IFS CIA - 3

MADE BY:

KARAN SETHI

1620518
TOPIC: NEW SERVICE DEVELOPMENT

INTRODUCTION:
Competitive intensity and customer expectations are increasing in nearly all service industries. Thus success
lies not only in providing existing services well, but also in creating new approaches to service. Because the
outcome and process aspects of a service often combine to create the experience and benefits obtained by
customers, both aspects must be addressed in new service development.

Developing new products and services is important to the growth of small businesses. New products enable
your company to enter new markets or increase your business with existing customers. However, product
development is a high-risk activity, so it is important to carry out research into market needs and follow a
rigorous development and review process.

The article wants to identify how new services are developed and are there any similarities between various
financial service providers in developing new services the researchers only based in India and considers
about 148 Financial Service firms which include local and multinational firms.

OBJCTIVES:
Few researchers have already made studies to investigate the issue of new financial services development in
emerging markets. To address this gap in the literature the aim of this paper was to document a study of the
New Service Development process and the strategy of business‐to‐business financial service firms in India.

India is an aspiring and a growing economy welcoming number of investors and investment opportunities
this it has become the need of the hour for development of the new services to develop and to support the
financial system of the economy.

An economy can be considered strong only when it has good financial backing with it .

This paper helps us to analyse various new services development and its processes which will also benefit
the businesses in the Indian economy.

METHODOLOGY:
The author conducted surveys of 148 multinational service firms operating in India and 126 local and
indigenous Indian service firms belonging to the financial services industry.

Questionnaires were circulated and personal interviews were carried out with the industry expert’s .the
sample had a mixture of all the industry and people from various level of management so as to get a fair
image and a clear understanding

The question airs were designed parallel to check that all the answers given by the respondents are fair and
true and the research give true outcomes.

CRITICAL ANALYSIS:
The author basically divides the industry into two segments first is the service firms that are operating in
India and are indigenous, and the second is multinational(MNC) service firms operating in India. The
observations shows that both of them are quite different in their strategies in the way they compete in the
market, they advertise, they manage their market share, their employees and their payment and claim
settlement procedures.
The author find that new service development practices vary from company to company industry to industry,
size of the company and even nature of customers

CONCLUSION AND RESEARCH GAP:

This research was done taking samples only in India so the applicability is not tested round
the Globe. So we cannot make a conclusion that new service development is an effective
concept round the globe and will make all the economies grow because it is tested only on
Indian economy which is a growing economy and it may yield different results when tested
on developed economies.

REFERENCES:
Intekhab (Ian) Alam (School of Business, State University of New York (SUNY), Geneseo, New York,
USA)

TOPIC: MICRO FINANCE

INTRODUCTION
Microfinance has emerged as a larger movement whose objective is a world in which everyone, especially
the poor and socially marginalized people and households have access to a wide range of affordable, high
quality financial products and services, including not just credit but also savings, insurance, payment
services, and fund transfers.

Many of those who promote microfinance generally believe that such access will help poor people out of
poverty. For many, microfinance is a way to promote economic development, employment and growth
through the support of micro-entrepreneurs and small businesses; for others it is a way for poor to manage
their finances more effectively and take advantage of economic opportunities while managing the risks. The
terms have evolved - from micro-credit to micro-finance, and now 'financial inclusion'.

While the success of the Grameen Bank (which now serves over 7 million poor Bangladeshi women) has
inspired the world, it has proved difficult to replicate this success. In nations with lower population
densities, meeting the operating costs of a retail branch by serving nearby customers has proven
considerably more challenging. Hans Dieter Seibel, board member of the European Microfinance Platform,
is in favour of the group model. This particular model (used by many Microfinance institutions) makes
financial sense, he says, because it reduces transaction costs. Microfinance programmes also need to be
based on local funds.

In developing economies and particularly in rural areas, many activities that would be classified in the
developed world as financial are not monetized: that is, money is not used to carry them out. This is often
the case when people need the services money can provide but do not have dispensable funds required for
those services, forcing them to revert to other means of acquiring them. In their book The Poor and Their
Money, Stuart Rutherford and Sukhwinder Arora cite several types of needs:

 Lifecycle Needs: such as weddings, funerals, childbirth, education, home building, widowhood and
old age.
 Personal Emergencies: such as sickness, injury, unemployment, theft, harassment or death.
 Disasters: such as fires, floods, cyclones and man-made events like war or bulldozing of dwellings.
  Investment Opportunities: expanding a business, buying land or equipment, improving housing,
securing a job, etc.

