assailants have robbed the cash that Mr. Brown was taking from the daily deposits of his store BJ Shoes along with his wallet and the car keys1. Mr. Brown reported this crime to Winston police department. It is mandatory that all the criminal justice process follow a sequential approach to reach the justice2. In this section of the essay the sequence of the criminal justice system will be discussed based upon the chosen case study involving the robbery of cash from Milton Brown and the accused are Bertha Bloutt and William Bloutt. Mr. Brown reported the crime for which he became the victim to the Winston police department, which Case Study Example | Topics and Well Written Essays - 1000 words - 30 Case Study Example Customers have since identified the company with high-quality products. The wide range of products ensured they capture a large market share. The company has sought to market its brand using several methods that have seen it grow profoundly. With only about two decades since its inception, the management team has tirelessly worked to see the business gain dominance in the industry. With over $200 million invested each year for the last five years, the company has entrenched itself quite well in the market. The management realized that spending considerably in sport sponsorship as well as in advertisements would make it identify itself in the target market. This has since been done through organizing and sponsoring numerous sport events. In the process, printed jerseys with the company logo have caught the targeted customers’ attention. Additionally, the company has used several media platforms to advertise and reach out to their target market. Electronic media have been mounting intensive campaigns that seek to promote the company’s brand and ‘Protect This House’ is among them. UnderAmour understands that having clear and effective distribution channels is critical to market success. It is for this reason that it has availed its products in over twenty five thousand retail outlets all over the globe. A large portion of UnderAmour’s products pass through wholesale before getting to the retailers who avail them to the consumers. Between 2011 and 2013, large sales of about seventy percent came from the intermodal sales made to large store retailers. Moreover, the company also engages in ‘direct to consumer sales’. This involves enabling consumers to directly acquire the products from the stores within the factory. An equally big percentage has been recorded through this; the highest being thirty percent. Worth noting is the e commerce trade in which customer can order or products and shop online. The company has also

Love in Infant Monkeys Analysis Essay Example for Free

Love in Infant Monkeys Analysis Essay A mother can impact lives greatly. Could you imagine growing up without a mother? You can either be very lucky with a mother that cares for you or be deprived of that sense of love from a mother figure. It is inhumane to destroy any kind of maternal bond because mothers are not people to depend on, but are people to make depending not required. In my opinion, Harry doesn’t understand the true meaning of mothers earlier in the story but does get they have some sort of value. The repercussions of this lie in the story. Many times he brings up mothers whether it’s with his sick wife or the infant monkey’s mother. Harlow must not think much of mothers in general based off of what was said in the story, â€Å"Mother’s are useful, †¦in scientific terms† (Harlow 310). A solid explanation is the fact that he obviously does not totally understand the strip down meaning of mother. Harlow is now drawing a very small part of the very big picture, â€Å"They have intrinsic value, even beyond their breast milk. Call it their company† (Harlow 310). He gets that mothers naturally belong and that they are sort of important to the people they need to influence and care for, no matter if they are human or not. However, at this point in the story he doesn’t comprehend the true values of mother. Harlow later in the story conducts an experiment with an infant monkey and its mother that should give him closure about his hypothesis. Without compassion he begins tests, â€Å"Anxiety first, shown in trembling and shaking; then come the screams† (311). This examines Harlow and his lack of realization and empathy towards mothers and how they have essentials that are beyond scientific. Slowly though, he begins to show and give in to his inner feelings about mothers. It takes a few experiments for him to realize â€Å"Time after time, baby monkeys return. Bad mother is better then none† (312). It took time and cruel methods but Harlow is almost at the point where he accepts the true meaning of Mother. The turning point was the â€Å"Deep swig† (Millet 314). In his drunken self-conscience the truth was released. He began to fathom the underlying details that he couldn’t pick up from his time with the monkeys earlier. Still trying to hold on to thoughts put into his mind, â€Å"He mistook each infant monkey for a beloved soul. In that way the nightmare was confusing† (Millet 314). As you can see it is still in his conception not to believe himself that what he was doing was wrong. This is a battle between his self-conscience and what he was taught to believe. Finally, actuality kicked in, â€Å"He saw each infant in the heart of its mother, precious, unique, held so close because the mother was willing to die for it.† (314). What Harlow saw was the absolute certainty of what his inner being was desperately attempting to communicate to him. It was that he was wrong. The test subjects before him were real living things just like himself. The mother is a complex creature proven throughout the story. These actions all help express why mothers and their presence are so important. As shown, they are very crucial in the development of younger beings. The mother is a helper by nature, impacting by teaching its child to survive at life. Independence is the arch lesson that is taught by the mother. Harlow enduringly grasps the cardinal meaning of why it is inhumane to destroy any kind of maternal bond. Mothers are not people to depend on, but are people to make depending not required.

