Examine how soaps attract their target audience Essay

The explanation I am composing this paper is on the grounds that I will distinguish the distinction between two cleansers, one is Australian and the other is English. The Australian cleanser is called â€Å"Neighbours† and the English cleanser is â€Å"Coronation Street†. We are taking a gander at these two cleansers since we are perceiving how fruitful each cleanser is at pulling in its intended interest group. The principal cleanser I will expound on will be â€Å"Coronation Street† this cleanser is the English cleanser out of the two, so it is set in England at a town called Wetherfield, only outside of Manchester. In actuality, Wetherfield is a town down south. The arrangement of â€Å"Coronation Street† has an old rock road, with old patio lodging. There are many gathering places inside the cleanser which are Peoples houses, however in the particular scene I am discussing the house that it is set in are Janise’s house. The houses that it makes the road normally English are old Victorian houses which are Terrance houses. The other allotting places inside the cleanser are Rovers Inn, the cafi and Roy’s Rolls. On the scene I viewed the atmosphere was freezing and shady. The principle characters which show up on the cleanser â€Å"Coronation Street† are Janice and Les who are hitched however are getting a separation. Dev and Gina are another two major characters in the scene I am expounding on. They are getting hitched, in the scene we just observe them on there hen and stag night. Different characters which don’t have a very remarkable impact in the scene I am talking are Deidre, Ken, Curly, Terry and Maxine. There are 10 storyline going on in â€Å"Coronation street†, I will disclose to you some of them. Deidre had a single night rendezvous with Dev, yet now Dev is getting hitched to Gina, so Deidre is disturbed. An unexpected gathering is being sorted out of the cheerful couples getting hitched, which are Dev and Dina. Wavy and his accomplice had a child. Janice’s sweetheart Dennis passed on in a fender bender. To wrap things up Maxine is pregnant. The manner in which the storylines are set out in the scenes is that the jump to each storyline in turn so it would resemble a cycle e. g. 1, 2, 3, 4, 1, 2, 3, 4. I think the best characters in â€Å"Coronation Street† are Dev and Dina, in light of the fact that they truly seem as though they are enamored, as I wear not ordinarily watch this cleanser I could tell straight away that they were infatuated. Since I don’t have foundation data on the cleanser I can’t tell if Dev and Dina are together, in actuality, or not, yet on the off chance that they are not they are great on-screen characters. The best storyline in â€Å"Coronation Street† must be the â€Å"party† that the road was sorting out for the wedded couple to be, and what Deidre looks like all resentful and discouraged. The way that the maker makes the cleanser â€Å"Coronation Street† regularly English is the English inflection is brought into the cleanser, numerous bars in the road which England has take armada for instance we should have generally around 10 bars where I live. The manner in which the characters utilize the normally English expression â€Å"do you need some tea? † which this expression is regularly heard in the English language. Likewise prior in the exposition I referenced that there were coble boulevards and Terrance houses. The intended interest group the cleanser â€Å"Coronation Street† is focused on is for the most part more seasoned individuals and their family and moderately aged ladies. The subject tune causes you to feel extremely old. I said family because in light of the fact that â€Å"Coronation Street† is put on in prime time when all the family gets together. A moderately aged ladies can change over to there life through a cleanser like â€Å"Coronation Street† there is additionally another explanation a moderately aged ladies may watch â€Å"Coronation Street† this explanation would be that there are numerous female characters in the cleanser. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. One of the characters in â€Å"Coronation Street† is a sure race to this will urge different races to watch the cleanser. Another character in the cleanser has they same effect on the crowd and that is Roy on the grounds that he claims his own organization others who imagine that they can’t identify with â€Å"Coronation Street† they observe how is business is going. I know this in light of the fact that my Uncle Robert does likewise. The storyline with Janice and lose of her sweetheart is another eye catcher for the crowd the greatest number of individuals can identify with it as they would have lost there beau through death or just separation. The other storyline with pulls in the crowds consideration is Maxine and her that she is conveying even intense the infant isn’t her sweethearts she should confront reality one day, another instance of a similar story is in â€Å"Eastenders† where Lisa has had Phil’s infant. The area of the cleanser â€Å"Neighbours† is set in Australia. Likewise in â€Å"Coronation Street† the cleanser â€Å"Neighbours† additionally has many gathering focuses which are people’s houses yet in the scene I watched it was simply â€Å"Lou’s place†. The other allotting places were Good Hair Day Salon, the Dina, outside Karl’s stockroom and the school. The Climate not at all like â€Å"Coronation Street† was bright hot with a beautiful clear sky. A portion of the principle characters which show up in the cleanser, are Karl and Susan who are hitched and have two children called Stephanie and †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Lou and Louise are other two primary Characters in the cleanser and Lou is the Father of Louise. Sandy and John are hitched. Furthermore, there are numerous different characters who are Libby, Drew, Paul, Felicity, Joe, Todd, Toady, Maggie, Emily, Evan, Lyn, Harold, Leo, Matt, Dee, Tess, Michelle, Joel and Sandy. There are just 5 contrasted with â€Å"Coronation Street† in which there are 10. In â€Å"Neighbours† Lou is losing Louise his little girl since he lost the Hearing. Stephanie has a prospective employee meet-up, which she doesn’t get in light of the fact that her Mum and sister give her a makeover, where the Interviewer didn't care for as Stephanie would be working with men. Stephanie additionally runs into an old mate who she new through Woody, as woody and him had a similar room in medical clinic. Leo’s father recons that Leo is being tormented, so he makes a move. As Leo goes up against his father to state that he wasn’t tormented however didn’t give certain individuals their expositions that they paid for. Karl is accepting a conveyance in which he hasn’t even an inkling what the convey contains. I think the best character in â€Å"Neighbours† is Lou as he has such a critical step to play, losing his Louise is a very grievous encounter, which additionally brings Lou thinking the amount one Human being intends to him. I likewise recon the best storyline must be Lou losing Louise, I makes you need to cry, it additionally brings the crowds feelings into the image. The cleanser â€Å"Neighbours† is regularly Australian in view of the atmosphere which I referenced before on in the exposition. The enrollment number on the vehicle is Australian. Toward the start of the cleanser while the topic tune is playing the characters are all around a pool and are having a BBQ wherein the Australians are renowned for. The Target crowd for â€Å"Neighbours† is totally unique in relation to the crowd that â€Å"Coronation Street† is focusing on. The maker of â€Å"Neighbours† is focusing on an a lot more youthful crowd than â€Å"Coronation Street†. The storyline where Lou loses Louise draws in too various times of the crowd, the more youthful and the more established, in light of the fact that a few children could allude to Louise’s circumstance, and a few grown-ups can allude to Lou’s circumstance on letting Louise go. Mid twenties are focused on just as Stephanie goes for a prospective employee meeting in which she doesn’t get. Leo carries more youthful individuals to the crowd as he is in secondary school, and Karl brings businessmen to the crowd as he possesses his own business in the cleanser equivalent to Roy in â€Å"Coronation Street†. My decision on the cleansers â€Å"Coronation Street† and â€Å"Neighbours† is that â€Å"Neighbours† pulled in the crowd it was focusing on much better that â€Å"Coronation Street† as in â€Å"Neighbours† they brought the account of Lou and Louise. In â€Å"Coronation Street† there was a lot to identify with in my age gathering. As I have referenced before Lou’s story unites everyone’s feelings. As I don't typically watch these cleansers I don’t check whether â€Å"Coronation Street† identifies with me or not.

