Introduction to Underwriting - Free Essay Example

Sample details Pages: 8 Words: 2283 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? INTRODUCTION TO UNDERWRITING Underwriting is an agreement, entered into by a company with a financial agency, in order to ensure that the public will subscribe for the entire issue of shares or debentures made by the company. The financial agency is known as the underwriter and it agrees to buy that part of the company issues which are not subscribed to by the public in consideration of a specified underwriting commission. The underwriting agreement, among others, must provide for the period during which the agreement is in force, the amount of underwriting obligations, the period within which the underwriter has to subscribe to the issue after being intimated by the issuer, the amount of commission and details of arrangements, if any, made by the underwriter for fulfilling the underwriting obligations. Don’t waste time! Our writers will create an original "Introduction to Underwriting" essay for you Create order The underwriting commission may not exceed 5 percent on shares and 2.5 percent in case of debentures. Underwriting has become very important in recent years with the growth of the corporate sector. It provides several BENEFITS to a company:- It relieves the company of the risk and uncertainty of marketing the securities. Underwriters have an intimate and specialized knowledge of the capital market. They offer valuable advice to the issuing company in the preparation of the prospectus, time of floatation and the price of securities, etc. They also provide publicity service to the companies which have entered into underwriting agreements with them. It helps in financing of new enterprises and in the expansion of the existing projects. It builds up investors confidence in the issue of securities. The issuing company is assured of the availability of funds. Important projects are not delayed for want of funds. It facilitates the geographical dispersal of securities because generally, the underwriters maintain contacts with investors throughout the country. TYPES OF UNDERWRITING Syndicate Underwriting: is one in which, two or more agencies or underwriters jointly underwrite an issue of securities. Such an arrangement is entered into when the total issue is beyond the resources of one underwriter or when he does not want to block up large amount of funds in one issue. Sub-Underwriting:- is one in which an underwriter gets a part of the issue further underwritten by another agency. This is done to diffuse the risk involved in underwriting. Firm Underwriting: is one in which the underwriters applyfor a block of securities. Under it, the underwriters agree to take up and pay for this block of securities as ordinary subscribers in addition to their commitment as underwriters. UNDERWRITERS To act as an underwriter, a certificate of registration must be obtained fromSecurities and Exchange Board of India (SEBI). The certificate is granted by SEBI under the Securities and Exchanges Board of India (Underwriters) Regulations, 1993. These regulations deal primarily with issues such as registration, capital adequacy, obligation and responsibilities of the underwriters. Under it, an underwriter is required to enter into a valid agreement with the issuer entity and the said agreement among other things should define the allocation of duties and responsibilities between him and the issuer entity. These regulations have been further amended by theSecurities and Exchange Board of India (Underwriters) (Amendment) Regulations, 2006. ROLE OF UNDERWRITERS The primary role of the underwriter is to purchase securities from the issuer and resell them to investors. Underwriters act as intermediaries between issuers and investors, providing for an efficient of capital. The underwriters take the risk that it will be able to resell the securities at a profit. Perhaps the most visible and familiar element of the initial public offering process is the underwriter. The underwriter is the organization that is actually responsible for pricing, selling, and organizing the issue, and it may or may not provide additional services. With direct public offerings, there is no need for an underwriter. Selection of a good underwriter is of the utmost importance, but its important to understand that many underwriters are equally selective of their clients. Because an underwriters reputation depends on successful issues, few firms will be willing to stake their reputation on questionable companies. When selecting an underwriter, its important to seek out an established company with a good reputation and quality research coverage in your field. The decision may also depend on the kind of agreement the underwriter is willing to make regarding the sale of shares. For profitable and established private companies, it shouldnt be difficult to locate an underwriter willing to make a firm commitment arrangement. Under such an agreement, the underwriter agrees to buy all issues shares, regardless of ability to sell them at a particular price. For riskier