OBJECTIVES:
In this article review, we will be examining the affects Microfinance had in different regions of the world
and critically examine the findings, comparing the results and concluding with a gap analysis.

Microfinance in Bangladesh has captured the attention of researchers throughout the world. Among the
major microfinance institutions (MFIs) in Bangladesh the Grameen Bank (GB), and the Bangladesh Rural
Advancement Committee (BRAC) are the pioneers of microfinance service providers (Rahman 2010).
Although the microfinance movement has developed rapidly in Bangladesh over the last three decades, there
has been little research on the wider contribution of microfinance to the livelihood of its clients in
Bangladesh.

Impact of Microfinance on Household Income and Consumption in Bangladesh: Empirical Evidence from a
Quasi-Experimental Survey (Bhuiya, Khanam, & Rahman, 2016) aims to evaluate this gap. The study
examines the impacts of microfinance on income and consumption of households in Bangladesh that
ultimately lead to poverty reduction.

METHODOLOGY
The data was collected across 20 villages in four districts of Bangladesh using a quasi-experimental survey
approach. The sample was designed so that member households of microfinance programs were compared
with non-member households of similar characteristics. The total number of households interviewed was
439, or about 22 households per village.

This study, conducted during April to July 2014 in four districts of Bangladesh, was based on two surveys
with village leaders and households.

CRITICAL ANALYSIS
After the authors performed the required statistical tests in the data they collected, they concluded that
microfinance members remained poorer than non-members. However participation in microfinance had its
benefits. A 1% increase in the duration of membership was associated with an increase in income and
consumption by an adult equal to 0.19% and 0.16% respectively.

An additional month of participation in microfinance is associated with the lower probability of being poor
(using $1.25 PPP per person per day) by 7 Percentage points. The article result suggests that the overall
impact of microfinance operations on the economic well-being of the microfinance participants is positive.

CONCLUSION AND RESEARCH GAP:

Conclusions were drawn that microfinance members remained poorer than non-members
however participating in microfinance had its own pros and cons. The gap in the research
was that it was focused to only a specific group of people thus the effect and the result could
not be generalised in all the circumstances because the major people who indulge in
microfinance specifically in India are from backward class of the society and sometimes
even lack basic education all these types of societies were not there in the sample while
collecting the data thus we need to have all the type or background of people to come down
on a generalised conclusion.

REFERENCES:
Chen, H., Liu, J., Sheu, T., & Yang, M. (2012). The impact of microfinance on the society. Emerald insight.
Retrieved 15 April 2015

TOPIC: IPO’S

INTRODUCTION
An initial public offering (IPO) is the first time that the stock of a private company is offered to the public.
IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by
large privately owned companies looking to become publicly traded. In an IPO, the issuer obtains the
assistance of an underwriting firm, which helps determine what type of security to issue, the best offering
price, the amount of shares to be issued and the time to bring it to market.

An IPO is also referred to as a public offering. When a company initiates the IPO process, a very specific set
of events occurs. The chosen underwriters facilitate all of these steps.

 An external IPO team is formed, consisting of an underwriter, lawyers, certified public accountants
(CPAs) and Securities and Exchange Commission (SEC) experts.
 Information regarding the company is compiled, including financial performance and expected future
operations. This becomes part of the company prospectus, which is circulated for review.
 The financial statements are submitted for official audit.
 The company files its prospectus with the SEC and sets a date for the offering.