Hdfc Bank Essay Example for Free

Hdfc Bank Essay The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George). Many other financial activities were added over time. For example banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks are the primary owners of industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of cross share holding entity known as zaibatsu. In France Bancassurance is highly present, as most banks offer insurance services (and now real estate services) to their clients. 1.2 DEFINITION: The definition of a bank varies from country to country. Under English law, a bank is defined as a person who carries on the business of banking, which is specified as: †¢ Conducting current accounts for his customers †¢ Paying cheques drawn on him, and †¢ Collecting cheques for his customers. 1.3 OBJECTIVE OF THE STUDY: The Objective of this on the job training is to study the importance of the potential customers and their value to the bank and creating the awareness among them about the importance of current accounts and keep a good relationship with them for the bank’s benefit. 1.4 ORIGIN OF THE BANK: The name bank derives from the Italian word banco desk/bench, used during the Renaissance by Florentines bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in ancient times. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Rome- that of the Imperial Mint. 1.5 PRESENT STATUS OF THE BANK: Worldwide assets of the largest 1,000 banks grew 15.5% in 2005 to reach a record $60.5 trillion. This follows a 19.3% increase in the previous year. EU banks held the largest share, 50% at the end of 2005, up from 38% a decade earlier. The growth in Europe’s share was mostly at the expense of Japanese banks whose share more than halved during this period from 33% to 13%. The share of US banks also rose, from 10% to 14%. Most of the remainder was from other Asian and European countries. . The US had by far the most banks (7,540 at end-2005) and branches (75,000) in the world. The large number of banks in the US is an indicator of its geography and regulatory structure, resulting in a large number of small to medium sized institutions in its banking system. Japan had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy had more than 30,000 branches each—more than double the 15,000 branches in the UK. 1,6 FUTURE OF THE BANK : The future is integration as people will have less time for banking. People will want to process more transactions on the Internet. There will be more activity in terms of applications and services on the mobile. Geography will not be an inhibitor any more as everything is executable on the Net. Integration is the next real big thing. As a customer you will want a one-stop shop that will take care of all your needs. For instance people will want to buy their mutual funds, redeem their mutual fund, buy insurance policies, renew policies, buy cinema tickets, railway tickets, and numerous similar transactions through the bank. The ATM will still serve as a cash dispensing medium, but the Internet and mobile will be very active. [pic] 2.1 ORIGIN OF THE ORGANIZATION : H.D.F.C was set up on 17th October, 1977 by I.C.I.C.I. out of the consideration that a specialized institution was needed to channel household savings as well as funds from the capital market into the housing sector. H.D.F.C. has emerged as the largest mortgage finance institution in the country. The main objective of H.D.F.C. is to develop significant expertise in retail mortgage loans to different market segments and to have a large corporate client base for its housing related credit facilities. The main aim of H.D.F.C. is to support or aid in the promotion of home ownership. H.D.F.C. is Indias leading housing finance company and for all practical purposes is synonymous with the domestic housing finance industry. The primary objective of H.D.F.C is to enhance residential housing stock and promote home ownership. One of its major objectives is to increase flow of resources for housing through the integration of housing financial institutions with the domestic market. H.D.F.C. has developed a strong market reputation large shareholder base and unique consumer franchise. H.D.F.C. is Indias premier housing finance company in India as well as in international markets. It has maintained a consistent and healthy growth in its operations to remain the clear market leader in mortgages in India. The company has been constantly engaged into innovation and innovative practices since its birth. 2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION: HDFC Bank reported a 43 percent growth in net profit at Rs.75.5 crore for the third quarter ended December 31, 2001, as against Rs 52.8 crore in the corresponding quarter previous fiscal. The jump in net profit was primarily due to other income which almost doubled to Rs 85.5 crore from Rs 47.5 crore. Speaking to analysts at a conference call today, January 15, 2002, Paresh Suthankar, head – credit risk and investments, reiterated the bank’s earlier guidance of a 25-30 per cent compounded annual growth rate (CAGR) in its top line for the next two to three years. The bank does not see any reason to revisit its guidance and stands by it. It expects the projections to hold true as long as the market environment is relatively stable and does not move to an extreme of either a boom or a total bottoming out. The bank is open to acquisitions as a vehicle of growth, but any growth via acquisitions would be over and above its projected growth rate of 25-30 per cent. At present, it is not working on any deal but there are acquisition prospects in the Indian scene, giving rise to opportunities for inorganic growth. The bank’s exposure to capital markets is around 6-7 per cent, against the Reserve Bank of India (RBI) norms of 5 per cent. The bank expects to bring it down to within the stipulated limit by the end of this fiscal. The bank has made a lot of headway in its retail thrust with retail accounts going up to 1.9 million