Management Simulation Assignment Example | Topics and Well Written Essays - 1750 words

Management Simulation - Assignment Example The market is forever growing and the demand for fast food is increasing with the changing lifestyles. In times of recession and extremely high inflation, people tend to reduce their expenses as much as is possible. Fast food restaurants thrive in times like these for they provide food at comparatively lower prices and whatever the socio-economic environment is like, people have still got to eat.People living in the United Kingdom live a lifestyle that is fast paced and extremely busy. As such, people do not have the time to sit around and wait for an order in a restaurant. Food outlets gain popularity based on how quick and efficient their service is.  Another factor that needs to be given special attention is the increasing orientation towards healthy foods. People now are extremely health conscious especially due to the increasing obesity issue. Fast food restaurants are known for producing high-calorie food that is not very healthy. A new pizza place will have to consider all t hese factors before starting operations.Seemingly, technology doesn’t have much to do with food but that’s not true. Technological implications on the food industry are quite wide. The extremely high internet usage and increasing trend home deliveries mean that restaurants need to have excellent websites that can attract customers and convince them to place orders. Once the order-taking is computerized, billing systems will need to be aligned with technology as well. There are increased regulations on food producers to follow strict standards of safety so that the customer has no doubt or apprehensions about the standards or quality of food they are consuming. Environmental The fast food outlets that are well known for serving meat products need to be extremely careful of activists rallying against mistreatment of animals in slaughter houses. Proper measures need to be taken to ensure these individuals that the food outlet is paying special attention to animal care. It is also important to realize that in toady’s extremely environmental conscious consumer, a restaurant paying special attention to environment has an extremely good public image. The food industry is no exception to the rule. Environment friendly packaging and reduced use of plastics as well as introduction of recyclable tissue papers have worked extremely well in establishing different outlets as house hold names for now the consumers are ensured that the food they are eating is not harmful for the environment. Law The fast food industry has to strictly comply with all the appropriate Health and Safety guidelines related with food. Failing

Entrepreneurship and Innovation in Organisations Essay

Entrepreneurship and Innovation in Organisations - Essay Example Explanations of corporate growth and development, and of the organization's ability to maximise profitability over time have increasingly relied on the entrepreneurial function (Greiner, 1972). Simply defined, an entrepreneur is someone who organizes and assumes the risk of a business in return for the profits. Entrepreneurial success depends on the ability to think strategically, have a clear strategic vision, and achieve quick results. The meaning of entrepreneurship is bound up with the concept of uncertainty. Entrepreneurs create value by acting in the context of uncertainty. As Knight (1921) puts it, the entrepreneur is the "organizer of uncertainties," which means he possesses the ability to creatively reorganize the relationships between factors of production and market opportunities in ways that create value which otherwise would not have been generated. The ability to organize wealth-generating relationships between factors of production presupposes that a market opportunity exists for the entrepreneur to capture. This gives rise to the concept of the entrepreneur as being "noticer of opportunity" (Kirzner, 1973). Entrepreneurial behaviour is, thus, described as action taken on noticed opportunities. Markets are almost always in disequilibrium and based on price disparity and information asymmetry, there always exists opportunity for arbitrage. This opportunity, however, only generates value for the noticing entrepreneur. It can be deduced that value is generated not only by an entrepreneur who is "organizer of uncertainties", but also by the entrepreneur who is "noticer of opportunities" (Jones & Butler, 1992). In entrepreneurship, once an opportunity has been acted upon, a series of internal forces begin to interfere in the entrepreneurial process. A distinction arises between entrepreneurship and management in the firm, leading to agency problems. The agency problem occurs when it is difficult for one party to evaluate the performance of the other due to uncertainty in environmental, organizational, or task conditions. Moreover, the motives of the parties to an exchange may be different giving rise to opportunism and, in turn, agency problem (Jones & Butler, 1992). In the entrepreneurial context, risk preferences cause an agency problem because the principal and agent have different risk preferences. Agency theory elaborates on the different risk preferences by discussing risk aversion of agents stating that the agents are only rewarded normal salary even though they have to bear the uncertainty of entrepreneurial activities. On the other hand, the principal is the residual claimant of all net revenues of the activities. The reward to the principal is the entrepreneurial profit for undertaking uncertainty whereas the reward to the agent is normal salary for risk taking. This disparity in reward structure gives rise to agency problem where agents have no incentive to behave entrepreneurial (Jones & Butler, 1992). Agents face an additional problem if they have injected any capital in the organization. This is because if the organization engages in a risky venture and faces bankruptcy, the agents lose their capital and have difficulty in securing equivalent alternative employment. Therefore, there is no incentive for agents to invest in the organization. This causes a misalignment of interests of principals or entrepreneurs and agents or managers and results in a loss in a firm's