or less established companies, an underwriter may offer best efforts arrangement for the initial public offering. A best efforts contract requires the underwriter to buy only enough shares to fill investor demand. Under this arrangement, the underwriter accepts no responsibility for unsold shares. Aside from fees and sales arrangements, most underwriters are fairly similar in their roles. An underwriter will assist in the preparation and submission of all appropriate SEC filings, helping potential investors make informed decisions about your offering. All underwriters are required to exercise due diligence in verifying the information they submit, so a certain amount of investigation should be expected from any responsible underwriter. In addition to SEC registration filings, the underwriter will create a preliminary prospectus that will become a major part of the issues marketing campaign. This document is also referred to as the red herring, after a small red passage in the document that states that the company is not attempting to sell shares prior to SEC approval. Once SEC approval is obtained, the underwriter and the corporation will embark on a road show to gauge and attract interest from investors. While the road show does not involve getting binding commitments from investors, it helps the underwriter determine the best strategies for pricing and issuance. After the initial public offering, the underwriter continues to provide services for the newly public corporation. For months or even years after the offering, the underwriter may continue to make a market for the stock, ensuring liquidity for investors and making the shares more desirable. Twenty-five days after the issue, the underwriter is also permitted to make statements or projections regarding the company and its prospects. ANALYSIS OF RESEARCH ARTICLES ARTICLE 1 ROLE OF UNDERWRITER IN INITIAL PUBLIC OFFERING (IPO) When a company wants to raise funds throughinitial public offering (IPO)it appoints aninvestment bank for underwritingthe issue. AnInvestment bankis also called asmerchant bank. There is no regulatory restriction to use the services of amerchant bankfor IPO. Since in an IPO a company participates for the first time, it doesnt have complete understanding of the rules and documentation, required to be submitted, to get a clearance from the regulator. Famous merchant bankers world over are Goldman Sachs, Credit Suisse and Morgan Stanley. Banks like Deutsche, Citi, UBS etc have investment banking wings. Underwriters assess and analyze firms current performance, firms future earnings potential, industry scenario, competition in the same sector, current local and global market situations etc. to decidethe issueprice/price band. They also work on the activities like completion of the mandatory documentation as required by the regulatory body. Underwriters charge a fee for this activity , which is generally a percentage ofthe issuesize. If the issue size is very large a syndicate of merchant banks takes up the task of underwritingthe issue. However onemerchant bankleads the other. MERCHANT BANKERS The merchant bankers are those financial intermediaries involved with the activity of transferring capital funds to those borrowers who interested in borrowing. They guarantee the success of issues by underwriting them. Merchant banks are popularly known as issuing and accepting houses. Unlike in the past, their activities are now primarily non-fund based (fee based). They offer a package of financial services. The basic function of merchant banks is marketing corporate and other services that are guaranteeing sales and distribution of securities and also other activities such as management of customer services, portfolio management of customer services, portfolio management, credit syndication, acceptance credit, counseling, insurance, etc. As per SEBI (Merchant bankers) Rules, 1992: Merchant bankers means any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities or acting as manager, consultant, advise or rendering corporate advisory service in relation to such issue management. MERCHANT BANKING Merchant banking activity was formally initiated into the Indian capital markets when grind lays bank received the license from reserve bank in 1967.grindlays started with management of capital issues ,recognized the needs of emerging class of entrepreneurs for diverse financial services ranging from production planning and system design to market research .even it provides management consulting services to meet the requirements of small and medium sector rather than large sector. Citibank setup its merchant banking division in1970.the various tasks performed by this divisions namely assisting new entrepreneur ,evaluating new projects ,raising funds through borrowing and issuing equity. Indians banks started banking services as a part multiple services they offer to their clients from 1972.state bank of India started the merchant banking division in 1972.in the initial years the SBIS objective was to render corporate advice and assistance to small and medium entrepreneurs. REGISTRATION