from 1.4 million a year back. The branch network now stands at 147 outlets in 63 cities and the ATM network at 360 compared to 231 ATMs as on March 31, 2001. The debit card base is at six lakh. On the advances side, car loans have really picked up and now form almost 50 per cent of the total retail advances, with the remaining being accounted for by loan against securities and other loans. In fact in case of car loans, the bank now covers around 30 cities against just eight-nine a year back. 2.3 PRESENT STATUS OF THE ORGANIZATION: HDFC Bank Limited provides various financial products and services. It operates in three segments: Personal Banking, NRI Banking, and Wholesale Banking. The Personal Banking segment provides savings, and current and fixed deposit accounts. It also offers personal, home, two wheeler, new car, used car, gold, education, healthcare, commercial vehicle, working capital, construction equipment, and warehouse receipt loans. In addition, this segment provides safe deposit lockers; credit, debit, and prepaid cards; mutual funds, general and health insurance, bonds, and equities and derivatives products; and forex and payment services. The NRI Banking segment’s deposit products include rupee savings accounts, rupee current accounts, rupee fixed deposits, foreign currency deposits, and accounts for returning Indians. Its loan products comprise home loans, loans against securities, loans against deposits, and gold credit cards. The Wholesale Banking segment offers funded services, which consist of working capital finance, short term finance, bill discounting, and export credit; and non-funded services, such as letters of credit, bank guarantees, and collection of documents to corporations, and small and medium enterprises. It also various services to banks, financial institutions, mutual funds, stock brokers, insurance companies, commodity businesses, and trusts. As of March 31, 2008, it had a network of 761 branches and 1,977 automated teller machines in 327 cities in India. [pic] 2.4 FUNCTIONAL DEPARTMENT OF THE ORGANIZATION: HDFC Bank Limited is located in New Friends Colony, New Delhi. This organization Includes functional departments as follows: 1. Current Account Department 2. Saving Account Department 3. Trade Department 4. Salary Department 5. Cash Department 6. Demat Account Department 2.5 ORGANIZATION STRUCTURE AND CHART: [pic] 2.6 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION: HDFC Bank mainly provides three kinds of banking services: †¢ Personal Banking †¢ NRI Banking †¢ Wholesale Banking The following are the products and services provided by the HDFC bank HDFC Bank provides loans like Personal Loans , Home Loans , Educational Loans , Two Wheeler Loans , New car Loans, Used Car Loans, Overdraft Against Car, Express Loans, etc. HDFC Bank provides Credit, Debit and Prepaid Cards to help you meet your financial objectives. HDFC Bank provides facilities like Mutual Funds, Insurance, General Health Insurance, Bonds, Financial Planning, Knowledge Center, Equities Derivatives, and Mudra Gold bar. If you need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer funds to India, make payments etc., HDFC Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner. With HDFC Bank’s payment services, you can bid goodbye to queues and paper work. HDFC’s range of payment options make it easy to pay for a variety of utilities and services. HDFC Bank provides many types of accounts like: †¢ Saving Account †¢ Current Account †¢ Demat Account †¢ Salary Account HDFC Bank has designed two programs to make banking easier for the customers and they are †¢ HDFC Bank Preferred Programme †¢ HDFC Bank Classic Programme. HDFC Bank offers Private Banking services to high net worth individuals and institutions. HDFC Bank offers you quick, economical and convenient options to remit and transfer funds to India. Corporate Banking reflects HDFC Bank’s strengths in providing our corporate clients in India, a wide array of commercial, transactional and electronic banking products. HDFC Bank acts as an active medium between the government and the customers by means of various services. 2.7 CURRENT ACCOUNT IN DETAIL: Features Benefits: [pic]Free Account to account funds transfer between HDFC Bank accounts Free payment and collection through RTGS. Free payment and collection using NEFT (through Net banking) Free up to 50 Demand Drafts per month and can be issued from any HDFC Bank Branch Free up to 50 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. Free anywhere collection payment transactions (clearing) within HDFC Bank branch network (except Dahej), up to Rs.100 lacs per month. Convenience to withdraw deposit cash at all our branches* Free 300 At Par cheques leaves per month. Register for InstaAlert service and receive updates on your account as and when the select transaction happens all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash Cheque Pickup and Cash Delivery, through a reputed agency. Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that helps you check your balance transaction details, find out the status of your cheque or stop cheque payment. Fees Charges for Plus Current Account: Minimum Balance (Average Quarterly Balance)-Rs. 100,000/- Non-Maintenance Charges per quarterCharge of Rs.6,000/- per quarter, if AQB is less than Rs.50,000/- Charge of Rs.1, 500/- per quarter, if AQB is less than Rs. 100,000/- but = Rs. 50,000/- Cheque Book Charges (Issued by Bank)-Payable-at-par Free 300 cheques leave per month. Charges Rs 2/- per leaf beyond 300 leaves Remittance facility through own Bank: Demand Drafts (DD) payable HDFC Bank Locations (Issued from any branch) / Duplicate DDFree up to 50 DDs per month. Above 50 transactions, charges @ Rs. 25/- per Demand draft Pay Orders (PO) on HDFC Bank Locations (Issued from Any Branch) / Duplicate PO Free up to 50 POs per month. Above 50 transactions, charges @ Rs. 25/- per Pay-order Issuance of DD/ PO through Phone BankingAll standard charges for DD / PO are applicable