The study examines listing day performance of IPOs, book-built and fixed-price IPOs, post-listing
aftermarket performance of IPOs, book-built and fixed-price IPOs in the Indian stock market. IPO market in
India has had its allotment of ups and downs over a period, for added than the aftermost decade. It has
apparent an abrupt acceleration in the antecedent years of the column liberalization of Indian Economy. The
advance empiric during the first half of the 90s is mostly attributed to the banking liberalization of the
economy. We examine pricing as well as long run performance of 464 (365 book-built IPOs and 99 fixed-
price IPOs) Indian IPOs that went public between 2001 and 2011. The study covers 15 years from the
financial year 2001 to 2015. Analysis of the results reveals that compared to fixed-price IPOs, book-built
IPOs are under-priced by lesser magnitude. Moreover, book-built IPOs are associated with negative
cumulative average abnormal returns (CAARs) up to five years and beyond, the negative CAARs associated
with fixed-price IPOs turn positive after one and one-half year and continue to be positive thereafter. Initial
accessible alms (IPO) is the action by which a close sells its disinterestedness shares to the accessible for the
aboriginal time. One of the challenges for the investors is to appraise the appraisement of the IPOs because
IPO firms do not accept actual amount information. The researchers from time to time explaining why the
offering price of IPO is set have developed various theories. The review of literature has been divided into
two parts. First part deals with listing day under-pricing and second part deals with long run performance.

OBJECTIVES
The article focuses to ascertain the listing day performance (under-pricing) of IPOs in India and analyse
listing day performance of book-built and fixed-price IPOs, separately.IPO is very crucial for the companies
and their success also ascertains the success of the company altogether.

The researcher also focuses on ascertain post-listing aftermarket performance of IPOs in India and
aftermarket performance of book-built and fixed-price IPOs, separately.

METHODOLOGY
Methodology used here is sample and data which contains the sample of 464 IPOs (365 book-built IPOs and
99 fixed-price IPOs) that went public from the financial year 2001 to 2011 were selected for the study. The
study period covers 15 years from the financial year 2001 to 2015

CRITICAL ANALYSIS
Toward those opening price, make an increase which is in the reach from claiming 24–25%. On addition,
those investors who offer their offers at the low value on the posting day Might make an increase of around
8%. At these measures for under-pricing, both raw and market-adjusted, is found should a chance to be
statistically critical In 1%. One interesting observation about the different measures of under-pricing is that
there is not much of difference between raw under-pricing and market-adjusted under-pricing. After its
introduction in 1995, book-building method became more and more popular among the issuers and many
issuers started adopting this method of pricing the issues instead of the traditional fixed-price method.

By analysing the outcomes, we recognized that Different measures of under-pricing to book-built issues
need aid much less in extent over their relating measures to the entire test which incorporates fixed-price
issues also. Both raw and assorted market indices-adjusted measures of under-pricing application the
closing amount on the advertisement day are begin to be in the range of 21–22%, while the corresponding
measures are about 28% for the accomplished sample. Altered measures of under-pricing application the
aperture amount are in the range of 17–18%, while the corresponding measures for the accomplished sample
are about 25%. While altered measures of under-pricing using, aerial amount are in the range of 41–42%,
the corresponding measures for the accomplished sample are begin to be about 50%

CONCLUSION AND RESEARCH GAP

The important implication of this article is that like in abounding added basic markets, companies in India
time their issues. They appear out with their IPOs during the time back the market affect is high. In the
continued run, the aforementioned IPOs which had initially offered absolute return, underperform.
Considering the actuality of such windows of opportunity for issuers, policy-makers charge appear out with
measures to assure the continued run absorption of investors. In late years, those initial public offering
showcase on india need seen huge numbers point of interest developments similar to those presentation from
claiming ASBA (Application underpinned via blocked Amount), evaluating of IPOs, propelling about initial
public offering Index, presentation from claiming family Investors, presentation from claiming wellbeing net
for IPOs, derivatives, circlet filter, price–volume following Toward those SEBI on identify value controls.
Therefore, future investigations around IPOs might connection to these developments. To example, those
evaluating about IPOs which will be dependent upon those basics of the issuing shares of the organization
might make associated of the beginning and in addition long run execution of the IPOs.

REFERENCES:
Hawaldar, I. (2018) ―Pricing and performance of IPOs: Evidence from Indian stock market‖ Cogent
Economics and Finance Volume 6 Issue 1

TOPIC: HIRE PURCHASE

INTRODUCTION
A hire purchase is a method of buying goods through making instalment payments over time. The term "hire
purchase" originated in the United Kingdom and is similar to rent-to-own arrangements in the United States.
Under a hire purchase contract, the buyer is leasing the goods and does not obtain ownership until the full
amount of the contract is paid.