OF MERCHANT BANKERS WITH SEBI It is mandatory for a merchant banker to register with the sebi. Without holding a certificate of registration granted by the securities and exchange board of India, no person can act as a merchant banker in India. Only a body corporate other then a non-banking financial company shall be eligible to get registration as merchant banker. The applicant should not carry on any business other than those connected with the securities market. All applicants for merchant bankers should have qualifications in finance, law or business management. The applicant should have infrastructure like office space, equipment, manpower etc. The applicant must have at least two employees with prior experience in merchant banking. MERCHANT BANKERS IN INDIA There are 135 merchant bankers who are registered with sebi now in India. There are public sector, private sector and foreign players registered with sebi. The below are the examples of few of the merchant bankers in each of the public, private and foreign players. PUBLIC SECTOR MERCHANT BANKERS SEBI CAPITAL MERKETS LTD. PUNJAB NATIONAL BANK. IFCI FINANCIAL SERVICES LTD. KARUR VYSYA BANK LTD. STATE BANK OF BIKANER AND JAIPUR. PRIVATE SECTORS MERCHANT BANKERS: ICICI SECURITIES LTD. AXIS BANK LTD(FORMERLY UTI BANK LTD.) BAJAJ CAPITAL MARKETS LTD TATA CAPITAL MARKETS LTD. ICICI BANK LTD. RELIANCE SECURITIES LIMITED. KOTA MAHINDRA CAPITAL COMPANY LTD. YES BANK LTD. FOREGN PLAYERS IN MERCHNT BANKING. GOLDMAN SACHS(INDIA)SECURITIES PVT.LTD. BARCLAYS SECURITIES(INDIA)PVT.LTD. BANK OF AMERICA.N.A. DEUTSCHE BANK. DEUTCHE EQUITIES INDIA PRIVATE LIMITED. SERVICES OF MERCHANT BANKS PROJECT COUNSELLING: Project counseling includes preparation of project reports,deciding upon the financing pattern to finance the cost of the project and appraising the project report with the financial institutions or banks.it also includes filling up of application forms with relevant information for obtaining funds from financial institutions and obtaining government approval. MANAGEMENT OF DEBT AND EQUITY OFFERINGS This forms the main function of the merchant banker.he assists the companies in raising funds from the market.the main areas of work in this regard include: instrument designing, pricing the issue, registration of the offer document, underwriting support and marketing of the issue, allotment and refund, listing on stock exchanges. ISSUE MANAGEMENT Management of issue involves marketing of corporate securities viz. equity shares, preference shares and debentures or bonds by offering them to public. Merchant banks act as per SEBI guidelines, the merchant banker arranges a meeting with company representatives and advertising agents to finalize arrangements relating to date of opening and closing of issue, registration of prospectus, launching publicity campaign and fixing date of board meeting to approve and sign prospectus and pass the necessary resolutions. Pricing of issues is done by the companies in consultant with the merchant bankers. MANAGERS, CONSULTANATS AND ADVISERS OF THE ISSUE: The managers of the issue assist in the drafting of prospectus, application forms and completion of formalities under the companies act, appointment of registrar for dealing with share applications and transfer and listing of shares of the company on the stock exchange. Companies can appoint one or more agencies as managers to the issue. UNDERWRITING OF PUBLIC ISSUE: Underwriting is a guarantee given by the underwriter that in the event of under subscription, the amount underwritten would be subscribed by him. Merchant banking subsidiaries cannot underwrite more than 15% of any issue. PORTFOLIO MANAGEMENT: Portfolio refers to investment in different kinds of securities such as shares, debentures or bonds issued by different companies and government securities. Portfolio management refers to maintaining proper combinations of securities in a manner that they give maximum return with minimum risk. RESTRUCTURING STRATEGIES: AA merger is a combination of two companies into a single company where one survives and other losses its corporate existence. A takeover is the purchase by one company acquiring controlling interest in the share capital of another existing company. Merchant bankers are the middlemen in setting negotiation between the companies. Merchant bankers assist the management of the client company to successfully restructure various activities, which include mergers and acquisitions, management buyouts, joint ventures among others. OFFSHORE FINANCE: The merchant bankers help their clients in the following areas involving foreign currency: Long term foreign currency loans Joint ventures abroad Financing exports and imports Foreign collaboration arrangements ROLE OF MERCHANT BANKER IN A PRIMARY MARKET ISSUE MANAGEMENT: Merchant banker is the intermediary appointed by companies in the primary market issue. It has to look at the entire issue management and work as the manager to the public issue. References: https://lastbull.com/iporole-of-underwriter/

Trystan Gray. Miller. English 175. 1/11/2017 . Poetry...