P.E training program- fitness Essay Example for Free

P.E training program- fitness Essay General fitness- Speed is the ability to perform a movement or cover a distance in a short period of time. A mid fielder needs speed to out run other players or to catch on to a loose ball. Muscular endurance- is the ability of the muscles to work for a long period of time without tiring. In football you need it to be able to run around the football pitch for the whole 90 minutes. Flexibility- you lose flexibility as you get older. It is important to warm up and cool down before and after a match. In football most players in the team need to be flexible, for example to header the ball, but also the goalkeeper has to be very flexible to be able to make difficult saves. Cardiovascular endurance- requires the heart and blood vessels to supply the working muscles with oxygen for long periods of time without tiring too much. This is needed in football because you run around a lot and you need our heart and lungs to cope with the activity for the whole 90 minutes. Strength- is normally measured by the amount of weight the muscles can lift, or applying a force against a resistance. This is used in football when we tackle or are being marked and your shoulder to shoulder you need strength to hold others off. Skill related fitness- Balance- is the ability to keep up right while you are standing still or moving, this is needed in football when kicking the ball because you are balancing on one leg. Co-ordination- is the ablity to use different senses and body parts together in football this is needed between eye and foot, so you kick the ball and not miss especially volleying. Speed of reaction- is needed on the pitch so when an over ball is played your on-side and make your run perfectly to lose the defender. Timing- is needed in football to kick the ball at the right time to get the perfect touch. Agility- is the ability to change direction of the body in football we use this to help loose a defender by turning at speed, it can also help when your in the box for the corner to lose a defender so you can get up for a header. Physical skills- Kicking- is very important because the game is using your feet and you need to kick the ball to get the ball round the pitch. Shooting- is necessary to be able to shoot as in order to win the game you need to score and in order to score you need to SHOOT to ball into the goal past the keeper. Tackling- is very important to stop opponents from scoring but some times players timings are not quiet right and cause a dangerous tackle resulting in another players injury. Marking- is necessary to hold off opponents attacks and not ‘losing’ the person your defending. Heading- is important to either score from a high ball crossed in or clear the ball away from a opponent in the air. Dribbling- is very important to get the ball closer to your opponents goal. There is 2 types of dribbling: *Firstly when your jogging and keeping the ball closer to your feet. *Secondly when you knock the ball ahead of you a couple of metres and sprint to catch up with it, this is used to knock the ball past the defender. Other attributes- Concentration- is extremely important because if you’re a goalkeeper and you don’t have anything to do for 30minutes you might ‘switch off’ and let in a shot which if you were concentrating you would have saved. Motivation- is very important because if you want to win but go a goal down if you and your team are motivated enough you will be trying to score 2 goals and keep fighting. Confidence- is needed so you have the confidence in your self so you trust your ability and get ‘stuck in.’ Most important skills and techniques in football. Speed is essential in football; it is used throughout the game whether you are an attacker or a defender. For example if you are an attacker and you need to out run a defender to get the ball, to get past a defender and have a attack on goal or if your defending and there is a break you need to run as fast as possible with the ball (or in support) to the oppositions half to make an attack before their defenders catch up with you. Muscular endurance is needed 100% in football because if you are running around for 90 minutes your no use to your team if after 60 minutes you have a stitch and need to be substituted. Muscular endurance can be improved over time with a training program. Cardiovascular endurance is essential so that you can last the whole 90 minutes. If somebody’s cardiovascular endurance was not very good and they ran around for 90 minutes it could cause them to pass out because there heart and lungs can not take the strain. Smoking will also effect your cardiovascular endurance because if your trying to take in more oxygen the tar built up around your hearts arteries makes the oxygen’s gap smaller letting oxygen though slower then needed causing short of breath quicker. Balance is essential because in order to kick the ball you must stand on one leg, if you don’t have good balance you may fall over before your foot reaches the ball. Balance can not be improved, your either have good balance or you don’t. Co-ordination is important; football players need co-ordination between their eye and foot so they make contact with the ball. Skills on the ball are only preformed if the player has good co-ordination otherwise tricks become unsuccessful.