as above. Only DD / PO amount up to Rs 500,000/- are accepted at Phone banking. DD/PO-Cancellation/RevalidationRs.50/- per instrument NEFT/EFT Transactions: Payments-Free CollectionsFree RTGS Transactions: Payments-Free CollectionsFree Local Transactions (At home branch location) : Local cheques collections paymentsFree Account to Account Fund Transfer within HDFC Bank- Free Anywhere Transactions (except Dahej) Account to Account Fund Transfer within HDFC Bank-Free Payments Collections at HDFC Bank Locations-Free up to Rs.100 lacs per month, beyond which charges @ Rs. 0.50/1000, min Rs. 25 Bulk Transaction ChargesAll transactions are subject to a maximum of 250 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied. Includes all Local / Anyhwere clearing and transfer transactions Remittance facility through other Bank: Issue of Demand Drafts (DD) / Duplicate DD (Correspondent tieup)Rs.2.00 per Rs.1000/- Minimum Rs.50/- DD-Cancellation / Revalidation-Rs.50/- per instrument Cheque Collection: Outstation through own bankCollection: Free, only courier charges of Rs 20 per instrument Outstation through another bank (Correspondent bank locations) : Rs.4/- per Rs.1,000/-, min Rs.50/-For Clean locations (non-correspondent bank locations) Non-MICR Cheques: Rs.6.5/- per Rs.1,000/-, min Rs 50 (inclusive of courier charge of Rs 25) Cash Transactions : 1. Cash Deposit Cash Deposit-Home Branch Location-Free up to Rs.10 lacs per month or 50 transactions which ever is lower, Deposit in excess of Rs.10 lacs or 50 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home-branch city subject to limit of Rs.100, 000/- per account per day) Cash Deposit -Non Home locationMaximum Rs.100, 000/- per day. Charges @ Rs. 3/1000, min Rs. 50 2. Cash Withdrawal Cash Withdrawal-Home BranchFree at Home Branch Cash Withdrawal-Non Home Branch-Intercity IntracityFree up to Rs.50,000/- per day, beyond which charges @ Rs.2/1000, min Rs.50/- (Only for incremental amount), Third party cash withdrawal allowed only up to maximum Rs. 50,000/- per transaction. Features Benefits [pic]Free Account to account funds transfer between HDFC Bank accounts. Free RTGS/NEFT Transactions. Free up to 30 Demand Drafts (DD) per month and can be issued from any HDFC Bank Branch. Free up to 30 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. Free anywhere collection payment within HDFC Bank branch network (except Dahej), up to Rs.50 lacs per month. Convenience to withdraw deposit cash at all our branches* Free 200 At Par cheque leaves per month. Register for InstaAlert service and receive updates on your account as and when the select transaction happens all this without visiting the branch or ATM! Fees Charges for Trade Current Account [pic]Description of Charges Minimum Balance (Average Quarterly Balance) -Rs. 40,000/- Non-Maintenance Charges per quarterCharge of Rs.1,200/- per quarter, if AQB is less than Rs.40,000/- Cheque Book Charges (Issued by Bank) -Payable-at-par 200 cheques leave Free per month. Charges Rs 2/- per leaf beyond 200 leaves Remittance facility through own Bank Demand Drafts (DD) payable HDFC Bank Locations (Issued from any branch) / Duplicate DD Free up to 30 DDs per month. Above 30 transactions, charges @ Rs. 25/- per Demand draft Pay Orders (PO) on HDFC Bank Locations (Issued from Any Branch) / Duplicate PO Free up to 30 POs per month. Above 30 transactions, charges @ Rs. 25/- per Pay-order Issuance of DD/ PO through Phone Banking All standard charges for DD / PO are applicable as above. Only DD / PO amount up to Rs. 500,000/- are accepted at Phone banking. DD/PO-Cancellation/Revalidation-Rs.50/- per instrument NEFT/EFT Transactions: PaymentsFree CollectionsFree RTGS Transactions : PaymentsFree CollectionsFree Local Transactions (At home branch location) Local cheques collections payments-Free Account to Account Fund Transfer within HDFC Bank -Free Anynhwere Transactions (except Dahej) Account to Account Fund Transfer within HDFC BankFree Payments Collections at HDFC Bank LocationsFree up to Rs.50 lacs per month, beyond which charges @ Rs. 0.50/1000, min Rs. 25 Bulk Transaction Charges All transactions are subject to a maximum of 150 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied. Includes all Local / Anywhere clearing and transfer transactions. Remittance facility through other Bank Issue of Demand Drafts (DD) / Duplicate DD (Correspondent tie up) Rs.2.00 per Rs.1000/- Minimum Rs.50/- DD-Cancellation / Revalidation-Rs.50/- per instrument Cheque Collection Outstation through own bankRs. 0.50/1000, min Rs. 25 per instrument Outstation through another bank-Correspondent bank locations: Rs.4/- per Rs. 1, 000/-, min Rs.50/-For Clean locations (non-correspondent bank locations) Non-MICR Cheques: Rs.6.5/- per Rs.1,000/-, min Rs 50 (inclusive of courier charge of Rs 25) Cash Transactions 1. Cash Deposit Cash Deposit-Home Branch Location Free up to Rs.5 lacs per month or 40 transactions which ever is lower, Deposit in excess of Rs.5 lacs or 40 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home branch city subject to limit of Rs. 50,000/- per account per day) Cash Deposit -Non Home location Maximum Rs.50, 000/- per day. Charges @ Rs. 3/1000, min Rs. 50 2. Cash Withdrawal Cash Withdrawal-Home Branch Free at Home Branch Cash Withdrawal-Non Home Branch-Intercity Intracity Free cash withdrawals up to Rs.50, 000/- per day, beyond which charges @ Rs.2/1000, min Rs.50/- (Only for incremental amount), Third party cash withdrawal allowed only up to maximum Rs. 50,000/- per transaction. HDFC Bank Trade offers you a host of features that sets it apart from regular Current Accounts that most banks offer. They are: Free inter-city clearing between HDFC Bank branch locations (except Dahej) up to Rs.50 lakhs per month. Free Accounts to account funds transfer between HDFC Bank accounts, inter-city. Free up to 30 Pay-orders per month. Free up to 30 demand-drafts per month. Free RTGS NEFT Transactions. Features Benefits Free anywhere collection payment within HDFC Bank branch network (except Dahej), up to Rs.25 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1,000/-, min Rs.25/- Free NEFT Transactions. Free RTGS collection. RTGS payment @ Rs.100/- per transaction. Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions. Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at flat cost of Rs.40/-. DDs above Rs.50,000/- up to Rs.100,000/- at nominal cost of Rs.25/- and can be issued from any HDFC Bank Branch . Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of Rs.40/-. POs above Rs.50,000/- up to Rs.100,000/- at nominal cost of Rs.25/- and can be issued from any HDFC Bank Branch . Free 100 At Par cheque leaves per month Register for InstaAlert service and receive updates on your account as and when the select transaction happens all this without visiting the branch or ATM! Fees Charges for Premium C/A Description of Charges Minimum Balance (Average Quarterly Balance) -Rs. 25,000/- Non-Maintenance Charges per quarterCharge of Rs.900/- per quarter, if AQB is less than Rs.25, 000/- Cheque Book Charges (Issued by Bank) Payable-at-par100 cheques leaves Free per month. Charges Rs 2/- per leaf beyond 100 leaves Other Current Account facilities Issue of Duplicate / Adhoc Statement Branch: Rs 100/- per statement * Phone Banking: Rs 50/- per statement (Non IVR) and Rs 30/- per statement (IVR) Net Banking: Rs 30/- per statement ATM Mobile Banking: Rs 50/- per statement. Mode of calculation of minimum average quarterly balance Average of daily closing balances of each day spread over a period of three months. Remittance facility through own Bank Demand Drafts (DD) payable HDFC Bank Locations (Issued from any branch) / Duplicate DD DD Amount Up to Rs. 50,000 charges Rs. 40/- per DD, Above Rs. 50,000 and up to Rs. 100,000- Rs. 25/-, Above Rs. 100,000- Free Pay Orders (PO) -on HDFC Bank Locations (Issued from Any Branch) / Duplicate PO PO amount Up to Rs. 50,000 charges Rs. 40/- per PO, Above Rs. 50,000 and up to Rs. 100,000 Rs. 25/-, Above Rs. 100,000- Free Issuance of DD/ PO through Phone Banking: All standard charges for DD / PO are applicable as above. Only DD / PO amount up to Rs 500,000/- are accepted at Phone banking. DD/PO-Cancellation/RevalidationRs.50/- per instrument NEFT/EFT Transactions: PaymentsFree Collections-Free RTGS Transactions: PaymentsRs. 100/- per transaction Collections-Free Local Transactions (At home branch location) Local cheques collections payments-Free Account to Account Fund Transfer within HDFC Bank -Free Anywhere Transactions (except Dahej) Account to Account Fund Transfer within HDFC Bank Rs.15/- per transaction Payments Collections at HDFC Bank Locations Free up to Rs. 25 lacs per month, Charges at Rs.1.50/1000, min Rs. 25 Bulk Transaction Charges: All transactions are subject to a maximum of 100 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied. Includes all Local / Anywhere clearing and transfer transactions. Remittance facility through other Bank: Issue of Demand Drafts (DD) / Duplicate DD (Correspondent tie up) -Rs.2.00 per Rs.1000/- Minimum Rs.50/- DD-Cancellation / Revalidation-Rs.50/- per instrument Cheque Collection: Outstation through own bank Rs.2.50 per Rs.1, 000/- for Cheques drawn on HDFC Bank Locations, min Rs. 50 per instrument. Outstation through another bank Correspondent bank locations: Rs.4/- per Rs.1, 000/-, min Rs.50/-For Clean locations (non-correspondent bank locations) Non-MICR Cheques: Rs.6.5/- per Rs.1, 000/-, min Rs 50 (inclusive of courier charge of Rs 25) Cash Transactions 1. Cash Deposit Cash Deposit-Home Branch Location Free up to Rs.3 lacs per month or 25 transactions which ever is lower, Deposit in excess of Rs.3 lacs or 25 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home branch city subject to limit of Rs. 25,000/- per account per day) Cash Deposit -Non Home location Maximum Rs.25, 000/- per day. Charges @ Rs. 3/1000, min Rs. 50 2. Cash Withdrawal Cash Withdrawal-Home Branch-Free at Home Branch Cash Withdrawal-Non Home Branch-Intercity Intracity Free cash withdrawals up to Rs.25,000/- per day, beyond which charges @ Rs.2/1000, min Rs. 50/- (Only for incremental amount), Third party cash withdrawal allowed only up to maximum Rs.50,000/- per transaction. With HDFC Bank Flexi Current Account your Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in your Current Account. So, during peak seasons, you get the benefit of higher transaction limits due to the higher average balances maintained in your account. What’s more, during lean seasons, you need not bother about maintaining huge balances to enjoy high transaction limits, which you anyway may not need. Flexi Current Account requires you to maintain a minimum Average Monthly Balance (AMB) of just Rs. 75,000. Features Benefits Enjoy dynamic free limits on Intercity Payments, Collections Funds Transfer as well as Cash Deposit at home location branches based on the AMB maintained* For example, you maintain an AMB of Rs.2,00,000/- in a particular month. Your dynamic free transaction limits for that month would be as per the following table: [pic] TransactionDynamic Free Limits* Cash Deposit at Home Branch Location Anywhere Payments, Collections Funds Transfer (except Dahej) Free up to Rs.1, 00, 00,000/- in that particular month Pay your vendors on a real time basis using Real Time Gross Settlement (RTGS) available across 23,000 Bank Branches*. What’s more, payments and collections through RTGS are completely free! Make and receive remittances to from your vendors customers across 20,000 + Bank Branches of more than 50 Banks through Net Banking using National Electronic Fund Transfer (NEFT), Absolutely Free! Free 40 Demand Drafts Free 40 Pay Orders issued from any HDFC Bank Branch* Convenience to withdraw and deposit cash at all our branches*. Competitive pricing on Demand Drafts drawn on Correspondent Banking Locations as well as Outstation Cheque Collection at HDFC Bank Locations InstaAlert service receive updates on your account as and when the select transaction happens – all