Trystan Gray Miller English 175 1/11/2017 Poetry Analysis â€Å"Peter Piper† is an original song by Run D.M.C. and from this J. Simmons and D. McDaniels took a couple verses out and edited them to be used in school text book across the United States. The song was founded in 1986 and from there it was put into our text book in the poetry section because, even though people don t realize it, rap is poetry and can teach youth about things they may or may not have experienced. Founded in 1981, Run D.M.C. was and still is considered by many to be a popular rap group. Run D.M.C. is part of the original group of people who elevated rap music from an inner-city slums mixtape to a nation wide movement; this being the reason rap music is around and†¦show more content†¦In the first line it says â€Å"Now Dr. Seuss and Mother Goose both did their thing, but Jam Master s gettin loose and D.M.C. s the king† Seuss and goose in the internal part of the poem rhymes and is also single syllable which makes it monosyllab le and internal rhyme making a complex sound when spoken when combining with the end rhyme of thing and king. Varying rhyme schemes are seen throughout the poem and embody the complexity that can be seen in this form of art, and although it’s a lot to understand this is just the basic fundamentals of rap music. To emphasize rhymes or even to create rhymes where they do not really exist rappers as well as poetic speakers use stressed and unstressed syllables to bend their bars around what they want. For example read dead and read bead are two rhymes both using read but based on how you stress the syllable is what makes it rhyme with the following word. We use this complexity daily without even thinking about it. Another scheme seen in the song mixes alliteration with stressing the syllables to make the lyrics more appealing to the listener. For example it says â€Å"Everything that he touched turned to gold, he s the greatest of the great get it straight he s great† all iteration is seen with touched and turned as well as greatest, great, get, and great. By rhyming the alliteration the artist is able to once again make his lyrics more appealing to some people by

Women Obtaining Freedom in Novels, Yellow Wallpaper and...

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An Increasing Crime Statistic In The United States Is A

An increasing crime statistic in the United States is a lot of violence by young gangs. In this case, young gangs tend to kill other young people in a large percentage of incidents these juvenile killers belong to young gangs. Young gangs band together for various reasons and get into trouble with the law are certainly not new in America. Young gangs have been around since the early 1800’s it was formed young kids of low-income immigrants who felt that society held no place for them . The earliest gangs, which flourished in new England, New York, and Philadelphia. Today’s youth gangs are composed by young Latinos of African Americans, but their problems are the same poorly educated, poorly trained without resources, they band together for†¦show more content†¦(World of criminal justice, gale) The controversy is over whether the definition of gangs should include participation in delinquent or criminal behavior as part of the definition. Among senior gang resear chers, (James F.). 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Use of Irony in A Streetcar Named Desire and Hamlet Essay

In both A Streetcar Named Desire and Hamlet, Tennessee Williams and William Shakespeare, respectively, demonstrate their abilities to create engaging plays which work on several levels in order to produce the desired effect. One of the most important characteristics of these plays is the playwrights success in using their words to create the worlds surrounding their works. Both Shakespeare and Williams effectively use irony in the aforementioned plays, both in the plot and with specific symbolism, to create mildly existential environments where effective irony is a confirmation of fate and justice. Immediately apparent to the reader upon completion of these two works is the glaring appearance†¦show more content†¦Hamlets insanity is also ironical, as it begins as a ploy simply to remove Claudius suspicions of his discovery, and ends with Hamlet bordering on actual insanity and Claudius suspicions only being increased and confirmed. With Gertrude, Shakespeare creates an arguably undynamic character who simply follows Claudius requests, until; of course, she decides to drink the poison. Williams uses subtle irony in his play, although he incorporates a more symbolic approach, using names and political allusions. It is ironic that the coarse, violent sexuality of the Kowalskis exists in Elysian Fields, the Greeks equivalent to heaven, and the Belle Reve, the beautiful dream, is a place replete with fornication and deterioration. Stella, or Star, is truly not a star, and Blanche is truly not white or pure. Symbolism on this theme of purity is also apparent when Blanche is unable to blot out the spot on her dress, just as she is unable to blot out her spotted past. Inclusion of these subtle ironies by the playwrights adds depth and insight to the worlds they have created. Possibly the most powerful and significant use of irony by the playwrights is the inclusion of poetic justice as the outcomes of the characters is

Organization Development Principles - Processes