The differences of the 50s and the 90s :: essays research papers

During the fifties, to be the norm in society was to be the norm. To be the same was to be what every one else was being. Doing what every one else was doing was what was supposed to be what was being done. Did you catch all that? And then here we are in the nineties. In the nineties, to be the norm in society in to not be the norm. To be the same is to not be what every one else is being. Doing what other people don’t do is what is really expected to be done. Now, did you catch all that?   Ã‚  Ã‚  Ã‚  Ã‚  Let me elaborate on that a little bit. Pretty much, the point is that America in the 1950’s was a place where you are expected to be a normal person. America in the 1990’s and beyond is now almost a place where you are expected to do something different (or at least it isn’t a surprise when someone is different).   Ã‚  Ã‚  Ã‚  Ã‚  In a â€Å"normal† family in the 1950’s, the husband came home from working nine-to-five. In his home he would find his wife with dinner ready and the house clean. He would also find his two kids, and one dog, all doing what they are supposed to be doing. In a â€Å"normal† family in the 1990’s, the husband and wife come home from work, one at two a.m., and maybe one at two in the afternoon. They would find his kids (maybe), and they more than likely would not find them doing what they wanted them to be doing. The sun would have a red and green spiked Mohawk, and the daughter main concern is her hair’s buoyancy.   Ã‚  Ã‚  Ã‚  Ã‚  Neighborhoods in the 1950’s wre very close knit. People would say â€Å"Hi† to each other. Parents would reprimand children other than their own. Many problems were taken care of by the community, without questions asked. Communities now are loose knit, not caring to reccognise the existence of neighbors, let alone be involved with each others lives.   Ã‚  Ã‚  Ã‚  Ã‚  Today, families have very busy lives. They deal with family members on different schedules. Meals are generally served sporadically, depending on who needs what when. Fifty years ago, dinner was set at a certain time. Family members were expected to be there, and schedules worked around meals. No one watched television while they ate dinner, and the dinner conversation focus was on what happened during the day.

Free Education Essay

There is no such thing as ‘free education fully financed by the government’. A zero-tuition college education simply means that instead of the students bearing the cost of attaining their degrees the taxpayers bear it. Students and parents misperceive the price of education, considering it to be free, even though it comes out of their pockets in taxes. And why should low-income taxpayers finance the education of wealthier students? Proponents of state-financed education argue that absence of government help would put higher education out of reach of poor students. But I tend to disagree in that there are no ‘poor college students’. College-caliber students possess great wealth in the form of human capital. Anyone headed for college has enormous wealth in the form of intellectual capital and will receive earnings from his/her college education. So, the benefits of a college education are essentially reaped by the individual acquiring higher education. The future earnings of the individual typically constitute an adequate return on the gross investment in abtaining higher education. Moreover, providing free college education to all is a rather inefficient way to serve the interests of poor students since a large proportion of students who acquire higher education come from relatively well off families. There are many negative aspects of government-financed higher education. Free education leads to overproduction and waste. But, isn’t it good to have more young people with degrees? Don’t we need a more educated workforce for the more demanding jobs that will dominate our economy in the future? The answer to these questions is ‘no’. By putting more people in colleges we end up with unmotivated students who lower the standards demanded by higher education. In his book Generation X Goes to College, Peter Sacks explains how he was driven to make his courses intellectually vapid, easy and entertaining in order to improve student performance and keep his job. This is a result of classrooms being filled by indifferent students who want a degree with the lowest possible effort. The producers of higher education in a zero-tuition system are the only ones  having control over the quality of education. Financing of universities by the government leads to higher government control over them. Government officials regularly audit universities to check whether the money granted to them in the form of loans and research grants is being spent wisely. The downside of this is that the auditors may lack sufficient understanding of the technical specialities being evaluated. Also the government may enforce the hiring of faculty from minority groups, thus bringing down the quality of the teaching staff. More undesirable is the effect on the thinking of the academics. The state-subsidized scholar is reluctant to unearth ideas that bring