Understanding How the Supply Curve Works

Obesity Among Children and Adolescents - 2038 Words

Charvi Patel April 7th, 2010 Obesity among Children and Adolescents Obesity has been a controversial issue for years. Childhood obesity is already an epidemic in some areas and is on the rise in others. Although rare in the past, obesity is now amongst some of the most widespread issues affecting our children and adolescents living in the United States today. Childhood obesity is harmful to not only the child’s present lifestyle but it also affects the child’s future. Obesity in children is on the rise due to parenting style, inadequate exposure to healthy foods at a young age, availability of unhealthy foods, lack of education and awareness of the side effects and risks, and an increase in sedentary behavior. Obesity is a serious†¦show more content†¦Childhood obesity can affect the child’s health not only at the current time but also in the future. It can lead to many early onset health problems and complications. Obesity in children and teens has been found to be the leading cause of pediatric hypertension (high blood pressure); it increases the risk of coronary heart disease and stress on weight bearing joints, and is associated with Type II diabetes mellitus. But these health complications aren’t the only consequences of childhood obesity. It can also lead to social and psychological problems in the child such as a low self-esteem and affect relationships with peers, which can lead to psychological health disorders related to weight such as bulge eating, bulimia, and anorexia. The child or adolescents life can be put in danger by multiple unhealthy food choices that have lead to this epidemic of childhood obesity. The popularity of television, computers, and video games translates into an increasingly sedentary (inactive) lifestyle for many children in the United States. The sedentary behavior in a child and adolescents daily routine is a major contributing factor to the increasing rates of childhood obesity. The media may decrease the time children spend engaging in physical activities, which in turn lowers the child’s metabolic rates. Several studies have shown a positive association between the amount time spent viewing television and the increase in the prevalence ofShow MoreRelatedObesity Among Children, Adolescents And Adults845 Words   |  4 PagesObesity among children, adolescents and adults has emerged as one of the most serious public health concerns in the 21st century. Being overweight or being considered obese is typically a direct result from daily lifestyle choices, the consequences of which gradually accumulate. Genetics and social factors such as socio-economic stat us, race/ethnicity, media and marketing as well as the physical environment also influence energy consumption and expenditure (KoyuncuoÄŸlu Gà ¼ngà ¶r, 2014). Obesity seemsRead MorePrevalence Of Overweight And Obesity Essay1249 Words   |  5 Pagesoverweight/obesity among parents of children entering childhood obesity treatment and to evaluate changes in the parents’ weight during their child’s treatment (Trier, 2016). The study included the parents of 1,125 children and adolescents (aged 3-22) who were enrolled in a children obesity treatment program. They began by taking the heights and weights of the children and the BMI scores were calculated. After 2.5 years of treatment, the mean weight was taking from the parents of 664 children. The resultsRead MoreThe Importance Of Obesity Among Adolescents954 Words   |  4 PagesIn today’s society, obesity has become an increasing problem. Even more concerning is the prevalence of obesity among adolescents, whi ch has many health implications. Obesity in adolescents was not widely studied until recent years, and can be defined as an excess of body fat caused by an imbalance of energy (food) intake and energy output (Cummins and Macintyre, 2006). According to the Center for Disease Control and Prevention (CDC), overweight is the body mass index (BMI) at or above the 85th percentileRead MorePreventing Obesity among School Children through Healthier School Meals1323 Words   |  5 PagesPreventing Obesity Among School Children through Healthier School Meals Obesity and overweight are among the pressing health problems among children and adolescents in the developed world. Obesity refers to an excess amount of body fat whereas overweight can be measured by the BMI index or height-weight ratio. According to the WHO (2012), obesity and overweight are the fifth largest risk for global deaths. Introduction Obesity and overweight among children and adolescents has increasedRead MoreAnalysis Of The Satirical Street Art That Sends Messages Of Awareness Of The Corrupt Society1626 Words   |  7 Pageshas remarked that â€Å" a recent survey or North American males found 42% were overweight, 34% were critically obese and 8% ate the survey.† With the rising awareness and prevalence, obesity has become an epidemic. In the United States alone, one of every five Americans are overweight, and one of every five are obese. Among the younger ages of childhood and adolescence, the National Health and Nutrition Examination reported that 17% of kids â€Å"age six through nineteen are obese.† This problem, of courseRead MoreEssay on Childhood Obesity1599 Words   |  7 PagesChildhood obesity is one of the most serious public health challenges of the 21st century. The problem is global and is steadily affecting many low- and middle-income families particularly in the United States. The socioeconomic status of these families contributes to the childhood obesity epidemic. Summary of Article 1 The article, â€Å"Beliefs about the Role of Parenting in Feeding and Childhood Obesity among Mothers of Lower Socioeconomic Status† is a study that was conducted by Alison KalinowskiRead MoreThe Growing Issue With Childhood Obesity1237 Words   |  5 PagesThe Growing Issue With Childhood Obesity Carmen Solivan- Amengual American Public University The Growing Issue With Childhood Obesity Although childhood obesity is a serious issue, there has been a great decrease over the past decade, thanks to research on childhood obesity and programs that help decrease the number of children and adolescents who are overweight. Childhood obesity can have long term and lasting effects on the overall well-being of a child, including cardiovascular disease, high riskRead MoreThe Problem of Adolescent Obesity in Malaysia Essay699 Words   |  3 PagesNowadays, obesity becomes a common, well-known health problem among adolescents. There was a significant rise in obesity prevalence in children and adolescent between 1999 and 2010. In 2007 to 2010, almost 17% of United State children and adolescents aged 2 through 19 years old had a body mass index (BMI) higher than or equal to the 95th percentile of the BMI-for-age growth charts in which were classified as obese (Ogden et al., 2012). This was also happened to adolescents in Malaysia where nearlyRead MoreChildhood Obesity Is Becoming A Major Public Health Crisis Essay1375 Words   |  6 PagesChildhood obesity is becoming a major public health crisis in both children and adults. The American Heritage dictionary simply defines obesity as a condition of increased body weight that is due to excessive build up of fat in the body. The CDC (Center for Disease Control), use the BMI (Basal Metabolic Index) and CDC growth charts to determine obesity and overweight in adolescents and children. The BMI-for-age percentile is determined by plotting the BMI value. Using this chart, obesity is definedRead MoreThe Field Of Psychosocial Epidemiology Essay1369 Words   |  6 Pagesvariables associated with a chronic health condition. Obesity is a chronic health condition characterized by presence of excess of body fat. Obesity is measured by using Body Mass Index (BMI) in children 2 years of age and older. The BMI is calculated by the body weight (in kilograms) divided by the height squared in meters. In adults, a BMI between 25 and 30 kg/m2 is regarded as overweight and a BMI greater or equal to 30 kg/m2 is regarded as obese. Obesity in adults is subcategorized as class I (BMI ≠¥30

Project on Comparison of Public and Private Sector Banking Free Essays