Question: Discuss about the Organization Development for Principles, Processes. Answer: Introduction Bounce fitness is a leading fitness and personal training organization that assist people to shape their bodies and regain their health. It has been awarded as the top fitness expert by the Northern Virginia Magazine and provides in house and personalized training to its customers. The major clients of the organization include individuals, organizations, corporations and educational institutions. The specialization of the company is in providing In-home personal training and fitness to its customers. The company offer different programs that are customized according to the personal needs of the consumers and addresses the budget limitations and the fitness needs of the individuals. The fitness experts are experienced and certified professionals and have certifications in various fitness specialties. The company operates in several locations in Washington DC, Virginia and Maryland area. Recently, the company has expanded its operations in other areas of the country. During the expansi on, the company made all the centers as independent to provide quick decision making and adaptation to the local business environment. However, due to this the fitness experts adapted their fitness regime according to their personal perception and it invited several complaints (Bounce Fitness, 2016). As a result, in order to combat these problems, the organization initiated changes to standardize its operations. The management decided to use the same systems, same customer services and fitness class routines as developed in the central head office of the organization. Although the senior management of the organization is ardent to implement these changes to reduce the customer complaints, they acknowledge that the situation of organization change will bring uproar and resistance from the existing employees. The personal trainers will resist the change, as they are of the perception that they are better in developing the fitness program and customizing it according to the customers. In essence, the organization has not yet informed the personal trainers, clients and the staff members in the central office (Paton and McCalman, 2008). In this report, an organization development plan has been created to streamline the changes and address the areas where intervention is required to br ing the change process. Organization Development Plan A business organization needs a strategic plan to identify a strategic direction of growth and pursue it. Bounce Fitness has developed a strategic plan for future expansion and financial growth of the organization. It is keen to become the top fitness organization in the USA and; therefore, introducing its fitness care centers at different locations (Cummings and Worley, 2014). The business deals with specialized services, wherein the services are provided at the home of person, with customized plans that suits the budget and the fitness level of the person. However, to provide the same level of services to every client and establish a name for itself, it is important that the company standardize the fitness services offered by the organization. In this way, the mistake of one fitness expert at a different location will not tarnish the name of the entire organization. Standardization of the operations such as customer services and fitness program will also assist the organization to create an identity for itself and reduce its operations costs. Profiling Organization Culture and Readiness for Organization Development In order to change the organization culture, the company needs to diagnose the current organization culture. The existing culture of the organization must be examined to find the gaps between the existing culture and the desired culture. The knowledge of the existing organization culture is also essential in ring changes to the organization. In order to profile the current organization culture of the organization, the company must consult with all the stakeholders, namely, employees, customers and the senior management. The consultant needs to scrutinize the current culture with thee information obtained by the employees or the fitness experts in remote locations, in the central office and the clients of the organization (Anderson, 2016). Key Role in the Organization Development Process The change process affects the operations of the entire organization. In this process, the employees need to adapt themselves to the organization changes. The primary aim of th organization change is to drive the results and productivity of the organization. The key role in the change management process is of the senior managers, change management team and the fitness experts. The senior management of the organization authorizes the change management plan. They sponsor changes and provide funding for all the required changes (Anderson, 2016). The change management team develops the change management strategy and the plans for the successful implementation of the change management process. The employees collaborate with the change team to drive their performance and integrate the change management strategies in their current operations. The commitment of the change management team, employees and the senior management can be obtained by keeping them updated regarding the change managem ent process. Moreover, the communication is very important in the change management process to combat the employee resistance in the organization (Cheung-Judge and Holbeche, 2015). Required Information In order to correctly identify the problem in the organization culture and the issues that are resulting in the organization problems, it is important to obtain information regarding the underlying causes of the organization problem (McLean, 2005). In the present situation, it has been identified that the major reason or the driver of the organization change is the reduced customer satisfaction. The change management team should be able to examine the underlying cause for the problem. According to the current situation, the problem could be misunderstood mission, misunderstood strategy or lack of team cohesion. In this regard, the companies should obtain information from the customers and the employees in the central office and regional office. Alternate Strategic Directions Another strategic direction for the Bounce Fitness center is market penetration strategy. In this strategy, the company increases its market share in the existing markets. The company can increase its market share by establishing competitive prices, increase the number of fitness trainers and create