this without visiting the Branch or ATM! The top position is always the coveted position. With the Apex current account, take your business to a new high. On maintaining an average quarterly balance of Rs. 10 lakhs, this account makes sure you make the most of every business opportunities coming your way. Unlimited, free, anywhere Banking experience at the APEX is reserved for you. Features Benefits Maximum transactional benefits with faster mobilization of funds Average quarterly balance requirement of Rs. 10, 00,000/- Access to more than 750 branches Huge cost savings in inter-city transactions for payable-at-par cheque issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order Faster collection of outstation cheques Free Intercity Cheque Collection Payments within HDFC Bank Network (excluding Dahej). Free Account to Account funds transfer between HDFC Bank accounts. Free payment and collection through RTGS Free payment and collection using NEFT (through NetBanking) Free Demand Drafts which can be issued from any HDFC Bank branch Free Pay Orders which can be issued from any HDFC Bank branch Convenience to withdraw and deposit cash at all our branches* Free Cash Deposit up to Rs. 100 lacs per month across all home branches (subject to a maximum of 50 transactions per month and a per day limit of Rs.1,00,000/- on cash deposit at a non home branch) Choice of local / Payable at Par Cheques. Free 500 leaves per month Register for InstaAlert service and receive updates on your account as and when the select transaction happens – all this without visiting the branch or ATM! . Fees and Charges for Apex Current Account:[pic] Minimum Balance (Average Quarterly Balance)Rs. 10, 00,000/- per quarter Non-Maintenance Charges per quarter:Charge of Rs.5,000/- per quarter if AQB is less than Rs.10,00,000 but greater than or equal to Rs. 5,00,000/-; Rs.10,000/- per quarter if AQB is less than Rs. 5,00,000/- Cheque Book Charges (Issued By Bank) Payable-at-par 500 cheque leaves free per month. Charges Rs 2/- per leaf beyond 500 leaves Other Current Account Facilities Issue of Duplicate / Adhoc StatementRs. 100 at Branch, Rs. 30 per statement through Net Banking and Phone Banking (IVR), Rs. 50 per statement through Phone Banking (non-IVR), ATM and Mobile Banking Mode of calculation of minimum average quarterly balanceAverage of daily closing balances of each day spread over a period of three months Remittance facility through own Bank Demand Drafts (DD) Payable at HDFC Bank Locations (Issued from Any branch)/ Duplicate DDFree without limit Pay Orders (PO) – on HDFC Bank Location (Issued from Any branch)/ Duplicate PO Free without limit Issuance of DD / PO through Phone Banking-Free without limit Only DD amount up to Rs. 5, 00,000 for Current Apex Account holders accepted at Phone Banking DD/PO-Cancellation/RevalidationRs.50/- per instrument NEFT/EFT Transactions: Payments-Free CollectionsFree RTGS Transactions: Payments-Free CollectionsFree Local Transactions (At home branch location) Local cheques collections paymentsFree Account to Account Fund Transfer within HDFC Bank-Free Anywhere Transactions (except Dahej) Account-to-Account Fund Transfer within HDFC BankFree Clearing Transactions-Collections Payment at HDFC Bank locations-Free Bulk Transaction Charges: All transactions are subject to a maximum of 500 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied. Includes all Local / Anywhere clearing and funds transfer transactions. Remittance facility through other Bank Issue of Demand Drafts (DD) / Duplicate DD (Correspondent tie up)-Free up to Rs 15 Lacs per month, beyond which charges of Rs. 1.50 per 1000, Minimum Rs. 50/- per instrument DD-Cancellation / Revalidation-Rs.50/- per instrument Cheque Collection Outstation Cheque collection on HDFC Bank Locations-Free Outstation Cheque Collection on non-branch locationsCorrespondent bank locations: Rs.3/- per Rs.1, 000/-, min Rs. 50/-. For Clean locations (non-correspondent bank locations) non-MICR cheques: Rs 4.5/- per Rs 1000/-, min of Rs 50 per transaction (includes courier charges) Cash Transactions 1. Cash Deposit Cash Deposit-Home Branch CityFree up to Rs. 100 Lakh per month or 50 Transactions whichever is lower. Deposit in excess of Rs. 100 Lakh per month or 50 transactions will be charged @ Rs.1/- per Rs. 1000/-, minimum Rs.50/-. (Cash deposit at non- home branches within home branch city subject to limit of Rs.1,00,000/- per account per day) Cash Deposit Non Home Branch City Charges @ Rs 3 per Rs 1000/-, minimum of Rs 50 per transaction. (Maximum deposit allowed up to Rs 1, 00,000/- per day) 2. Cash Withdrawal Cash Withdrawal-Home BranchFree. Cash Withdrawal-Non Home Branch-Intercity IntracityFree cash withdrawals up to Rs.2,00,000/- per day, beyond which charges @ Rs. 2/- per Rs.1000/-, min Presenting maximum benefits and minimum hassles for you with Max Current Account! With a Rs. 5 lakhs average quarterly balance requirement, we present to you a world of privileges that helps your business expand and grow. Features like maximum free transaction limits including other beneficial features on this current account truly enhances your business potential to the Maximum. Features Benefits Maximum transactional benefits with faster mobilization of funds Average quarterly balance requirement of Rs. 5, 00,000/- Access to more than 750 branches Huge cost savings in inter-city transactions for payable-at-par cheque issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order Faster collection of outstation cheques: Free Account to Account funds transfer between HDFC Bank accounts Free payment and collection through RTGS Free payment and collection using NEFT (through Net Banking) Free Demand Drafts which can be issued from any HDFC Bank branch Free Pay Orders which can be issued from any HDFC Bank branch Free anywhere collection payment (clearing) up to Rs. 5 Crore per month within HDFC Bank branch network (except Dahej) Convenience to withdraw and deposit cash at all our branches* Free cash deposit up to Rs. 50 Lakh per month across all home branches (subject to a maximum of 50 transactions per month and a per day limit of Rs.1, 00,000/- on cash deposit at a non home branch) Choice of local / Payable at Par cheques. 