into question his livelihood and that of his colleages. He is encouraged by his superiors not to bite the hand that feeds him. Thus, there can be no freedom of thought and freedom to explore new ideas under such a system. Most importantly, due to state financing of higher education, it is far removed from a free market. The cost of education is masked by the government subsidies. Government funding is a crucial intrusion into the market price of education. It is an intrusion which steadily raises the price to taxpayers, but reduces the perceived price of education to the educational establishment. As a result there is little incentive to control costs since they are already perceived as low. There is little incentive to promote innovations since people innovate when they feel the need to give consumer’s ‘their money’s worth’. Finally there is little incentive to respect the student who is the ‘customer’. In conclusion, I feel that the conventional wisdom about college education is wrong.We don’t need free education to get more students into college; we need to end the government subsidies so that college costs will be borne only by willing parties. We don’t need to try to make college attendance universal; we need to allow people to choose for themselves the type and extent of education that best suits them. Making college education fully government-financed goes against the basic objective of higher education – to allow the intellectual cream of society to specialize in their chosen field of interest.

Overview Of Securitization And Financial Structure Product Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2125 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? There have a larger number of developed countries faced a banking crisis (124 systemic banking crisis during the period from 1970 to 2007) and the recent global 2007-2008 financial crisis, which is different from many previous financial crisis that affected the global financial system during past several decades. Various studies investigated the role of securitization and structured finance product that causing the global financial crisis and banking crisis. This paper will base on some theoretical literature and examine current banking and financial crisis in order to provide a better understanding of the role of securitization and structure finance product as the reason of global financial crisis and banking crisis in the developed countries. This paper is organized in the following manner. The first part will briefly define what securitization and structure finance product are. The second part will highlight the role how securitization should play in the economy and why this role is important. It also evaluates the problem in subprime mortgage in the United State. The third part will present the development of financial innovation have effect to create, spread the crisis. Finally, the paper concludes with a brief summary. Don’t waste time! Our writers will create an original "Overview Of Securitization And Financial Structure Product Finance Essay" essay for you Create order 2. The overview of securitization and financial structure product 2.1. The overview of securitization Securitisation is as essential to the financial system as any organised markets are. Securitization has developed and played an important role in the banking. According to Jobst (2008), securitization is the process in which certain types of assets are pooled so that they can be repacked into interest-bearing securities. The interest and principal payments from the assets are passed through to the purchasers of the securities Furthermore, Mizen (2008) indicates that securitization played a key role in the financial market in the U.S. and strongly supports the financing of the financial system, in two main respects: First, securitization may contribute to the expansion of the financial support base by transforming illiquid assets into assignable securities for the long-term. Second, securitization may offer a better match between the borrowers and investors. Figure 1. The securitization Landscape (International Monetary Fund 2009:80) Covered bonds Securitization Pass-through securities: U.S government-sponsored enterprises mortgage-backed securities Real estate investment trusts Structure finance: Asset-backed securities and asset-backed commercial paper Mortgage-backed securities Collateral debt obligations 2.2. The overview of structured finance product According to Evans (2010), when securitization has different and unequal priority, this led to structure finance emerged. Firstly, there are three type of security including Senior, Mezzanine, and Junior. Then the development of structured finance product was more complex with Collateralised Debit Obligations, and CDO squared. This will be illustrated in the graph below CDO2 Mortgage MBS CDO The structured product has fluctuated dramatically in the last decade. For instance, in the United States and Europe, issuance finance structure product increases from 500 billion dollar to 2.6 trillion dollar, 2000 and 2007 respectively (Kodres 2008). However, in 2008 these quantities had declined sharply. 