product differentiation. In this strategy, the primary objective is to increase the profitability of the organization. Techniques to Embed the Organization Culture in Organization Development Plan In the organization change management, the primary methods to embed the organization culture are inspiration, information and intimidation. In the inspiration method, the management can use the technique of persuasion, vision, role modeling and storytelling to motivation to teach the people the current organization culture. The information method is the most widely used method in embedding the organization culture wherein the traditions, rituals and learning are used to teach the employees the existing organization culture. Other than that, the methods of coercion, threat, role definition and control systems are used to intimidate the employees to adopt the current organization culture. The change management team should identify the current culture of the organization and develop strategies so that the organization development process can easily be adopted by the employees (Yaeger, Head and Sorensen, 2006). Communication/Education Plan In the change process, the communication and the education plan is a significant aspect in the successful implementation of the change management. The communication plan is important for preparing the organization to transform from its current state to the desired state. The company should implement communication plan of regular meetings and emails. In the communication plan, Bounce Fitness can focus on sending the message regarding the nature of the transformation, the procedure of change, the role of the members in the change process, its effect on different members and the desired commitment from each member (Cummings, 2008). The communication plan should be circulated to each and every personnel affected with the change. Along with it, the message should be delivered by someone from the senior management to increase the credibility of the message and feedback opportunity should be provided to every individual. Implementation of Organization Development Activities The team participation can be improved when the employees and all the stakeholders are given the need for change and how it will make their operations easier. The fitness trainers should be discussed regarding how the present situation is affecting the business of the organization. Along with it, the fitness trainers should also understand that the standardization of the operations will reduce their efforts. Team development and Learning activities The organization development (OD) is an organization improvement strategy wherein one or more structured activities are undertaken to improve the performance of the organization. There are numerous organization development intervention techniques, namely, sensitivity training, survey feedback, team building and intergroup development. In the present situation, the process consultation is the best-fit approach to drive the organization development (Yaeger and Sorensen, 2009). In this approach, the professionals of the organization are assisted in developing strong relationships with the clients that result in efficient working and operations of the organization. In the present situation, the major problem in the organization is reduced employee satisfaction which can be improved with this intervention strategy. Role of Organization in Collaborative Learning Collaborative learning is a significant practice to teach the employees regarding the goals and the strategies of the organization. With collaborative learning, the companies can create a learning environment wherein the employees communicate to learn. The organization can create an informal learning network which is equally supported by the technology and the senior management (Haneberg, 2005). Conflicting situations are a common situation in the workplace. In the present context, in the organization development, the culture of collaboration can be developed in the organization. It is the process of integrating ideas and notions obtained from different sources (Haneberg, 2005). Team Learning Intervention Strategies The management can implement several strategies to enhance the productivity and efficiency of the team members. Firstly, the management can design the incentive system in such a manner that all the employees can get benefit from it. In the second intervention strategy, the company can implement a mentoring system in which the new recruits learn about the organization culture and the desired technical skills from their seniors. Thirdly, the management should implement a system of recognition and awards to the performing employees. Fourthly, the employees should be provided regular feedback and goals should be assigned to them to help them grow. Monitoring the Intervention Strategies The intervention strategies can be monitored and evaluated using the method of brainstorming. In this method, various ideas or solutions are identified in a group discussion. In this method, a brainstorming session is conducted and people use their creative approach to identify the solutions to the problem. Intervention 1 Description Why do you feel this is the best option to proceed with? Incentive system Employees will be paid additionally according to their performance Employees will be encouraged to work hard and maintain their performance Intervention 2 Description Why do you feel this is the best option to proceed with? Mentoring New recruits will be trained from the experienced employees The new recruits will gain knowledge from the expertise of others Management Approval Status Approved Not approved Managers (Trainer) Name : Managers (Trainer) Signature: Date: Maintain Organization Development Program Survey is the most popular technique to examine the effectiveness of organization development program. In this technique, the attitude of the employees can be examined at each level of the organization and developing a report regarding the findings. The change management team can then