To begin a hire purchase, a payment is often required up front. The rest of the amount due is submitted
through scheduled payments, similar to an instalment loan or a vehicle lease. The ownership of the good
purchased through a hire purchase is not officially transferred to the buyer until all required payments have
been submitted. Companies offering hire purchase options earn a profit by applying additional costs to the
monthly payment which serves as interest charges for the purchase.

Businesses commonly employ this manner of leasing goods to enhance the appearance of earnings metrics.
For instance, by leasing assets, it may be possible to keep the debt used to pay for the assets and the asset
itself off the balance sheet, resulting in higher operational and return-on-asset (ROA) figures.

In circumstances where a buyer either cannot continue to make the required payments or is no longer
interested in purchasing the item, it can be returned to the company at which the hire purchase arrangement
was made. This may render the original agreement void, as the associated asset has been returned to the
store that currently maintains ownership rights on the asset in question.

Hire purchases can accelerate the pace of growth and development. First, the increase in spending has the
effect of increasing the multiplier effect on income in addition to encouraging aggregate investment.
Increased income raises the level of expenditure further thus setting in motion a virtuous cycle of growth in
consumption, investment, income, and development. Hire purchase also helps to sustain growth by making it
possible for client to resist the downward adjustment of their consumption during a fall of their income.

Progresses over innovation and the improvement about smart cards bring encouraged those dissemination of
current hire buy offices utilisation globally. he contribution of Hire purchase to the organization and the
client looking at the pros and cons to discern whether it is a win- win situation for the hire purchase
companies, the client and economic growth.
OBJECTIVES:
The researchers focuses and tries to analyse whether there is any impact of hire purchase management
practices on the performance of the institutions and determine various factors that influence productivity of
hire purchase officers in hire purchase institutions.

METHODOLOGY
The methodology used is collecting sample data of the population, procedure of collecting sample data with
the instruments and the procedures. The method used is descriptive survey, which is a quantitative data and
can analyse the relationship between independent and dependent variables and their strength and weakness
accordingly. Target population of this study comprises of selected hire purchase institutions in Kenya.
Sample size includes stratified Random Sampling is normally used when population of interest is not
homogeneous and in this case the target was the managers and top management of the population directly
involved in hire purchase allocation. Data collection of this study used is only primary data. Primary data
was obtained through self-administered questionnaires with closed and open-ended questions. The closed
ended questions enabled the research study to collect quantitative data while open-ended questions were
used to enable the research study to collect qualitative data.

CRITICAL ANALYSIS
The characteristics of Hire purchase Agreement also plays important role in this study The data is collected
through primary source which is questionnaires from the population the analysis of the data collected states
that the data was then summarized, coded, tabulated and analyzed using both descriptive and inferential
statistics. Descriptive statistics included those of the mean, standard deviation and frequency distribution
while inferential statistics involved use of correlations and multivariate regression analysis. Data
presentation was done by the use of pie charts, bar charts and graphs, percentages and frequency tables. This
ensured that the gathered information was clearly understood. SPSS was used to perform the analysis as it
aided in organizing and summarizing the data by the use of descriptive statistics such as tables. The study
used ANOVAs and regression analysis both simple and multiple to study the effect of independent variables
on the dependent variable. The study established that hire purchase allocation is affected by the four factors
namely: hire purchase policy, hire purchase standard, hire purchase terms and repossession policy. The
study further established that among these factors, hire purchase standard policy significantly effected hire
purchase allocation, followed by hire purchase terms and then collection policy and hire purchase policy in
that order.