500 leaves free per month Register for InstaAlert service and receive updates on your account as and when the select transaction happens all this without visiting the branch or ATM! Fees and Charges for Max Current Account †¢ [pic]Description of Charges Minimum Balance (Average Quarterly Balance) Rs. 5, 00,000/- per quarter †¢ Non-Maintenance Charges per quarter Charge of Rs.3,000/- per quarter if AQB is less than Rs.5,00,000 but greater than or equal to Rs. 2,50,000/-; Rs.8,000/- per quarter if AQB is less than Rs. 2,50,000/- Cheque Book Charges (Issued by Bank) 500 cheques leave Free per month. Charges Rs. 2/- per leaf beyond 500 leaves †¢ Other Current Account facilities Issue of Duplicate / Adhoc Statement Rs. 100 at Branch, Rs. 30 per statement through Net Banking Phone Banking (IVR), Rs. 50 per statement through Phone Banking (non-IVR), ATM Mobile Banking Mode of Calculation of Minimum Average Quarterly Balance Average of daily closing balances of each day spread over a period of 3 months. Remittance facility through own Bank: Demand Drafts (DD) Payable at HDFC Bank Locations (Issued from Any branch)/ Duplicate DD Free without limit Pay Orders (PO) – on HDFC Bank Locations (Issued from Any branch)/ Duplicate PO Free without limit Issuance of DD / PO through Phone Banking Free without limit Only DD amount up to Rs. 5, 00,000 for Current Max Accountholders accepted at Phone Banking. DD/PO-Cancellation/Revalidation Rs.50/- per instrument NEFT/EFT Transactions: Payments-Free CollectionsFree RTGS Transactions: PaymentsFree Collections-Free Local Transactions (At home branch location) Local cheques collections paymentsFree Account to Account Fund Transfer within HDFC BankFree Anywhere Transactions (except Dahej) Account to Account Funds Transfer within HDFC BankFree Payments Collections at HDFC Bank Locations (except Dahej) Free up to Rs. 500 Lakh per month, beyond which charges @ Rs. 0.50/1000, min Rs.25/-. †¢ Bulk Transaction Charges All transactions are subject to a maximum of 300 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied. Includes all Local / Anywhere clearing and funds transfer transactions. †¢ Remittance facility through other Bank Issue of Demand Drafts (DD) / Duplicate DD (Correspondent tie up) Rs. 1.50 per 1000, Minimum Rs. 50/- per instrument DD-Cancellation / RevalidationRs.50/- per instrument †¢ Cheque Collection Outstation through own bankFree †¢ Outstation through another bank Correspondent bank locations: Rs.3/- per Rs.1, 000/-, min Rs. 50/-. For Clean locations (non-correspondent bank locations) Non-MICR Cheques: Rs. 4.5 per Rs.1, 000/-, min Rs. 50/- (inclusive of courier charge) Cash Transactions 1. Cash Deposit Cash Deposit-Home Branch City Free up to Rs. 50 Lakh per month or 50 Transactions whichever is lower. Deposit in excess of Rs. 50 Lakh per month or 50 transactions will be charged @ Rs.1/- per Rs. 1000/-, minimum Rs.50/-. (Cash deposit at non- home branches within home branch location subject to limit of Rs.1, 00,000/- per account per day) Cash Deposit Non Home City Maximum Rs.1, 00,000/- per day. Charges @ Rs.3/- per Rs.1,000/-, minimum Rs. 50/- 2. Cash Withdrawal Cash Withdrawal-Home BranchFree at Home Branch Cash Withdrawal-Non Home Branch-Intracity Intracity Free cash withdrawals up to Rs. 1,00,00/- per day, beyond which charges @ Rs. 2/- per Rs.1000/-, min Rs.50/- (Only for incremental amount), Third party cash withdrawal allowed only up to maximum Rs.50,000/- per transaction. 2.8 MARKET PROFILE OF THE ORGANIZATION: Company Profile:HDFC Bank Limited Ticker:500180 Exchanges:OTH BOM 2008 Sales:124,140,000,000 Major Industry:Financial Sub Industry:Commercial Banks Country:INDIA Employees:37836 3.1 STUDENT’S WORK PROFILE (ROLE AND RESPONSIBILITIES): I have completed my summer taining in HDFC Bank Limited as a SALES EXECUTIVE. During this training I played some roles and responsibilities are as: ROLE- I have worked as a sales Executive in sales department in HDFC Bank Ltd. My role was to buildup better relationship with Customers. HDFC Bank expects its employees to take up the work of opening current account in their respective locations. My main role was to contact customers and make deal for opening current account, in meeting with customers I represent a demo to customer for current account, are as: RESPONSIBILITIES- †¢ To generate leads for the Bank. †¢ To buildup better relationship with customers. †¢ To increase the sales of the Bank. †¢ To provide awareness about the current account. †¢ To achieve company’s target. 3.2 DESCRIPTION OF LIVE EXPERIENCE: Working with HDFC Bank It was a nice experience. When I entered into the bank, I was very nerves. However after entering I knew the real mean of working with the big organization. We need to follow the rules and regulations of the company. Coming at the exact time in the bank is very important. These things are very important which we need to learn : †¢ How should behave in the organization? †¢ How behave and coordinate with the customer? †¢ How we need to talk to our Boss, our superior and colleges? Working with the HDFC I increased my communication skills. Also I knew the Importance of the coordination among all the employees. All the employees are working as a team. When I was new, the entire employees helped me to learn the work culture HDFC Bank. In this company my work is to buildup the relationship with customers and to provide leads to the company for opening current account and making relationship with the bank. In present time the customers are not very well aware about the HDFC’s products. 