devise solutions for each of the perceived problems. Regular team meetings to share information on the progress of the organization development program Regular team meetings can be used to share the information regarding the progress of the organization development program. It is the most effective way in which the people share and communicate, get feedback and collaborate to take important decisions for the organization. It will also serve as a reminder for the employees regarding what is going on in the organization, the employees can share their issues an opportunities and offer mutual support to obtain the objectives of the organization (McLean, 2005). Activities and intervention strategy In the present context, Bounce fitness should adopt the process consultation approach wherein the employees would be assisted in developing relationships with the customers. The company can also use survey feedback to determine the perception of the employees regarding the organization development process. In the organization development program it is important to maintain a progress report that assists the management of the organization to examine the progress and the efficiacy of the development program. Along with it, the progress report will also be critical in the allocation of resources and obtaining support from the employees. Evaluation of organization development plans Bounce fitness is suffering from an organization culture issue, in which it is obtaining customer dissatisfaction due to differences in the services provided at different location. Therefore, the approach to the organization development programs is to reduce the customer dissatisfaction and expand customer base. The implementation cost of the plan in accordance with the program outcomes. The company needs to bear the cost in employee training, developing the mentoring system and conducting the survey. Conclusion Conclusively, it can be stated that the organization is having issues in the organization culture which is resulting in reduced consumer satisfaction as there are variances in the services provided at different location. Therefore, the organization is focusing on implementing a system that can be used to standardize the operations in other locations. In this organization development program, the mentoring and survey system can be used. References Anderson, D.L. (2016). Organization Development: The Process of Leading Organizational Change. London: SAGE Publications. Bounce Fitness. (2016). About Us. Retrieved on 30 December, 2016 from: https://bouncefitness.com/ Cheung-Judge, M. and Holbeche, L. (2015). Organization Development: A Practitioner's Guide for OD and HR. Kogan Page Publishers. Cummings, T.G. (2008). Handbook of Organization Development. London: SAGE. Cummings, T.G. and Worley, C.G. (2014). Organization Development and Change. Boston: Cengage Learning. Denning, S. (2011). How Do You Change An Organizational Culture? Forbes. https://www.forbes.com/sites/stevedenning/2011/07/23/how-do-you-change-an-organizational-culture/#6b11701e3baa Haneberg, L. (2005). Organization Development Basics. American Society for Training and Jones, T.S. and Brinkert, R. (2007). Development. Conflict Coaching: Conflict Management Strategies and Skills for the Individual. SAGE Publications. McLean, G. (2005). Organization Development: Principles, Processes, Performance: Berrett-Koehler Publishers. McLean, G. (2005). Organization Development: Principles, Processes, Performance. Berrett-Koehler Publishers. Paton, R.A. and McCalman, J. (2008). Change Management: A Guide to Effective Implementation. SAGE. Yaeger, T.F. and Sorensen, P.F. (2009). Strategic Organization Development: Managing Change for Success. IAP. Yaeger, T.F., Head, T.C. and Sorensen, P.F. (2006). Global Organization Development: Managing Unprecedented Change. IAP.

Product Introduction by Oxfam

Question: Discuss about the Product Introduction by Oxfam. Answer: Company Analysis: The Oxfam is a not-for-profit, self-controlled, and secular company. To analyse the company, the following analysis has been done. Goals: Oxfam mainly focuses on poverty eradication, disaster relief, researching policy, and advocacy. In Australia, Oxfams activities are funded by community donations. Helping the poor nations to come out of the poverty line and making a sustainable income source is the Oxfams primary goal (Australia 2015). Market Share: The organization is currently working in eighty-five countries, reaching more than 22 million people. This wide range of market grasp has been possible due to the support of more than three hundred ten thousand campaigners and donors. According to the ideas given by Mel and Cox (2015), the organization has one hundred thirty-six producer partners. Service Quality: The company advocates of products with high quality, which is good for the environment. The service provided by the organization not only triggers awareness regarding social issues like climate changing and inclusion of indigenous people, but also helps those people who are not able to earn their basic income (Australia 2017). Financial Status: The organization currently has net assets of 17,918 thousand dollars. It uses more than seventy percent of the donations for advocacy programs. The rest is used for fund raising, promotion, and administration. The financial status of the company is not complicated due to its non-profit operations. Organizational Strategies: The primary strategy that has been adapted by the company is to make a sustainable organizational system. The products sold by the company are environment friendly and the products are there to aware people about the diversity and societal requirements. Competitor Analysis: Major Competitors: The competition in the market where Oxfam operates is minimal as the companys focus is not on profit earning. The similar organizations operating in the same market are Greenpeace Australia, Wilderness Society, Their Goals and Objectives: The primary goals and objectives of these competing organizations