The National Assemby and Restructuring The French Government :: essays research papers

ON WHAT PINCIPLES DID THE NATIONAL ASSEMBLY SEEK TO RESTRUCTURE FRENCH GOVERNMENT AND SOCIETY IN THE YEARS 1789-91? At the point when the National Assembly settled a prevailing situation in the running of the French state in 1789, they expected to move rapidly to change the old state around them into one that related to the political perspectives held inside the new Assembly individuals. A ‘principle’ or cause from which all rebuilding could take structure from, and that would legitimize the activities of the Assembly to the individuals as they started recreating the state into a ‘ uniform, decentralized, delegate and philanthropic system’ was required. The inquiry being posed is for us to characterize this guideline utilized by the Assembly to rebuild French society and government, an inquiry that must be replied by examining the presentations of the Assembly to find where they proclaim the primary standards of their new framework straightforwardly in an offer to legitimize further activities. At the point when the recently accumulated individuals from the National Assembly met on the regal tennis court on the twentieth June 1789, they proclaimed a pledge that should have been recognized as the ‘Tennis court oath.’ This promise was to never rest until they ‘provided France with a constitution,’ a basses that the Assembly could rebuild France around. Be that as it may, constitutions were new to this time in history and the protected journalists required chance to find the specialty of planning such a record considering the absence of information they had in the field. They may have been supported by data from the ongoing occasions in America and the advantages from considering their new American Constitution, however the Assembly despite everything required opportunity to guarantee achievement, and this implied they required a brief base of standards to work from. The beginning stage throughout the entire existence of the Assembly’s activities to change France can be found in the fourth August ‘ August Decrees.’ The Assembly had drawn up this arrangement of standards after the weight made by the Great Fear had constrained move to be made for the security of French society. The get together had needed to quiet down the worker ascending in the nation and at the time this implied nullifying the medieval framework, a framework that stayed nearby the shoulders of the lower class mass. This activity would give the nation an opportunity from individual bondage alongside the expulsion of the levy that limited the working class from everyday.

Free Essays on Life Insurance

Protection might be portrayed as a support against life⠡â ¦s vulnerabilities. With that in mind, it can never be paid attention to as well. Consistently, the individual safeguarding himself wagers that he won't be experiencing one more year and the safety net provider is wagering that he will. In the event that the individual lives, and loses the wager, he pays the safety net provider a little premium; on the off chance that he kicks the bucket, the back up plan pays the singular amount  ¡Ã¢ ¥jackpot⠡â ¦ to the person⠡â ¦s chosen one. While the individual taking up the strategy has just a single life to wager on, his safety net provider is playing a similar game with a great many others like him. Since the insurer⠡â ¦s hazard is spread, he can offer immense chances. Besides, the safety net provider contributes the top notch he gets every year, and has workers (called Actuaries or Actuarial Officers) who figure the chances on every strategy dependent on death rates, the mortality experience of the back up plan, and the arrival on speculation which the guarantor is probably going to get. These basically, structure the system of deciding the premia paid by arrangement holders, and the profits anticipated from the approaches. It is the Life Advisors of each organization who are liable for making the connection between the back up plan and the arrangement holder. He meets with the planned arrangement holder, and related to him, figures out which strategy would best suit his needs. In reality, it is through the Life Advisors that each Life Insurance Company figures out how to keep up an individual relationship with its customers. Life coverage in India The Insurance Sector in India is one in which the passage of private players has as of late been allowed. Already, this was a part which was completely controlled by the Government, and its Public Sector Companies. A glance at the above graph portraying the market - portion of the different players will reveal to us that most of the market is still in the reins of the Life Insurance Corporation of India. This isn't astonishing given the all-encompassing imposing business model period... Free Essays on Life Insurance Free Essays on Life Insurance Protection might be portrayed as a fence against life⠡â ¦s vulnerabilities. With that in mind, it can never be paid attention to as well. Consistently, the individual safeguarding himself wagers that he won't be experiencing one more year and the safety net provider is wagering that he will. On the off chance that the individual lives, and loses the wager, he pays the safety net provider a little premium; in the event that he bites the dust, the back up plan pays the single amount  ¡Ã¢ ¥jackpot⠡â ¦ to the person⠡â ¦s candidate. While the individual taking up the strategy has just a single life to wager on, his guarantor is playing a similar game with a large number of others like him. Since the insurer⠡â ¦s hazard is spread, he can offer gigantic chances. In addition, the safety net provider contributes the top notch he gets every year, and has representatives (called Actuaries or Actuarial Officers) who ascertain the chances on every strategy dependent on death rates, the mortality experience of the back up plan, and the arrival on venture which the guarantor is probably going to get. These fundamentally, structure the system of deciding the premia paid by arrangement holders, and the profits anticipated from the strategies. It is the Life Advisors of each organization who are answerable for making the connection between the safety net provider and the strategy holder. He meets with the planned strategy holder, and related to him, figures out which arrangement would best suit his needs. To be sure, it is through the Life Advisors that each Life Insurance Company figures out how to keep up an individual relationship with its customers. Life coverage in India The Insurance Sector in India is one in which the passage of private players has as of late been allowed. Already, this was a segment which was completely directed by the Government, and its Public Sector Companies. A gander at the above diagram delineating the market - portion of the different players will reveal to us that most of the market is still in the reins of the Life Insurance Corporation of India. This isn't astounding given the all-inclusive syndication period...