3.3 STUDENT CONTRIBUTION TO ORGANIZATION: In this Company I am working as a Sales Executive. In this Organization my role is to buildup better relationship with Customers, and I promote the current account. My contribution towards this organization like: †¢ I provide leads everyday for opening current account. †¢ I make good relationship between Bank and customers. †¢ I provide awareness about the current account through some demos and calling. †¢ I help in making some useful marketing strategies. 1. RESEARCH INSTRUMENT : A questionnaire was prepared with the relevant questions consisting mainly of closed end questions especially dichotomous type which offered the respondents between only two alternatives either (Yes/No). The respondents were personally met and the collection of information was properly administered to avoid non-respondent error. The primary data is collected by cold calling from respected place of branch. The data is collected by using a questionnaire, which is given as an Appendix at the end of this report. 2. SOURCE OF DATA : The study is based on both primary and secondary data. Most of the findings are based on the data collection through interaction with customers. A structured disguised questionnaire is prepared together the information. Close as well as open-ended questions are asked. Some multiple-choice questions are also included. 3. RESEARCH DESIGN AND METHODOLOGY: Main Methodology -: Collection of Primary data (Consumer and Market Research) through Personal Questionnaires Collection of Secondary Data (Study of various Current Account) through Computer Data, Web sites, Books and Magazines. FIELDWORK: The respondents are personally interviewed, for about 3 to 5 minutes on an average to collect the data. The format prepared beforehand was strictly adhered to. Though it was sufficient in itself and could be matched to prospective respondents, personal interviews are conducted to be able to make first hand observation that would reveal some useful information about the subject of study. RESEARCH ANALYSIS: After the collection of data I have categorize the data into – †¢ Primary Data †¢ Secondary Data As we know the data collected in primary mode is more reliable in the comparison of secondary data. So we depend more on the primary data. SOURCES OF PRIMARY DATA: †¢ Survey †¢ Personal SOURCES OF SECONDARY DATA: †¢ Through internet †¢ Branch manager approvals †¢ Personal vehicle dealers †¢ Brochure of the bank 4. SUMMARY OF FINDINGS: The Housing Development Finance Corporation Limited was introduced in 1994, after the Reserve Bank of India approved private sector banking. Operating in over 300 Indian cities, HDFC Bank has over 700 branches and 1600 ATMs. It offers personal, NRI and wholesale banking services. Net profit for the March 2006-2007 reached Rs. 1,141.5 crore. In early 2007, HDFC officially entered the microfinance market and opened branches that provide funding to self-help microfinance group. After finding primary and secondary data I find: 1. Customers don’t know about the advantage of our current account. 2. Customers are less aware about the benefits Providing Company. 3. Customers have no more knowledge about the HDFC Bank limited. 4. HDFC reduces the complexity of current account. 5. HDFC provides best way to earn more profit. 6. HDFC is beneficial for making profit and various types of works. 7. The procedure of HDFC is very easy. [pic] 1. SUMMARY OF LEARNING EXPERENCE: HDFC Ltd has the objective to enhance residential housing stock and promote home ownership. Their offerings range from hassle-free home loans and deposit products, to property related services and a training facility. They also offer specialized financial services to the customer base through partnerships with some of the best financial institutions worldwide. HDFC Bank began operations in 1995 with a simple mission: to be a World-class Indian Bank. We realized that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally. So that I learn many important things from HDFC and market are as: 1. I have gained live experience of marketing. 2. I find all types of help from my training in charge. 3. I have gained knowledge in the field of HDFC. 4. I find there are many customers are not aware about the HDFC. 5. I find there are lots of opportunities in the Banking Sector. 2. CONCLUSIONS AND RECOMMENDATIONS: Conclusion HDFC Ltd has the objective to enhance residential housing stock and promote home ownership. Their offerings range from hassle-free home loans and deposit products, to property related services and a training facility. They also offer specialized financial services to the customer base through partnerships with some of the best financial institutions worldwide. HDFC Bank began operations in 1995 with a simple mission: to be a World-class Indian Bank. We realized that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally. . Besides we also have a dedicated technical team as well as customer care services and its procedure is also very simple. Recommendations 1. To provides awareness about Current Account and its uses to customers. 2. To open maximum and Big accounts for getting more profit. 3. To target not only metro cities, target all big and small city or village. 4. To build the customer relationship 5. To improve its marketing strategies 6. To improve its selling process [pic] COPY OF QUESTIONNAIRE: 1. Are you aware about Current Account? a. Yes b. No 2. Are you aware about current account providing HDFC Bank? a. Yes b. No 3. Are you aware about HDFC Bank Limited? a. Yes b. No 4. Are you aware about the procedure of Current Account? a. Yes b. No 5. Is HDFC reduces the complexity of Current Account procedure? a. Yes b. No 6. Is HDFC provides you cheap and best way to earn money and to make you a independent owner? a. Yes b. No 7. Are you aware about the profit volume ratio doing business with HDFC? a. Yes b. No 8. Are you interested to open current account in HDFC Bank ? a. Yes b. No BIBLIOGRAPHY: 1. www.hdfcbankltd.com 2. www.hdfc.in 3. www.google.com 4. Business Today 5. India Today [pic] Sales Executive Team Leader Sales Manager Area Sales Manager Area Sales Head Regional Sales Manager Zonal Sales Manager National Sales Manager