string(77) " ratio is more indicative of thequality of credit decisions made by bankers\." Genesis The banking sector has been undergoing a complex, but comprehensive phase of  restructuring since 1991, with a view to make it sound, efficient, and at the same time it isforging its links firmly with the real sector for promotion of savings, investment and  growth. Although a complete turnaround in banking sector performance is not expected till thecompletion of reforms, signs of improvement are visible in some indicators under theCAMELS framework. Under this bank is required to enhance capital adequacy, strengthenasset quality, improve management, increase earnings and reduce sensitivity to variousfinancial risks. We will write a custom essay sample on Project on Comparison of Public and Private Sector Banking or any similar topic only for you Order Now The almost simultaneous nature of these developments makes it difficult todisentangle the positive impact of reform measures. In 1994, the RBI established the Board of Financial Supervision, which operates as a unit of  the RBI. The entire supervisory mechanism was realigned to suit the changing needs of astrong and stable financial system. The supervisory jurisdiction of the BFS was slowlyextended to the entire financial system barring the capital market institutions and theinsurance sector. Its mandate is to strengthen supervision of the financial system byintegrating oversight of the activities of financial services firms. The BFS has alsoestablished a sub-committee to routinely examine auditing practices, quality, and coverage. In 1995, RBI had set up a working group under the chairmanship of Shri S. Padmanabhan toreview the banking supervision system. The Committee gave certain recommendations and  based on such suggestions a rating system for domestic and foreign banks based on theinternational CAMELS model combining financial management and sensitivity to marketrisks element was introduced for the inspection cycle commencing from July 1998. Itrecommended that the banks should be rated on a five point scale (A to E) based on the linesof international CAMELS rating model. CAMELS rating model measures the relativesoundness of a bank. bj ectives of the Pro j ect Study ?To study the Financial Performance of the b anks.? y To study the strength of using CAMELS framework as a tool of Performanceevaluation for Commercial banks y To describe the CAMELS model of ranking banking institutions, so as to analyze  the  performance of various bank. R ationale In the recent years the financial system especially the banks have undergone numerouschanges in the form of reforms, regulations norms. The attempt here is to see how variousratios have been used and interpreted to reveal a bank ¶s performance and how this particular  model encompasses a wide range of parameters making it a widely used and accepted modelin today ¶s scenario. Data Collection y Primary Data : Primary data was collected  from the Banks ¶ balance sheets and profitand loss statements. y Secondary Data : Secondary data on the subject was collected from ICFAI journals,Banks ¶ annual reports and RBIM ethodology As long as the methodology is concerned, we have made use of a framework calledCAMELS FRAMEWORK. There are so many models of evaluating the performance of the  banks, but I have chosen the CAMELS Model for this purpose. I have gone through several  books, journals and websites and found it the best model because it measures the  performance of the banks from each parameter i. e. Capital, Assets, Management, Earnings,Liquidity and Sensitivity to  Market risks. CAMELS evaluate banks on  the following six parameters : -? Capital Adequacy (CRAR)? Asset Quality (GNPA)? Management Soundness (MGNT)? Earnings profitability (ROA)? Liquidity (LQD)? Sensitivity to Market  Risks (? ) websitDuring an on-site bank exam, supervisors gather private information, such as details on  problem loans, with which to evaluate a bank’s financial condition and to monitor itscompliance with laws and regulatory policies. A key product of such an exam is asupervisory rating of the bank’s overall condition, commonly referred to as a CAMELSrating. The acronym â€Å"CAMEL† refers to the five components of a bank’s condition that areassessed : Capital adequacy, Asset quality, Management, Earnings, and Liquidity. A sixthcomponent, a bank’s Sensitivity to market risk was added in 1997; hence the acronym waschanged to CAMELSAMELS is basically a ratio-based model for evaluating the performance of banks. Variousratios forming this model are explained below : Capital base of financial institutions facilitates depositors in forming their risk perceptionabout the institutions. Also, it is the key parameter for financial managers to maintainadequate levels of capitalization. The most widely used indicator of capital adequacy iscapital to risk-weighted assets ratio (CRWA). According to Bank Supervision RegulationCommittee (The Basle Committee) of Bank for International Settlements, a minimum 9  percent CRWA is required. Thus, it is useful to track capital-adequacy ratios that take intoaccount the most important financial risks? foreign exchange, credit, and interest raterisks? by assigning risk weightings to the institution ¶s assets. A sound capital basestrengthens confidence of depositors. This ratio is used to protect depositors and promote thestability and efficiency of financial systems around the world. Capital R isk Adequacy R atio: CRAR is a ratio of Capital Fund to Risk Weighted Assets. Reserve Bank of India prescribesBanks to maintain a minimum Capital to risk-weighted Assets Ratio (CRAR) of 9 % withregard to credit risk, market risk and operational risk on an ongoing basis, as against 8 %  prescribed in Basel documents. Component-wise Capital Adequacy of ScheduledCommercial Banks (As at end- M arch) Capital to R isk W eighted Assets R atio- Bank Group-wise Total capital includes tier-I capital and Tier-II capital. Tier-I capital includes paid up equitycapital, free reserves, intangible assets etc. Tier-II capital includes long term unsecuredloans, loss reserves, hybrid debt capital instruments etc. The higher the CRAR, the stronger  is considered a bank, as  it ensures high safety against bankruptcy. Asset quality determines the robustness of financial institutions against loss of value in theassets. The deteriorating value of assets, being prime source of banking problems, directly  pour into other areas, as losses are eventually written off against capital, which ultimately  jeopardizes the earning capacity of the institution. With this backdrop, the asset quality isgauged n relation to the level and severity of non-performing assets, adequacy of  Ã‚  provisions, recoveries, distribution of assets etc. Popular indicators include non-performingloans to advances, loan default to total advances, and recoveries to loan default ratios. One of the indicators for asset quality is the ratio of non-performing loans to total loans(GNPA). The gross non-performing loans to gro ss advances ratio is more indicative of thequality of credit decisions made by bankers. You read "Project on Comparison of Public and Private Sector Banking" in category "Essay examples" Higher GNPA is indicative of poor creditdecision-making. N PA: N on-Performing Assets: Advances are classified into performing and non-performing advances (NPAs) as per RBIguidelines. NPAs are further classified into sub-standard, doubtful and loss assets based onthe criteria stipulated by RBI. An asset, including a leased asset, becomes non-performingwhen it ceases to  generate income for the Bank. An NPA is a loan or an advance where : 1. Interest and/or installment of principal remains overdue for a period of more than 90days in respect of a term loan;2. The account remains â€Å"out-of-order† in respect of an Overdraft or Cash Credit(OD/CC);3. The bill remains overdue for  a period of more than  90 days in case of bills purchasedand discounted;4. A loan granted for short duration crops will be treated as an NPA if the installmentsof principal or interest thereon remain overdue  for two crop seasons; and5. A loan granted for long duration crops will be treated as an NPA if the installmentsof principal or interest thereon remain overdue  for one crop season. The Bank classifies an account as an NPA only if the interest imposed during any quarter isnot fully repaid within 90 days from the end of the relevant quarter. This is a key to thestability of the banking sector. There should be no hesitation in stating that Indian bankshave done a remarkable job in containment of non-performing loans (NPL) considering theoverhang issues and overall difficult environment. For 2008, the net NPL ratio for the Indianscheduled commercial banks at 2. 