3. The development in the banking model amongst developed countries and The U.S subprime mortgage crisis 3.1. The development in the banking model amongst developed countries Looking at first, beginning in 1980s, Kidwell et al. (2007) indicates that there was an increase in the involve of banks and securitization which offers a number of benefit to banks such as banks can reduce the amount of liabilities and assets by selling more than holding loans; moreover, securitization offers a source of funding loan which is less expensive than other fund. In 1988, new kind of securities include commercial paper, securities backed which a process making loans tradable, et; that emerge in commercial bank Kidwell et al. (2007) offers the explanation of why commercial bank wants to operate as investment banking; the reason is the activity of investment bank was more profitable than commercial banking activity; furthermore, investment bank is more flexibility than commercial bank, in 1999 with the Financial Service Modernization Act. At the same time, in contrary, investment banks were allowed to get into activities, which was traditionally commercial bank activity. In contrast to investment banks, commercial banks focus on taking deposit and lending. However, the bank originating the loan did not necessarily fund the loan. Supporting this point, UBM TechWeb (2008) argue that the change in the banking models because some reason: firstly, commercial bank has advantages over investment bank: a good illustration of this is while commercial banks have enable to access to the discount window and enable to borrow from the Federal Reserve, the most secure liquidity source, investment bank have not have this condition. As a result, unlevered investment bank would either disappear or be transformed into commercial bank. On the other hand, Evans (2010) demonstrates that increasing the number of traditional model of banking becomes commercial banking which is more popular, larger, and relevant. According to Mullineux and Murinde (2003), banks play a vital role in the economy and the bank failure has led to the collapse of the financial system. The major cause of financial crisis is the banking area with the unbalance information, agency trouble and moral hazard. For example, banks in a number of developed countries have experienced severe banking crisis. In the sense, Laeven and Valencia (2008) point out banking crisis which means there are a greater number of non-payment in the financial sector, a countrys corporate and bank face huge problems repaying contracts on time which has led to the asset is excess liabilities The different between current crisis episodes and previous crisis episodes is the expansion of liquidity support not only to commercial bank like previous crisis but also to investment bank (Laeven and Valencia 2008). One of the advantages of commercial bank and investment bank is their off-balance sheet which can make use of assets for purposes of investment without risks of bankrupt to these banks system. For instance, investment bank does not maintain the securities of the company in its balance sheet and they sells them to investor, trading activity, which is more complex, risky, and different functions of classic on balance sheet such as loan expansion, deposit taking. For example: Traditional banks originated illiquid loans and funded them with liquid deposits. Consequence, decrease in deposit supply which leading to falls loan supply and reduce in the securities value Balance sheet Asset Liabilities Loan -securities 100 - 95 Deposit 90 securities falling value 40 Equity 10 -5 withdraw deposit 40 3.2. The U.S subprime mortgage crisis Jobst (2008) indicates that securitization started in 1970s. Park (2009) point out that during the period from 2004-2007, US subprime mortgage markets exploded and melted down, as an example, the housing bubble explode in early 2007 that led to quick decrease in the market value of many securities such as Mortgage Backed Securities, CMOs and CDOs. There are two types of mortgage in the U.S such as prime and subprime. Subprime mortgage means lenders used to offer mortgage, lower quality and nonstandard mortgages to borrowers with nonstandard income or credit profiles and one of these borrowers is Ninja loans borrowers have no income, little or no assets, and no job; After that these subprime mortgage loans were sold rapidly to Wall Street Company as collaterals for securitization. These loan were ensured high ratings, however, their value depend on the movements in the price of house. Therefore, when decreasing the price of house led to failure to pay the loan increased in the subprim e mortgage sector, as a result the crisis occurrence. 