CONCLUSION AND RESEARCH GAP

The study therefore concludes that hire purchase institutions educate their clients about their hire purchase
policies so that both the existing and potential clients wish to apply for a hire purchase facility that would
focus to certain requirements. The results of the study determine that currently hire purchase institutions are
unable to judge whether the use of information from hire purchase reference reporting bureaus enables them
to determine the quality of the clients. Therefore there can be a further study on the to actuate the behind
amount for hire purchase academy back the actualization of hire purchase advertence advertisement bureaus
and additionally to authorize the prevalence level of hire purchase administration advice amidst the hire
purchase institutions as able-bodied as customers. he study recommends that further research be carried out
to determine other factors that would affect hire purchase allocation such as political consideration and the
prevailing economic conditions
REFERENCES
Okioga, D. (2012). The Hire Purchase Business, Is It a Win-Win Situation. Ijhssnet.com. Retrieved 22
November 2012

TOPIC: ANGEL INVESTOR

INTRODUCTION
Angel investors invest in small start-ups or entrepreneurs. Often, angel investors are among an
entrepreneur's family and friends. The capital angel investors provide may be a one-time investment to help
the business propel or an on-going injection of money to support and carry the company through its difficult
early stages.

Angel investors provide more favourable terms compared to other lenders, since they usually invest in the
entrepreneur starting the business rather than the viability of the business. Angel investors are focused on
helping start-ups take their first steps, rather than the possible profit they may get from the business.
Essentially, angel investors are the opposite of venture capitalists.

Angel investors are also called informal investors, angel funders, private investors, seed investors or
business angels. These are affluent individuals who inject capital for start-ups in exchange for ownership
equity or convertible debt. Some angel investors invest through crowd funding platforms online or build
angel investor networks to pool in capital.

Business associates. These are people you come in contact with during the normal course of your business
day. They can be divided into four subgroups:

Suppliers/vendors. The owners of companies who supply your inventory and other needs have a vital
interest in your company's success and make excellent angels. A supplier's investment may not come in the
form of cash but in the form of better payment terms or cheaper prices. Suppliers might even use their credit
to help you get a loan.

Customers. These are especially good contacts if they use your product or service to make or sell their own
goods. List all the customers with whom you have this sort of business relationship.

Employees. Some of your key employees might be sitting on unused equity in their homes that would make
excellent collateral for a business loan to your business. There's no greater incentive to an employee than to
share ownership in the company for which he or she works.

Competitors. These include owners of similar companies you don't directly compete with. If a competitor is
doing business in another part of the country and doesn't infringe on your territory, he or she may be an
empathetic investor and may share not only capital, but information as well.

The article talks about the significance of angel investors, the inputs they provide to ventures and the effect
it has on the overall economic ecosystem. The demand and supply of investments from angels is compared
and contrasted. Problems in existing studies and future prospects for study are highlighted.
OBJECTIVES
Shift of focus from how prevalent angel investment is and the amount that is being invested to how such
investment affects the businesses and economy as a whole.

METHODOLOGY
The study uses empirical data and government publications to measure the effect and significance of angel
investments in business areas.

CRITICAL ANALYSIS
In the early phases, research was focused more upon the extent and amount of angel investment that was
being made in the economies. The study tries to take a step forward and answer the question of how such
investment is helping budding ventures. Also, the data is being accessed from economic figures which can
essentially help policy makers to decide as to how much such investment should be encouraged.

The study also looks into the supply and demand of angel investment by comparing the industry
requirements and angels’ impetus to invest. There is a trade-off between promoting investment in business
and social activities. Thus, governments across the world are trying to understand the implications of angel
investing and what are the areas that should be given more emphasis.

Access to finance is a problem for SMEs, who face a plethora of problems in terms of financial markets
regulation, taxes, administrative policies; in which an angel investor can be of immense help as they have
much better knowledge about all such things.

CONCLUSION AND RESEARCH GAP

The importance of angel investing is very much brought out in this study which include increasing supply of
financial capital, increasing capacity of ventures to attract more capital, increasing quality of start-ups and
strengthening the entrepreneurial ecosystem. All these and other findings in the study clearly point to one
aspect of investing i.e. its significance and impact on businesses.

Research gap which could be identified was lack of informal aspects of funding, essentially about
relationship between venture and angel. Also, the influence of angel on the activities and decisions taken has
to be evaluated because such investments usually tend to disrupt the day-to-day functioning of ventures.
They also take away the independence of entrepreneurs and can suppress their innovative capabilities. Such
aspects should also be considered and taken into account in the research while critically evaluating a angel
investor’s role and significance.

REFERENCES
Avdeitchikova, Sofia & Landström, Hans, 2014. "The Economic Significance of Business Angels - Towards
Comparable Indicators," Ratio Working Papers 248, The Ratio Institute.