are improving the concepts of environmentalism and bringing peace to the societies. Marketplace Behaviour: The competitors of Oxfam try to capture the better share of the market by using the methods of nonviolence, lobbying, research regarding the products and their production process, and innovating new products and productions processes. The urge of being at the top of the list makes the equilibrium price low. Growth: Growth in this industry is mainly based on the strategies implemented by the organizations. The mostly followed strategy by the organizations is adapting a sustainable approach. The growth in the industry is high. Oxfam Australia reached more than seventeen million people in the last seven years. As stated by Cousins (2014), the growth of these organizations is also highly supported by the government of Australia. Positioning: The following positioning map shows the place where Oxfam Australia is currently operating in the market. Figure 1: Positioning map of the not for profit organizations in Australia. Source: As created by the author. Service Quality: The service quality in this industry is high as the quality guidelines are created following the ethical boundaries. As stated by Deen (2014), the service quality of Oxfam Australia is determined by comparing the perceived expectations and the perceived performance. The high sustainability and quality of the products add value to the service quality of the organization. Customer Analysis: Customer Profile: The customers of the organization belong to every consumer group irrespective of their gender and age. The products are suitable for using in both indoor and outdoor events. Target market: The target market of Oxfam Australia for the new product Nakshi Katha belongs to all income groups. The multiple use of the product increases the size of the target market. People of all age group and sex from the households of the economy belong to this target market. The target market excludes the corporate sector of the economy. Market Segmentation Based on Customer Behaviour: Based on the customer behaviour, the market can be segmented in four different ways namely geographic, demographic, psychographic, and behavioural. The geographic segmentation incorporates regions, cities, states, and neighbourhoods. The customers belonging in the cold areas like Brisbane and Canberra and their peripheries will get high utility from using the Nakshi Katha. The demographic segment divides the market according to the gender, age, sex, family, and income. Those families staying in hilly areas can use this product. The stylish bed sheets and slim blankets are useable for all age groups irrespective of gender. The low price rate of the products makes Nakshi Katha easy available to all income groups. The psychographic segment deals with the lifestyle, social class, and personality. The blankets of Nakshi Katha are suitable for people from all the social classes. The products variation supports their lifestyle (McLeod 2014). The behavioural segment of the market deals with the user status, usage rate, and benefits from using the products. The quality of the products is high. It supports high usage rate, as the wear and tear of the products are minimum. According to the views given by Islam (2013), the products of Nakshi Katha are cheap with high utility value. It makes the use of these products very benefiting for the consumers. SWOT Analysis: Internal factors Strengths: Highly established. Strong and positive reputation within and outside the country. Strong performance increasing strategies. High service quality. High product quality. Nakshi Katha is a cheap product. with high quality. User-friendly. Weaknesses: No specific sponsors for the organizations projects. Entirely depending on donations. Nakshi Katha is not well known to the consumers. The supply of Nakshi Katha is relatively low as the product comes from Bangladesh (Ali 2014). External factors Opportunity: Huge youth audience. More than 130 producer partners. Highly maintained supply chain. Low price of Nakshi Katha. High benefit possibility for the Bangladeshi producer partner as well. Threats: Many organizations existing in the same industry. Similar messages and campaigns are run by many organizations. Maintaining enthusiasm among the well-wishers becomes hard in long run. Nakshi Katha being delivered from Bangladesh takes time to enter the Australian market (Lawrence 2013). Shortage of supply can create negativity among the consumers of the product. Table 1: SWOT analysis for Oxfam Australia. Source: As created by the author. Objectives: The primary objective of Oxfam Australia will be increasing the sales of Nakshi Katha by creating awareness in the population about the products. The secondary objective of the organization is to generate revenue for the makers of Nakshi Katha in Bangladesh, who struggling in poverty (Khan 2014). References: Ali, S.M., 2014. Museum and research center for the traditional textiles of Bangladesh (Doctoral dissertation, BRAC University). Australia, O. (2017). The Power of People Against Poverty. Oxfam Australia. Available at: https://www.oxfam.org.au/ [Accessed 18 Jan. 2017]. Australia, O., 2015. Oxfam Australia Strategic Plan Outcomes Report of three Strategic Plan goals. Cousins, S., 2014. On the Home Stretch: Why Australia must use its final months on the UN Security Council to advance the rights and safety of civilians. De Mel, A. and Cox, M., 2015. The new global goals-the world's biggest challenge. Ethos, 23(4), p.15. Deen, N., 2014. Oxfamsupported networks in Vanuatu Review Report. Oxfam Australia, September. Islam, M., 2013. Taaga and its brand challenge: a perspective of consumer view. Khan, A., 2014. Employee Engagement Programs Designed by Aarong for different levels of employees. Lawrence, K., 2013. Stitched in the Margins. Architectural Theory Review, 18(2), pp.164-174. McLeod, J., 2014. A peaceful pedagogy: Teaching human rights across the curriculum. Procedia-Social and Behavioral Sciences, 152, pp.1225-1232.