3.3. The role of securitization and structure finance product in the banking crisis and global financial crisis. Mizen (2008) point out commercial bank and investment bank undertake securitization through special purpose vehicles which create new asset-backed securities and enable sell the product with different risk ratings for each level. International Monetary Fund (2009) provides securitization play an important role in banks due to they allowed banks more actions in lending, liquidity risk and less cost for the bank to hold. Laeven and Valencia (2008) demonstrates that almost crisis have used generous liquidity support to deal with illiquidity banks; which means banks use Asset-backed securitization that is the process transformation of illiquid assets into liquid assets ( Mullineux and Murinde 2003). For instance, previous to the fail of the securitization, in the United States, Japan, and Western, asset-backed securities and covered bond offered the new residential mortgage loan approximately 20 to 60 percent. In addition, Park (2009) argue that A larger commercial banks acting as credit enhancers for the securitized instrument in order to satisfy the growing demand for new mortgage loans, that become most crucial materials for the securitization process Financial crisis: how it happened 4. The role of financial innovation in creation, spread of the crisis The current financial crisis is different and much more complex than earlier financial crisis because the development of financial innovation such as new ways of packaging, reselling assets in MBS and more complex, subprime mortgage which weaker fundamental assets (Mizen 2008). Park (2009) demonstrates that the primary cause of the current global financial crisis is the misuse of financial innovation such as new financial products, structure finance product, and risk management. Another reasons is balance sheet mismatches, on or off balance sheet To begin with, the question arises as to the traditional model of banking would find and make the loans and hold the loans to maturity and fund it themselves which bearing the credit risk. Many economists argued without securitization and structure finance the banking would be less bad loan made due to securitization and structure finance lend so many bad loan. Secondly, the securitization and structure finance play a vital role in banking crisis because of creating and spreading in many countries financial system, and deepening the crisis (Evans 2010) According to Evans (2010), there are a rose rapidly of securitization and structure finance in Europe and The United State due to they seem to be benefit for everybody. For borrowers they can access to international capital market and securities market that was unavailable to them previously and probably cheaper. In addition, for originators of loan could back the loan together without having to fund them. This led to emerge of subprime mortgage in securitization. On the other hand, Laeven and Valencia (2008) argue that in 1980, bank building society made many bad loans which not spread to another country; nevertheless, when U.S faced with problem in the housing market which spread to many countries. The reasons for this problem are when the dollar did depreciate against the Euro in the previous 2007; however there was not a decline sharply in the demand of US assets due to the use of dollar as a reserve currency. Moreover, the US mortgage market has spread with the speediness to many countries Evans (2010) highlight the reason of this is the securitization and structure finance product creates marketable securities out of the underlying non-marketable loans and complicated financial assets with relatively high-yielding assets and good credit ratings. In addition, King (2007) indicates that there was a strong demand for high yields assets such as MBSs and CDOs. Supporting to this point, Mizen (2008) argue that these securities, which were sold in the worldwide financial markets due to the high yields that attractive to investor. As a result, the subprime mortgage in the U.S spread internationally. Therefore, this clear that risk about uncertain of unfolding of the subprime crisis in the U.S was misprice and opaque in exposures and the complexity of structure finance product Evans (2010) highlight that the process of securitization and structure finance created very complex from the underlying loans, which led to the quality of these securities were opaque In addition, according to International Monetary Fund (2009), the securitization and structure finance have to become simpler, transparent in order to improve liquidity in the future 5. Conclusion As we know, the development of securitization and structure finance is vital for the financial market growth. It is undeniable that the role of securitization and structured finance products on financial market has caused the recent banking and financial crisis in the worldwide, particularly in developed countries. The recent crisis has been far more complex than earlier crisis because financial innovation has allowed new ways of packaging and reselling assets. From several decades, the securitization always changes their rules in order to achieve efficient and fair in their operation. Although there are some signs of improvement, in this sense, securitisation is still certainly unable to fulfil the objectives. However, if securitization works properly securitisation should be a welfare-improving tool which makes financial market more efficient and reduce transaction costs. Nowadays, there was an increase in securitisation which use by bank as a resort, beside with other innovations such as credit derivatives, which is the next step in the growth of securitization, and help to reduce barrier for investor. Given the rapid expansion of loan securitization (as well as the growth of loan sales and syndication), the results suggest that access to capital is less subject to variations in the supply of local deposits to banks than in the past. https://www.americansecuritization.com the importance of securitization