Community Meeting Essay Example | Topics and Well Written Essays - 750 words - 9

Network Meeting - Essay Example The adolescent gathering holds its gatherings each Sunday evening, as per Bob. To begin the gathering, they draw in themselves in exercises, for example, banner football, b-ball, soccer, and Frisbee. Such recess exercises empower the new gathering individuals to blend effectively with the ‘old guard.’ The individuals from the gathering are drawn from different neighborhoods and they extend in age from 10-16 years. Such neighborhoods incorporate Germantown, Manayunk, Lafayette Hill, and Mt. Breezy. After they have known one another, the gathering individuals assemble in the congregation storm cellar for declarations. These were finished by Bob. He likewise acquainted new individuals with the gathering, and furthermore drove everybody in a gathering tune which is gone before by bunch love and supplication. The individuals were then isolated into two gatherings by the associate youth bunch pioneer. They were isolated into center school and secondary school. They had bites, which were given by the ward, after which they set out for a conversation about contemporary world occasions and issues. The secondary school understudies examined the Bombings in Boston. Sway declared that plans were in progress for the congregation to make a late spring trip. The service youth bunch had been opened for an excursion to Central, PA, where a Christian stone celebration would have been held. The celebration was named ‘Creation.’ It was disclosed to the gatherings, by Bob, that the celebration would resemble Woodstock, in spite of the fact that with day by day speakers and all the tunes being Christian exciting music. The congregation, as it was declared, would support two vehicle washing occasions, one to be held in May and the other in June, in an offer to raise satisfactory accounts to subsidize the excursions to diminish the sum that every one of the individuals should contribute.