9 per cent is ample testimony to the impressive efforts  being made by our banking system. In fact, recovery management is also linked to the  banks ¶ interest margins. The cost and recovery management supported by enabling legalframework hold the key to future health and competitiveness of the Indian banks. No doubt,improving recovery-management in India is an area requiring expeditious and effectiveactions in legal, institutional and judicial processes. Management of financial institution is generally evaluated in terms of capital adequacy,asset quality, earnings and profitability, liquidity and risk sensitivity ratings. In addition,  performance evaluation includes compliance with set norms, ability to plan and react tochanging circumstances, technical competence, leadership and administrative ability. Ineffect, management rating is just an amalgam of performance in the above-mentioned areas. Sound management is one of the most important factors behind financial institutions ¶Ã‚  performance. Indicators of quality of management, however, are primarily applicable toindividual institutions, and cannot be easily aggregated across the sector. Furthermore, giventhe qualitative nature of management, it is difficult to judge its soundness just by looking atfinancial accounts of the banks. Nevertheless, total expenditure to total income and operating expense to total expense helpsin gauging the management quality of the banking institutions. Sound management is key to  bank performance but is difficult to measure. It is primarily a qualitative factor applicable toindividual institutions. Several indicators, however, can jointly serve? as, for instance,efficiency measures do-as an indicator of management  soundness. The ratio of non-interest expenditures to total assets (MGNT) can be one of the measures toassess the working of the management. . This variable, which includes a variety of expenses,such as payroll, workers compensation and training investment, reflects the management  policy stance. E fficiency R atios demonstrate how efficiently the company uses its assets and howefficiently the company manages its operations. Indicates the relationship between assets and revenue. ? Companies with low profit margins tend to have high asset turnover, those with high  profit margins have low asset turnover – it indicates pricing strategy. ? This ratio is more useful for growth companies to check if in fact they are growingrevenue in proportion to sales. Asset Turnover Analysis: This ratio is useful to determine the amount of sales that are generated from each rupee of  assets. As noted above, companies with low profit margins tend to have high asset turnover,those with high profit margins have low asset turnover. Earnings and profitability, the prime source of increase in capital base, is examined withregards to interest rate policies and adequacy of provisioning. In addition, it also helps tosupport present and future operations of the institutions. The single best indicator used togauge earning is the Return on Assets (ROA), which is net income after taxes to total assetratio. Strong earnings and profitability profile of banks reflects the ability to support present andfuture operations. More specifically, this determines the capacity to  absorb losses, finance itsexpansion, pay dividends to its shareholders, and build up an adequate level of capital. Being front line of defense against erosion of capital base from losses, the need for highearnings and profitability can hardly be overemphasized. Although different indicators areused to serve the purpose, the best and most widely used indicator is Return on Assets(ROA). However, for in-depth analysis, another indicator Net Interest Margins (NIM) is alsoused. Chronically unprofitable financial institutions risk insolvency. Compared with mostother indicators, trends in profitability can be more difficult to interpret-for instance,unusually high profitability can reflect excessive risk taking. R O A- R eturn on Assets: An indicator of how  profitable a company is relative to its total assets. ROA gives an  idea asto how efficient management is at using its assets to generate earnings. Calculated bydividing a company’s annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as â€Å"return on investment†. ROA tells what earnings were generated from invested capital (assets). ROA for publiccompanies can vary substantially and will be highly dependent on the industry. This is why when using ROA as a comparative measure, it is best to compare it against a company’s  previous ROA numbers or the  ROA of a similar company. The assets of the company are comprised of both debt and equity. Both of these types of  financing are used to fund the operations of the company. The ROA figure gives investorsan idea of how effectively the company is converting the money it has to invest into netincome. The higher the ROA number, the better, because the company is earning moremoney on less investment. For example, if one company has a net income of $1 million andtotal assets of $5 million, its ROA is 20%; however, if another company earns the sameamount but has total assets of $10 million, it has an ROA of 10%. Based on this example,the first company is better at converting its investment into profit. When you really think  about it, management’s most important job is to make wise choices in allocating itsresources. Anybody can make a profit by throwing a ton of money at a problem, but veryfew managers excel at  making large profits with little investment. R eturn on Assets and R eturn on E quity of SCBs- Bank Group-wise An adequate liquidity position refers to a situation, where institution can obtain sufficientfunds, either by increasing liabilities or by converting its assets quickly at a reasonable cost. It is, therefore, generally assessed in terms of overall assets and liability management, asmismatching gives rise to liquidity risk. Efficient fund management refers to a situationwhere a spread between rate sensitive assets (RSA) and rate sensitive liabilities (RSL) ismaintained. The most commonly used tool to evaluate interest rate exposure is the Gap  between RSA and RSL,  while liquidity is gauged by liquid to total asset ratio. Initially solvent financial institutions may be driven toward closure by poor management of  short-term liquidity. Indicators should cover funding sources and capture large maturitymismatches. The term liquidity is used in various ways, all relating to availability of, accessto, or convertibility into cash. ? An institution is said to have liquidity if it can easily meet its needs for cash either  Ã‚  because it has cash on  hand or can otherwise raise or borrow cash. ? A market is said to be liquid if the instruments it trades can easily be bought or soldin quantity with little impact on market prices. ? An asset is said to be liquid if the  market for that asset is liquid. The common theme in all three contexts is cash. A corporation is liquid if it has ready accessto cash. A market is liquid if participants can easily convert positions into cash? or  conversely. An asset is liquid if it can easily be converted to cash. The liquidity of aninstitution depends on : y the institution’s short-term need for cash; y cash on hand; y available lines of credit; y the liquidity of the  institution’s assets; y The institution’s reputation in the marketplace? how willing will counterparty is totransact trades with or lend to the  institution? The liquidity of a market is often measured as the size of its bid-ask spread, but this is animperfect metric at best. More generally, Kyle (1985) identifies three components of marketliquidity : ? Tightness is the bid-ask spread; ? Depth is the volume of transactions necessary to  move prices; ? Resiliency is the speed with which prices return to equilibrium following a largetrade. Examples of assets that tend to be liquid include foreign exchange; stocks traded in theStock Exchange or recently issued Treasury bonds. Assets that are often illiquid includelimited partnerships, thinly traded bonds or real estate. Cash maintained by the banks and balances with central bank, to total asset ratio (LQD) isan indicator of bank’s liquidity. In general, banks with a larger volume of liquid assets are  perceived safe, since these assets would allow  banks to meet unexpected  withdrawals. Credit deposit ratio