Would Partial Acquisition Of Foreign Investors Be Worthwhile For Banks Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1463 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Since 2005, the wave of foreign investment in Vietnam banking sector has started booming. However, most of investments are partial acquisition as Vietnamese regulation does not allow for foreign investors to capture more than 30% of stake in commercial banks, and for individual strategic investor the maximum is 15%, any individual strategic investor of 20% stake needs governmental approval. Since then, there have been 12 partial acquisitions in Vietnamese commercial bank sector. Don’t waste time! Our writers will create an original "Would Partial Acquisition Of Foreign Investors Be Worthwhile For Banks Finance Essay" essay for you Create order Most of tier 1 commercial banks (in term of chartered capital) now have foreign investment in its stake. This paper is designed to exam the impact of foreign partial acquisition on Vietnamese commercial banks performance and share price after acquisition. This can be used as precedent cases for other joint stock commercial banks to look at when they want to raise capital through issuing shares for foreign investors. It is noteworthy that the Vietnamese Government requires all commercial banks in Vietnam to have minimum chartered capital of VND3 trillion by the end of 2010. However, to date there are still about 28 joint stock commercial banks out of 38 commercial banks have not meet the requirements on minimum chartered capital. And most of them are now interested in selling stake for foreign strategic investors to increase its chartered capital. Research aim/ objectives and Term of reference The aim of this paper is clearly stated in the title which is to exam if partial acquisition of foreign investors worthwhile for Vietnamese commercial banks, at the aspects of share price and post financial performance. Thus, its objectives are to answer the following questions: If partial acquisition would cause share price of targets (Vietnamese commercial banks) to fall or rise around the announcement of acquisition If partial acquisition improve or worsen the financial performance of targets after acquisition In order to achieve the research aim and objectives of this research paper, the term of reference set for this paper would be: Review the literatures on share price analysis around the acquisition announcement period, and on performance analysis after acquisition to find out how they would change Looking at more specific case of Vietnamese joint stock commercial banks, particularly looking at secondary data of share price around the acquisition announcement and financial performance before and after acquisition Initial literature review Review for acquisition/partial acquisition Acquisition is the takeover of another firms assets or stock (acquiring/target firms). This is stock/assets for cash transaction. In the acquisition, the acquirer firm will become the owner/shareholder of acquiring firm. The acquisition can defined as hostile takeover or friendly take over. Mikkelson Ruback (1985) defined partial acquisition is the purchase of more than 5% block of shares. Akhigbe, and others (2004) also defined partial acquisition as the acquisition of less than 50% of targets ownership. Meyer and Tran (2006) postulates that not many scholars pay attention in the important of partial acquisition. Some empirical studies on the important of partial acquisition as the entry mode when firms enter emerging/transition markets can be found in the works of Barkema Vermeulen, 1998; Chen Hennart, 2004; Duarte Garcia-Canal, 2004; Meyer Tran, 2006 It is notheworthy that in studies of Barkema vermeulen (1998), the result shoe that partial ownership (partial acquisi tion) is favoured in high risk countries and in countries that impose legal restrictions on foreign ownership. This can explain the growth of foreign partial investment in Vietnamese banking sector. Review for share price analysis Mikkelson and Ruback (1985) investigated and analyzed the share price of 473 companies in the U.S. during the period of 1978 and 1980. Their findings show the increase in share prices of target firms after the announcement of partial acquisition. Jensen and Ruback(1983, cited in Cheung at el, 2009) review 13 studies on the abnormal returns around takeover period and found that the average excess returns on stock price are of 30% and 20% for the successful tender offer and mergers. The studies in 1990s yet show contradicting result. Frank et al (1991, quoted in Cheung at el, 2009) shows no evidence to support earlier argument of the increase in abnormal return of target firm after three years since the bid date. Moore (1997) also studied on acquisition