Free Essays on Legal Brief- Korematsu

1. Korematsu v. US, (1944); pg. 638, informed 1/23/96 2. Realities: Shortly after the bombarding of Pearl Harbor, the president gave a request permitting the military leaders to bar people of Japanese family line from territories distinguished as military regions. 3. Procedural Posture: Korematsu was sentenced for abusing the exclusionary laws. 4. Issue: Whether grouping and rejection dependent on Japanese family line during the WWII was an infringement of equivalent assurance. 5. Holding: No. 6. Dominant part Reasoning: All legitimate limitations that shorten the social liberties of a solitary racial gathering are quickly suspect, setting off the â€Å"most inflexible scrutiny.† There must be a â€Å"pressing open necessity† for the arrangement. Here, it was difficult to isolate out the dedicated from the traitorous people, so rejection of the entire class was advocated because of the open perils included. The Congress has enabled to the military to settle on these military based choices. They are not founded on prejudice. 7. Dispute Reasoning: [Murphy] Contended the racial arrangement was not even objectively identified with the finish of shielding from attack since it was over comprehensive. It is an absurd suspicion that all people of Japanese family line have the ability to take part in undercover work. The Army had the more viable other option, which would accord with fair treatment, to hold singular unwaveringness hearings to figure out who was a hazard. [Jackson] felt that the choice was much increasingly cumbersome. A military leader may break the constitution incidentally once in a while, yet for the Supreme Court to justify it is to make prejudice some portion of the Constitutional precept, fit to be utilized later on by any individual who can show military expediency.... Free Essays on Legal Brief-Korematsu Free Essays on Legal Brief-Korematsu 1. Korematsu v. US, (1944); pg. 638, informed 1/23/96 2. Realities: Shortly after the bombarding of Pearl Harbor, the president gave a request permitting the military authorities to avoid people of Japanese family line from regions recognized as military zones. 3. Procedural Posture: Korematsu was sentenced for damaging the exclusionary laws. 4. Issue: Whether grouping and avoidance dependent on Japanese family line during the WWII was an infringement of equivalent security. 5. Holding: No. 6. Dominant part Reasoning: All legitimate limitations that abridge the social liberties of a solitary racial gathering are quickly suspect, setting off the â€Å"most inflexible scrutiny.† There must be a â€Å"pressing open necessity† for the characterization. Here, it was difficult to isolate out the unwavering from the backstabbing people, so rejection of the entire class was supported because of the open risks included. The Congress has enabled to the military to settle on these military based choices. They are not founded on bigotry. 7. Contradiction Reasoning: [Murphy] Contended the racial grouping was not even normally identified with the finish of shielding from attack since it was over comprehensive. It is an irrational supposition that all people of Japanese family line have the ability to take part in secret activities. The Army had the more powerful other option, which would accord with fair treatment, to hold singular reliability hearings to figure out who was a hazard. [Jackson] felt that the choice was considerably increasingly difficult. A military officer may penetrate the constitution briefly once in a while, however for the Supreme Court to defend it is to make bigotry part of the Constitutional principle, fit to be utilized later on by any individual who can show military expediency....