is a tool used to study the liquidity position of the bank. It is calculated  by dividing the cash held in different forms by total deposit. A high ratio shows that there ismore amounts of liquid cash with the bank to met its clients cash withdrawals. It refers to the risk that changes  in market conditions could adversely impact earnings and/or  capital. Market Risk encompasses exposures associated with changes in interest rates, foreignexchange rates, commodity prices, equity prices, etc. While all of these items are important,the primary risk in most banks is interest rate risk (IRR), which will be the focus of thismodule. The diversified nature of bank operations makes them vulnerable to various kindsof financial risks. Sensitivity analysis reflects institution ¶s exposure to interest rate risk,foreign exchange volatility and equity price risks (these risks are summed in market risk). Risk sensitivity is mostly evaluated in terms of management ¶s ability to monitor and controlmarket risk. Banks are increasingly involved in diversified operations, all of which are subject to marketrisk, particularly in the setting of interest rates and the carrying out of foreign exchangetransactions. In countries that allow banks to make trades in stock markets or commodityexchanges, there is also a  need to monitor indicators of equity and commodity price risk. Sensitivity to Market Risk is a recent addition to the ratings parameters and reflects thedegree to which changes in interest rates, exchange rates, commodity prices and equity  prices can affect earnings and  hence the bank ¶s capital. It  is measured by Beta (? . 1. ? ;1, depicts that changes in the firm are less than the changes in the market. LessSensitive2. ? =1, depicts that there is equivalent change in the firm with the changes in themarket Equally Sensitive. 3. ? ;1, depicts that changes in the firm are more than the changes in the market. Highly Sensitive. The Bank The word bank means an organization where people and business can invest or borrowmoney; change it to foreign currency etc. According to Halsbury ? A Banker is an individual,Partnership or Corporation whose sole pre-dominant business is banking, that is the receiptof money on current or deposit ccount, and the payment of cheque drawn and the collectionof cheque paid in by a customer.  ¶Ã‚ ¶ The O rigin and Use of Banks The Word  µBank ¶ is derived from the Italian word  µBanko ¶ signifying a bench, which waserected in the market-place, where it was customary to exchange money. The Lombard Jewswere the first to practice this exchange business, the first bench having been established inItaly A. D. 808. Some authorities assert that the Lombard merchants commenced the  business of money-dealing, employing bills of exchange as remittances, about the beginningof the thirteenth century. About the middle of the twelfth century it became evident, as the advantage of coinedmoney was gradually acknowledged, that there must be some controlling power, somecorporation which would undertake to keep the coins that were to bear the royal stamp up toa certain standard of value; as, independently of the  µsweating ¶ which invention may place tothe credit of the ingenuity of the Lombard merchants- all coins will, by wear or abrasion,  become thinner, and consequently less valuable; and it is of the last importance, not only for  the credit of a country, but for the easier regulation of commercial transactions, that themetallic currency be kept as nearly as possible up to the legal standard. Much unnecessarytrouble and annoyance has been caused formerly by negligence in this respect. The gradualmerging of the business of a goldsmith into a bank appears to have been the way in which  banking, as we now understand the term, was introduced into England; and it was not unti llong after the establishment of banks in other countries-for state purposes, the regulation of  the coinage, etc. that any large or similar institution was introduced into England. It is onlywithin the last twenty years that printed cheques have  been in use in that establishment. Firstcommercial bank was Bank of Venice which was established in 1157  in Italy. Banking sector, the world over, is known for the adoption of multidimensional strategiesfrom time to time with varying degrees of success. Banks are very important for the smoothfunctioning of financial markets as they serve as repositories of vital financial informationand can potentially alleviate the problems created by information asymmetries. From acentral bank ¶s perspective, such high-quality disclosures help the early detection of  Ã‚  problems faced by banks in the market and reduce the severity of market disruptions. Consequently, the RBI as part and parcel of the financial sector deregulation, attempted toenhance the transparency of the annual reports of Indian banks by, among other things,introducing stricter income recognition and asset classification rules, enhancing the capitaladequacy norms, and by requiring a number of additional disclosures sought by investors tomake better cash flow and risk assessments. [Source : RBI Website] BAS EL – II ACC O R D Bank capital framework sponsored by the world’s central banks designed to promoteuniformity, make regulatory capital more risk sensitive, and promote enhanced risk  management among large, internationally active banking organizations. The InternationalCapital Accord, as it is called, will be fully effective by January 2008 for banks active ininternational markets. Other banks can choose to â€Å"opt in,† or they can continue to follow theminimum capital guidelines in the original Basel Accord, finalized in 1988. The revisedaccord (Basel II) completely overhauls the 1988 Basel Accord and is based on threemutually supporting concepts, or  Ã¢â‚¬Å"pillars,† of capital adequacy. The first of these pillars is anexplicitly defined regulatory capital requirement, a minimum capital-to-asset ratio equal toat least 8% of risk-weighted assets. Second, bank supervisory agencies, such as theComptroller of the Currency, have authority to adjust capital levels for individual banksabove the 9% minimum when necessary. The third supporting pillar calls upon marketdiscipline to supplement reviews by banking agencies. Basel II is the second of the Basel Accords, which are recommendations on banking lawsand regulations issued by the Basel Committee on Banking Supervision. The purpose of  Basel II, which was initially published in June 2004, is to create an international standardthat banking regulators can use when creating regulations about how much capital banksneed to put aside to guard against the types of financial and operational risks banks face. Advocates of Basel II believe that such an international standard can help protect theinternational financial system from the types of problems that might arise should a major  Ã‚  bank or a  series of banks collapse. In practice, Basel II attempts to accomplish this by settingup rigorous risk and capital management requirements designed to ensure that a bank holdscapital reserves appropriate to the risk the bank exposes itself to through its lending andinvestment practices. [Source : RBI Website] The final version aims at: 1. Ensuring that capital allocation is more risk sensitive;2. Separating operational risk from credit risk, and quantifying both;3. Attempting to align economic and regulatory capital more closely to reduce thescope for regulatory arbitrage. While the final accord has largely addressed the regulatory arbitrage issue, there are stillareas where regulatory capital requirements will diverge from the economic. Basel II has largely left unchanged the question of how to actually define bank capital,which diverges from accounting equity in important respects. The Basel I definition, asmodified up to the present, remains in place. The Accord in operation Basel II uses a â€Å"three pillars† concept y inimum capital requirements (addressing risk), y supervisory review and y market discipline  ± to promote greater stability in the financial system. The Basel I accord dealt with only parts of each of these pillars. For example : with respectto the first Basel II pillar, only one risk, cre dit risk, was dealt with in a simple manner whilemarket risk was an afterthought; operational risk was not  dealt with at all. The First Pillar The first pillar deals with maintenance of regulatory capital calculated for three major  components of risk