transactions of banks during June 1993 and July 1996. Moores study indicates that the share prices of target banks had all negative return associated with the likelihood of being acquired. According to study (2009) of Cheung and ot hers on listed companies in Asia during 1990s, the target firms price responses (in term of CARR) (-2.5%) in the period before the announcement, and (-5.2%) in the period after announcement. The difference between studies in 1980s and 1990s is shown. This paper will investigate whether the recent studies (1990s) hold for partial acquisition in Vietnamese commercial banks. Review for post performance Madden (1981), and Mikkelson and Ruback (1985) studies had shown the positive effect for target firms after partial acquisition in U.S market (quoted in Zhu and others, 2010). However, the later studies and research in 1990s shows different point of view. The later study of Eyssell (1990) shows no significant change of target firms partial acquisition post-performance in US. Another studies of Longhran and Vijih (1997) also come to the same view that acquisition resulted in significant negative performance over time for the acquiring firm. And that is the research gap on post performance of partial acquisition. It seems that the post performance of partial acquisition will be different among various industries and various timing. This paper will exam the post performance of target firms in emerging banking sector in Vietnam in order to see how the performance affected after partial acquisition. Intended methodology To answer the research questions mentioned above, the research will be based on positivism stand with secondary data being collected for the purpose of analysis on share price and post performance. And it will be comparative design. The analysis will be based on cross-sectional analysis which will compare the share price and performance of target firms before and after acquisition; and the share price and post performance of target firms with those of relevant commercial banks with no foreign partial acquisition The secondary data will be collected from reliable sources i.e banks websites, stock exchanges websites, other possible sources such as State Securities Commissions, Ministry of Finance. the sample sizes will include total 12 partial acquisition deals of more than 10% stake in Vietnamese commercial joint stock banks . The sample of control group consists of 6-10 commercial banks (where as information is available). Note that, due to limitation in information of share pri ces, the research might not include all stock information of sample commercial banks. For share price analysis, all stocks that are unlisted will be eliminated from the sample size. Up to date there are only 8 listed commercial banks, of which 3 commercial listed banks will be in control group sample. The share price of 2 listed banks with partial acquisition will be analyzed . It excludes 3 others listed banks with partial acquisition because those were listed on stock exchange after 1-2 years of the acquisition date, and with these cases, the share price analysis before and after acquisition can not be measured. The analysis on share price would be based on the AAR (accumulated abnormal return). For performance descriptive analysis, this will be based on financial ratios for banks to avoid the difference in years before and after the acquisition taken place. Those ratios are: ROA, ROE, liquidity, net gearing, cost to income ration, loans to total asset ratio, credit risk, diver sity earnings, off-balance sheet, loan to deposit After the analysis on share price and financial performance through the calculation of ratios, T-test will be conducted to test the relationship between financial performance before and after acquisition, and also post performance with other commercial banks having no partial foreign acquisition The result of this research considered to be valid as the choice of sample is considered to be appropriate and representable with appropriate analysis technique. Data present in the tables is also considered to be reliable since data are collected from reliable sources and audited financial statements. Thus, if the research is repeated, the consistent results are expected. Timescales The research and reading from this project will be started from December but not intensively. The intensive work will be taken place in mid February 2011, and to be finished in mid August 2011, about two weeks earlier than the expected deadline in end of August 2011. Below is the gantt chart specifies the timeframe for this projects Timetable for thesis work (Unit: days): Reference Zhu, PengCheng, Jog, V., Otchere, I. (2010) Partial acquisition in emerging market: A test of the strategic market entry and corportate control hypotheses. Journal of Corporate Finance. doi:10.1016/j.jcorpfin.2010.09.003 Hannan, H. T., and Pilloff, J. S (2009) Acquisition Targets and Motives in the Banking Industry. Journal of Money, Credit and Banking, Vol. 41, No. 6, pp.1167 1187 Akhigbe, A., Madura, J., and Spencer, C. (2004) Partial acquisition, corporate ocntrol, and performance. Applied Financial Economics, Vol. 14, pp. 847 857