that a bank faces : credit risk, operational risk and market risk. Other  risks are not considered fully quantifiable at this stage. The credit risk component can be calculated in three different ways of varying degree of  sophistication, namely standardized approach, Foundation IRB and Advanced IRB. IRBstands for â€Å"Internal Rating-Based Approach†. For operational risk, there are three different approaches – basic indicator approach,standardized approach and advanced measurement approach. For market risk the preferredapproach is VaR (value at  risk). As the Basel II recommendations are phased in by the banking industry it will move fromstandardized requirements to more refined and specific requirements that have beendeveloped for each risk category by each individual bank. The upside for banks that dodevelop their own bespoke risk measurement systems is that they will be rewarded with  potentially lower risk capital requirements. In future there will be closer links between theconcepts of economic profit and regulatory capital. Credit Risk can be calculated by using one of three approaches : 1. Standardized Approach2. Foundation IRB (Internal Ratings Based) Approach3. Advanced IRB ApproachThe standardized approach sets out specific risk weights for certain types of credit risk. Thestandard risk weight categories are used under Basel 1 and are 0% for short termgovernment bonds, 20% for exposures to OECD Banks, 50% for residential mortgages and 100% weighting on commercial loans. A new 150% rating comes in for borrowers with poor  credit ratings. The minimum capital requirement (the percentage of risk weighted assets to  be held as capital) has remains at  8%. For those Banks that decide to adopt the standardized ratings approach they will be forced torely on the ratings generated by external agencies. Certain Banks are developing the IRBapproach as a result. The Second Pillar The second pillar deals with the regulatory response to the first pillar, giving regulatorsmuch improved ‘tools’ over those available to them under Basel I. It also provides aframework for dealing with all the other risks a bank may face, such as systemic risk,  pension risk, concentration risk, strategic risk, reputation risk, liquidity risk and legal risk,which the accord combines under the title of residual risk. It gives banks a power to reviewtheir risk management  system. The Third Pillar The third pillar greatly increases the disclosures that the bank must make. This is designedto allow the market to have a better picture of the overall risk position of the bank and toallow the counterparties of the bank to price and deal appropriately. The new Basel Accordhas its foundation on three mutually reinforcing pillars that allow banks and bank  supervisors to evaluate properly the various risks that banks face and realign regulatorycapital more closely with underlying risks. The first pillar is compatible with the credit risk,market risk and operational risk. The regulatory capital will be focused on these three risks. The second pillar gives the bank responsibility to exercise the best ways to manage the risk  specific to that bank. Concurrently, it also casts responsibility on the supervisors to reviewand validate banks ¶ risk measurement models. The third pillar on market discipline is usedto leverage the influence that other market players can bring. This is aimed at improving thetransparency in banks and  improves reporting. State Bank of India is the largest banking and financial services company in India, by almostevery parameter – revenues, profits, assets, market capitalization, etc. The bank traces itsancestry to British India, through the Imperial Bank of India, to the founding in 1806 of theBank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. TheGovernment of India nationalized the Imperial Bank of India in 1955, with the ReserveBank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, theGovernment took over the  stake held by the Reserve Bank of India. SBI provides a range of banking products through its vast network of branches in India andoverseas, including products aimed at NRIs. The State Bank Group, with over 16,000  branches, has the largest banking branch network in India. With an asset base of $260 billionand $195 billion in deposits, it is a regional banking behemoth. It has a market share amongIndian commercial banks of about 20% in deposits and advances, and SBI accounts for  almost one-fifth of the nation’s loans. The total assets of the Bank increased by 9. 23% fromRs. 9,64,432. 08 crores at the end of March 2009 to Rs. 10,53,413. 3 crores as at end March2010. The Bank ¶s aggregate liabilities (excluding capital and reserves) rose by 8. 93% fromRs. 9,06,484. 38 crores on 31st March 2009 to Rs. 9,87,464. 53 crores on 31st March 2010. K ey performance I ndicators [Source : Annual Report, 2009-10]SBI has tried to reduce over-sta ffing by computerizing operations and â€Å"golden handshake†schemes that led to a flight of its best and brightest managers. These managers took theretirement allowances and then went on to become senior managers in new private sector ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a major  Ã‚  banking and financial services organization in India. It is the 4th largest bank in India andthe largest private sector bank in India by market capitalization. The bank also has a network  of 1,700+ branches (as on 31 March 2010) and about 4,721 ATMs in India and presence in19 countries, as well as some 24 million customers (at the end of July 2007). ICICI Bank isalso the largest issuer of credit cards in India. ICICI Bank’s shares are listed on the stock  exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of IndiaLimited; its ADRs trade on the New  York Stock Exchange (NYSE). [Source : Annual Report, 2009-10]The Bank is expanding in overseas markets and has the largest international balance sheetamong Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches andrepresentatives offices in 19 countries, including an offshore unit in Mumbai. This includeswholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which theHi SAVE savings brand is operated), offshore banking units in Bahrain and Singapore, anadvisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, andrepresentative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand,the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non- ResidentIndian) population in particular. History HDFC Bank was incorporated in the year of 1994 by Housing Development FinanceCorporation Limited (HDFC), India’s premier housing finance company. It was among thefirst companies to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) toset up a bank in the private sector. The Bank commenced its operations as a ScheduledCommercial Bank in January 1995 with the help of RBI’s liberalization policies. In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted byBennett, Coleman Co. / Times Group) was merged with HDFC Bank Ltd. , in 2000. Thiswas the first merger of two private banks in India. As per the scheme of amalgamationapproved by the shareholders of both banks and the Reserve Bank of India, shareholders of  Times Bank received 1  share of HDFC Bank for every 5. 75  shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Pun j a b aking its total branches to morethan 1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of thecombined e ntity is over Rs. 1,63,000 crore. The amalgamation added significant value toHDFC Bank in terms of increased branch network, geographic reach, and customer base,and a bigger pool of skilled manpower   Capital Adequacy [Source : Annual Report, 2009-10] The Industrial Development Bank of India Limited commonly known by its acronym IDBIis one of India’s leading public sector banks and 4th largest Bank in overall ratings. RBIcategorized IDBI as an â€Å"other public sector bank†. It was established in 1964 by an Act of  Parliament to provide credit and other facilities for the development of the fledgling Indianindustry. It is currently 10th largest development bank in the world in terms of reach with1210 ATMs, 720 branches and 486 centers. Some of the institutions built by IDBI are the National Stock Exchange of India (NSE), the  National Securities Depository Services Ltd (NSDL), the Stock Holding Corporation of  India (SHCIL), the Credit Analysis ; Research Ltd, the Export-Import Bank of India (EximBank), the Small Industries Development bank of India(SIDBI), the EntrepreneurshipDevelopment Institute of India, and IDBI BANK, which today is owned by the IndianGovernment, though for a brief period it was a private scheduled bank. The IndustrialDevelopment Bank of India (IDBI) was established on July 1, 1964 under an Act of  Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976,the ownership of IDBI was transferred to the Government of India and it was made the  principal financial institution for coordinating the activities of institutions engaged infinancing, promoting and developing industry in the country. Although Governmentshareholding in the Bank came down below 100% following IDBI ¶s public issue in July1995, the former continues to  be the major shareholder (current shareholding : 52. 3%). During the four decades of its existence, IDBI has been instrumental not only in establishinga well-developed, diversified and efficient ndustrial and institutional structure but alsoadding a qualitative dimension to the process of industrial development in the country. IDBIhas played a pioneering role in fulfilling its mission of promoting industrial growth throughfinanci ng of medium and long-term projects, in consonance with national plans and  priorities. Over the years, IDBI has enlarged its basket of products and services, coveringalmost the entire spectrum of industrial activities, including manufacturing and services. IDBI provides financial assistance, both in rupee and foreign currencies, for green-field  projects as also for expansion, modernization and diversification purposes. In the wake of  financial sector reforms unveiled by the government since 1992, IDBI evolved an array of  fund and fee-based services with a view to providing an integrated solution to meet theentire demand of financial and corporate advisory requirements of its clients Axis Bank, formally UTI Bank, is a financial services firm that had begun operations in1994, after the Government of India allowed new private banks to be established. The Bank  was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of  India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance CorporationLtd. , National Insurance Company Ltd. The New India Assurance Company, The OrientalInsurance Corporation and United India Insurance Company UTI-I holds a special positionin the Indian capital markets and has promoted many leading financial institutions in thecountry. The bank changed its name to Axis Bank in April 2007 to avoid confusion withother unrelated entities with similar name. After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the bank’s managingdirector and CEO on 20 April 2009. As on the year ended March 31, 2009 the Bank had atotal income of Rs 13,745. 04 crore (US$ 2. 93 billion) and a net profit of Rs. 1,812. 93 crore(US$ 386. 15 million). On February 24, 2010, Axis Bank announced the launch of ‘AXISCALL ; PAY on atom’, a unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based paymentservice over IVR. Axis Bank is one of the Big Four Banks of India, along with ICICI Bank,State Bank of India and HDFC Bank Branch Network At the end of March 2009, the Bank  has a very wide network of more than 835 branch offices and Extension Counters. Totalnumber of ATMs went up to 3595. The Bank has loans now (as of June 2007) account for asmuch as 70 per cent of the bank ¶s total loan book of Rs 2,00,000 crore. In the case of AxisBank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crorein June 2006 to around 23 per cent of loan book of Rs. 41,280 crore (as of June 2007). Evenover a longer period,  while the overall asset growth for  Axis Bank has been quite high and has matched that of the other banks, retail exposuresgrew at a slower pace. The bank, though, appears to have insulated such pressures. Interestmargins, while they have declined from the 3. 15 per cent seen in 2003-04, are still hoveringclose to the 3 per cent mark. Axis Bank, formally UTI Bank, is a financial services firm that had begun operations in1994, after the Government of India allowed new private banks to be established. The Bank  was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of  India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance CorporationLtd. , National Insurance Company Ltd. The New India Assurance Company, The OrientalInsurance Corporation and United India Insurance Company UTI-I holds a special positionin the Indian capital markets and has promoted many leading financial institutions in thecountry. The bank changed its name to Axis Bank in April 2007 to avoid confusion withother unrelated entities with similar name. After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the bank’s managingdirector and CEO on 20 April 2009. As on the year ended March 31, 2009 the Bank had atotal income of Rs 13,745. 04 crore (US$ 2. 93 billion) and a net profit of Rs. 1,812. 93 crore(US$ 386. 15 million). On February 24, 2010, Axis Bank announced the launch of ‘AXISCALL PAY on atom’, a unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based paymentservice over IVR. Axis Bank is one of the Big Four Banks of India, along with ICICI Bank,State Bank of India and HDFC Bank Branch Network At the end of March 2009, the Bank  has a very wide network of more than 835 branch offices and Extension Counters. Totalnumber of ATMs went up to 3595. The Bank has loans now (as of June 2007) account for asmuch as 70 per cent of the bank ¶s total loan book of Rs 2,00,000 crore. In the case of AxisBank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crorein June 2006 to around 23 per cent of loan book of Rs. 41,280 crore (as of June 2007). Evenover a longer period,  while the overall asset growth for  Axis Bank has been quite high and has matched that of the other banks, retail exposuresgrew at a slower pace. The bank, though, appears to have insulated such pressures. Interestmargins, while they have declined from the 3. 15 per cent seen in 2003-04, are still hoveringclose to the 3 per cent mark. Reserve Bank of India prescribes Banks to maintain a minimum Capital to risk weightedAssets Ratio (CRAR) of 9 percent with regard to credit risk, market risk and operational risk  on an ongoing basis, as against 8 percent prescribed in Basel Documents. Capital adequacyratio of the ICICI Bank was well above the industry average of 13. 97% t. CAR of HDFC  bank is below the ratio of ICICI bank. HDFC Bank ¶s total Capital Adequacy stood at15. 26% as of March 31, 2010. The Bank adopted the Basel 2 framework as of March 31,2009 and the CAR computed as per Basel 2 guidelines stands higher against the regulatoryminimum of 9. 0%. HDFC CAR is gradually increased over the last 5 year and the capital adequacy ratio of  Axis bank is the increasing by every 2 year. SBI has maintained its CAR around in the rangeof 11 % to 14 %. But IDBI should reconsider their business as its CAR is falling YOY (year  on year). Higher the ratio the banks are in a comfortable position to absorb losses. So ICICIand HDFC are the strong one to absorb their loses. Gross N PA: Gross NPAs are the sum total of all loan assets that are classified as NPAs as per RBIguidelines as on Balance Sheet date. Gross NPA reflects the quality of the loans made by  banks. It consists of all the non standard  assets like as substandard, doubtful, and loss assets. It can be calculated  with the help of following ratio : SBI maintained its GNPA to 3% which is very good sign of performances as SBI is thelargest lender in INDIA. HDFC ¶s GNPA is quite good as it is low with compared to ICICIand SBI but in 2008-09 GNPA rises. The reason may be economic crises. AXIS bank haslowest GNPA which shown its management ability. ICICI has the highest GNPA in bankingindustry and rising YOY (year on  year). N et N PA: Net NPAs are those type of NPAs in which the bank has deducted the provision regarding  NPAs. Net NPA shows the actual burden of banks. Since in India, bank balance sheetscontain a huge amount of NPAs and the process of recovery and write off of loans is verytime consuming, the provisions the banks have to make against the NPAs according to thecentral bank guidelines, are quite significant. That is why the difference between gross andnet NPA is quite high. It can be calculated by following : AXIS Bank has least Net NPA and ICICI has highest NNPA among group. HDFC shown itsmanagement quality as it maintained its NNPA YOY (year on year). SBI has to keep NNPA  below. IDBI has successful to control NNPA YOY. How to cite Project on Comparison of Public and Private Sector Banking, Essay examples

Entrepreneurship Innovation and Marketing Assessment †Free Samples

Question: Discuss about the Entrepreneurship Innovation and Marketing. Answer: The first company selected for assessment is Mastery Science: It is an education provider company for the children. They tend to provide information about everything which they want to know(Mastery Science 2017).Mastery Science collects evidence of every scientific innovation and makes it available to children so that can answer their queries about the subject. Company has procured $2 million till June 2017(Mastery Science 2017). Market opportunity of Mastery Science is enormous as there are innumerable students and children who are pursuing education in science stream(Mastery Science 2017). All the high schools and colleges have significant number of students who can become potential clients for Mastery Science. It has enormous opportunity for business as education is perpetual.Students will get maximum help from the portal of Mastery Science who will communicate with their peers to use this website. This will create another market opportunity for Mastery Science. Mastery Science has a target market of students all over the globe. Every student pursuing science stream in any part of the world comes in the ambit of target market of mastery science(Mastery Science 2017). Latest scientific knowledge is the requirement of every science student hence its market is huge.Research scholars and scientists working in research institutes tend to search factual information about new discoveries in the field of science. Mastery Science can target them through seminars and advertisements. There is always a requirement for a reliable source of scientific knowledge. Articles and information available on internet is not always authentic especially in the case of science(Mastery Science 2017). There are many theories whose validity is not confirmed. This is why students will subscribe the services of Mastery Science. In the field of science factual data and authentic information is everything. Mastery Science may keep chennels and services about the details of experiments and scientific discoveries. Subscription of services and products are charged by the students.Each product and service has a price and a period of expiration(Mastery Science 2017). Students who have subscribed the course, material, notes, lectures and video lectures pay via online transaction to gain full access of the information. This is how Mastery Science will make money. Second company selected for assessment is Tpaga: It is a mobile wallet company which provides payment solutions on smartphones in the Latin American Companies (Tpaga 2017). It has the advantage of the market as it is the first startup of payment solutions for unbanked citizens of Latin America.It has earned $2.25 million in three rounds (Tpaga 2017). Since, it is the whale in the mobile wallet market in Latin America it has enormous opportunity for business. Being the first startup company to provide mobile wallet services even to the unbanked consumers gives a lot of leverage as there is a huge number of people who are unbanked in Latin America (Tpaga 2017).Tpaga can create its own market opportunities by offering its users some promotional codes and offers in the beginning. This will attract many consumers to use this application. People in Latin America are comparatively poor than citizens of the West. They know less about the new technology of mobile wallets and mobile banking (Tpaga 2017). Targeting those citizens and educating them about this new system will create a new market all for Tpaga itself. Youth of Latin America is the biggest target market Tpaga can exploit. Young people are more attracted towards gadgets and new services. They are keen on learning and using new technology which can make their work easier and also looks cool on their part. Tpaga complies with all their psychological needs which can harness a great untapped market. As per the changing trend of the payment system across the world people will need to subscribe the services of Tpaga as it makes the payment system much easier and secured than other systems of payment (Tpaga 2017). This will make people use Tpaga most frequently to make payments. Tpaga is a mobile wallet company and gets commission for each transition made by its users. Any form of payment or transfer of money from one person to another holds a commission of certain amount which is received by Tpaga (Tpaga 2017). If the number of users increases then Tpaga will make huge money. Advertisement on its app is also a great source of revenue which Tpaga can explore and earn. Popular apps tend to have advertisements on their user interface for which they get paid by the endorsing company. Third company selected for assessment if Dahmakan: Dahmakan is a Kuala Lumpur based company which is known to redefine the food processing industry in Asia. It is contributed by leading Vice Chairman from Europe, US and Asia. They provide read-to-eat meals in South East Asia which helps people of all class to stay healthy. They have made $1.3 million in this year (Dahmakan.com 2017). Market is always available for Dahmakan as people will always require food to live. There is no end to its opportunities of business rather it will grow day by day as they become popular(Dahmakan.com 2017). It is the basic necessity that they cater to which is ever lasting.Expansion in the type of cuisines offered by Dahmakan to its customers can expand the market opportunity for the company. Many people of different ethnicity prefer to eat cuisines of their native place which is hard to find in foreign countries. Dahmakan can provide them with that to increase their market base. Dahmakan target people who are working and students who live alone in hostels and as paying guests. People who do not have time to cook or the means to cook is the targeted market for Dahmakan(Dahmakan.com 2017). As the working culture is developing in South East Asia people are more inclined toward pre-cooked food.Dahmakan can also put up stalls of food in office areas and park areas where people hang out during their office break times and for recreational purpose. This will highly improve their customer base and there is also scope of automatic advertisement. Working people living in big cities have to travel long distances to reach their places of work. They do not get time to cook for themselves. Eating good food is requirement of everyone which is provided by Dahmakan(Dahmakan.com 2017). They also make it available to their customers very easily. This is why their product is sold and is famous. Making money is very simple for Dahmakan as it is a give and take business. Dahmakan sells food to its customers who pay for the product(Dahmakan.com 2017). Vegetarian and non-vegetarian food items have different costs and hence it is paid accordingly as per the sale of the item.Dahmakan can start their online portal for food delivery in which online payment can be done which will increase their revenues a great deal. Fourth company selected for assessment is VIDA: VIDA is an e-commerce platform which deals in the direct-to-fabric system which effects the high level production of designer apparels from across the world. VIDA coverts the design of apparel to its real form in the fabric. It has made $120 thousand till July 2017(Vida.com 2017). Fashion Industry is one of the largest industries of the world. VIDA gives a new dimension to the fabric designing system through which any design can be converted into an apparel which can be adorned by models and people all around the world without much problem(Vida.com 2017).Various movie and theater industry have the requirement of custom made apparels for the specific plays and scenes in their movies. VIDA can easily market its products there which can be a potential buyer of its products on a long term basis. Many aspiring fashion designers and apparel designers are not able to showcase their art due to lack of resources. VIDA provides a medium for them to explore their art of fabric designing (Vida.com 2017). The target market for VIDA is all the big fashion designing and textile manufacturing companies. VIDA can target people working in corporate and business ventures who require a specific type of design and material for their clothes. Business meetings and corporate parties have dress code which needs to be complied by the attendees. VIDA can give them the proper wardrobe solution. Designers are creative people who create designs on computers and on paper. But to print the same design or to obtain the same design of fabric is a matter of grave concern for them (Vida.com 2017). This is why they will use the services of VIDA and buy its products as they can create any design provided to them on a fabric. VIDA is going to charge its customers for the printing of design provided by them. It may be in the form of a service or a product which can be charged accordingly (Vida.com 2017). Since it is a rare thing to ask for and is a difficult task VIDA can earn good amount of money if they do their job as per the satisfaction of the customers. Custom made designs and apparels have taken the online world by a storm. Custom made anything is more costly than the general product. VIDA can charge its customers for the type of customization they need in their product. Fifth company for assessment is Fat Lama: Fat Lama is a company which for rental market place for high-end items based on peer-to-peer mode. Items on Fat Lama are fully insured and authentic. It provides platform for rental of items without the use of shops. It is much cheaper and efficient solution. It has secured $1.59 million in 3 rounds till June 2017(Fatlama.com 2017). Market for Fat Lama is very open and has sound opportunities. There are a number of people who want to rent their items and there are also consumers who want such items on rental basis (Fatlama.com 2017). As the popularity of Fat Lama grows such a trend will be created and a new rental market will be generated. Being an online portal for renting goods it reaches to everyone who owns a smartphone or knows how to use internet. Fortunately today maximum people know how to do both. This helps in expanding the market opportunity for Fat Lama. Fat Lama targets people who used to have small factories and industries with heavy machineries (Fatlama.com 2017). But Fat Lamas market is not restricted to that. Any item which is used for generic purposes can be rented on the platform and hence it makes it a huge market to target on. Junkyard is also a place where products and goods in working condition are found and can be rented. Fat Lama can target the workers and owners of junkyards or places similar to that. At every place, consumers of different financial conditions live. The ones who cannot but everything they want to or need to use try to take on rental such as an apartment or a car(Fatlama.com 2017). Fat Lama provides them with this facility. It will become very famous in very less time. As it can be observed every middleman keeps his cut of the deal as commission (Fatlama.com 2017). The same way Fat Lama will keep a commission which may be added in the rent of the product the user will have to pay for using the services of Fat Lama and even that particular product. Being an online website or a mobile application gives Fat Lama, prospect to earn from advertisements is there. Local companies can endorse their ads on the user interface which are paid to the company. More users will fetch more ads to Fat Lama. Sixth company for assessment is ADVANO: ADVANO is a high end technology company which combines nanotechnology with chemical engineering to provide better solutions for renewable energy and bring revolution in the field. ADVANO is based in silicon valley employing best minds in the field, has got equity funding and has earned $1.05 million in 3 rounds from 7 investors (Advanotech.com 2017). Since the change of energy resources is reaching its peak the business opportunity is humungous for ADVANO (Advanotech.com 2017). Use of renewable energy resources are finding places in the hearts of every economically sound country and it is an inexhaustible product which ADVANO is creating to stay in the business. Environment protectors have made huge issues relating to the use of conventional sources of energy and carbon footprint. In this case ADVANO can make a market for itself in the countries or places where huge carbon emissions take place. Every country whose conventional energy resources is getting exhausted or near to exhaustion is a potential market for ADVANO (Advanotech.com 2017). The product being offered is the most basic one for continuance of life of people which is renewable energy. So there is a well-established market available for ADVANO to sell its products. Huge industrial areas and countries where heavy duty production takes place are the best places to target for ADVANO. These countries need to change their conventional mode of energy generation and can prove to be a giant market for ADVANO. Renewable energy is a product which needs no introduction. Every country or organization in the world is inclined to use renewable energy for environmental reasons as well as for the business purpose (Advanotech.com 2017). There is very less fossil fuel available as compared to the use and population. It serves as the best alternative. ADVANO creates solutions to harness and develop renewable energy by using nanotechnology and chemical engineering (Advanotech.com 2017). They can either sell the products that can create renewable energy or they can sell the technology to a country or a company who operates in this field of business and make huge profits out of it. Seventh and the last company for assessment is Py: Py is a lean-to-code mobile app and a startup company which is established recently. It offers courses of programming languages such as Python, Java Script, HTML/CSS and Swift. Since it has been established recently in August 2017 its financial gains and money earned is not disclosed yet(Downloadpy.com 2017). Being a startup company it has enormous market opportunities which the company can bank upon(Downloadpy.com 2017). Development of information technology and computer savvy systems the demand for programming languages has become a basic need and Py caters to that need quite well. College students who need help like tutorials to learn the programming languages where these things are not taught in details can provide be to a market opportunity for Py. Target Market of Py is the developers and programming associates who work in IT companies and write code for them(Downloadpy.com 2017). Evolution of software market demands learning of new languages from time to time.So the market is evergreen for Py to develop and grow its business. Py can organize seminars and events to educate students and enthusiasts to make them realize the importance of programming language. This in turn will inspire new people to enroll and subscribe to their courses. Online courses are in vogue. People tend to learn different courses online by paying them the subscription charges and viewing video lectures. It gives them the flexibility of time and place. They can start and end the lecture as per their convenience. This will make them subscribe to the services and products of Py (Downloadpy.com 2017). Py is going to charge its views and subscribers to enroll into the different courses of languages offered by them on their portal or website. They can provide them with notes and full access to the services of Py. The payment made by subscribers is the basic earnings of Py(Downloadpy.com 2017). References Advanotech.com 2017.Advano: Advancing Nanotechnology. [online] Advano: Advancing Nanotechnology. Available at: https://www.advanotech.com [Accessed 8 Sep. 2017]. Crunchbase.com 2017.crunchbase accelerates innovation by bringing together data on companies and the people behind them.. [online] Crunchbase.com. Available at: https://www.crunchbase.com [Accessed 8 Sep. 2017]. Dahmakan.com 2017.Healthy food delivered | Order now | dahmakan. [online] Dahmakan.com. Available at: https://dahmakan.com [Accessed 8 Sep. 2017]. Downloadpy.com 2017.Py: Learn on the Go. [online] Downloadpy.com. Available at: https://www.downloadpy.com [Accessed 8 Sep. 2017]. Fatlama.com 2017.Fat Lama | Rent Almost Anything. [online] Fatlama.com. Available at: https://fatlama.com [Accessed 8 Sep. 2017]. Mastery Science 2017.Blog - Mastery Science -. [online] Mastery Science. Available at: https://www.masteryscience.com [Accessed 8 Sep. 2017]. Tpaga 2017.Tpaga | crunchbase. [online] Crunchbase.com. Available at: https://www.crunchbase.com/organization/tpaga [Accessed 8 Sep. 2017]. Vida.com 2017.Vida Health Coach. [online] Vida.com. Available at: https://www.vida.com [Accessed 8 Sep. 2017].