Sales 101 Sell Stories, Not Products

Sales 101 Sell Stories, Not Products The concept seemed simple enough. You have a product and you know its features. All you have to do is go out and sell the product to make money. That is sales or, at least, how most people perceive sales. Why, then, do we see some experienced sales people embark on seemingly complicated processes and launch into very long pitches in order to sell their products and ideas?That is because they look beneath the surface. © Shutterstock.com | zaozaa19This article will share light on 1) the lowdown on sales, 2) the sale of stories over products, 3) the iPads, and 4) the DeBeers stories.THE LOWDOWN ON SALESSales encompass the sets of activities that involve the exchange of products, commodities, and services for money of equitable or equivalent value. Some look at it as a process or a business in itself, while others treat it more as a profession or line of work.So, really, it’s not as simple as we all thought.In sales, there are two primary parties involved: the seller and the buyer or purchaser. The seller is the original owner of the product or service, and he offers it to the purchaser for a price. Once the purchaser agrees to the price and pays the amount agreed upon, the sale is executed and completed, and the ownership of the product or item is passed on to the purchaser. In many cases, there is a third party involved, the salesperson, who is tasked to sell the commodity or service on behalf o f the original owner.Of course, if we look into more complex sales processes and relationships, there are more parties or people involved. But the main concept remains the same: there is a seller and a buyer, and a product or service that will be sold for a specific price.There have been many misconceptions regarding sales, and let us try to clear them up a bit.Sales is not marketing, and vice versa.These two are often interchanged, with many thinking they are one and the same. While it is true that both have the same goal â€" revenue generation â€" they go about it differently.Marketing is broader than sales, since it also covers areas such as establishing relationships with customers, suppliers, distributors and competitors; identifying opportunities in the market; and formulation of strategies to establish and maintain relationships, to name a few. It often involves activities like conducting market researches, advertising, public relations, customer service, and sales. Yes, it i s safe to say that Sales can be thought of as a part of Marketing. In fact, selling is the ultimate result of marketing, seeing as all the activities performed in marketing a product is geared towards closing its sale.Great products do not really sell themselves.There is this age-old adage that goes “great products sell themselves”, meaning that if you have an excellent product, you no longer have to lift a finger to sell it. This saying pretty much implies that salespersons are redundant and there is no use for them.The best sales teams refuse to let this phrase make them lazy, however. Perhaps these “great products” will bring in sales, but they want huge sales and to do that, they will still have to get to work and flex their selling muscles, so to speak.THE SALE OF STORIES OVER PRODUCTSSalespersons are storytellersStorytellers have a way of reeling in listeners. They start with a few words that will surely catch the attention of even someone just passing by. Those words have more than enough hook to make them stop and listen for a while. Then the storytellers start to reel them in by adding more details to the story. If it’s good enough, the audience will stick around to hear the rest of the story, and there will be more listeners than before.It is the same with Sales. You introduce the product or service, tell more about it in order to attract more buyers or clients, and continue polishing or improving it until you have a loyal customer base. They will keep coming back to your product because they liked it, and they want more of it.The Product is the star of the storyIn any story, there is a main character or protagonist. In this context, the star of the sales story is the product. What you will be selling is the story as a whole, not just the main character.Imagine yourself sitting through a marathon of product commercials on TV. If all you see is a video of a detergent with voiceover and text speaking about its content and capabilities, chance s are you will not even be able to remember its name ten minutes later. But if, in the video, you see a housewife having problems taking out stains on clothes, then presented with the detergent and successfully getting rid of the stains using the product, it will definitely make you take note of it.Or, while browsing through YouTube, you spot a video of a new mobile app on making restaurant reservations. The features are enumerated systematically, and you see that it is quite similar to other existing apps. You may even close the video and move on to something else before it is finished. However, if the video focuses on how the app will make it easier for someone to make reservations â€" explaining why it is better than the other apps â€" it is likely that your next action will be to head to the website of the developer and download the app.So you have a product and you absolutely love it. In fact, you think it is the best product to come out in recent years, and you honestly cannot imagine how the world will function without knowing about it or using it. Your objectivity has been clouded; there is absolutely no way that your product will not sell. …Right?But you’re missing something here: you are not the one you are selling the product to so, in essence, your opinion does not really matter. Your customers’ do; they are the ones to decide whether your product is good or great, and they will also decide whether they should pay for it or not. It is, after all, in their nature to be self-centered. Which brings us to the next point: your customers.Know your listeners: the customersThere is one thing that salespeople and sales teams, especially those that are just starting out, do not realize: customers or clients do not care about the products; they care how the products can help them solve their problems and make their lives easier.You see many salespeople extolling the finer details and specific features of a product they are selling. They spend hours and hours talking about what the product is made of or how a component is made. They even go to great lengths to demonstrate what it can do. The result is impressive enough, but will this translate to Sales?Perhaps. But it won’t be the numbers they were expecting.When faced with the offer of a new product, especially one that they have not seen before, customers will hardly care about the product. They are more curious on what the product can do for them. Sure, they will be informed of the features of the product. They are shown its functionalities, and they are duly impressed by how well-made it is.Before they decide to bring out their wallets and pay for it, however, they will go, “how can that product help me in my life?”That is the make or break question that will impact greatly on Sales.So what if you are offering a product with a revolutionary feature? The mother who is having headaches about lowering household expenses will not be impressed by it. Even the father who is mor e focused on how to have a more efficient way to finish a task will not pay any attention to it, for the simple reason that the product does not offer the solution he is looking for. In short, it is not the story he wants to hear.In order to be able to weave a plausible and convincing story, you must first know your customer.Make sure that you do your homework on your customers or clients before you approach them with an offer. What should you look into?Studies on the market, especially the one that you are targeting, entail looking into their distinguishing characteristics and experiences. What are your customers’ needs? What are their preferences? Are they having personal problems that may be addressed by the product or service you are going to offer?If the answer to the latter question is yes, then it is likened to finding a plot point that you can exploit when weaving your story. Look into how their problems or pains can be solved by the product, and make that the climax and r esolution of your story.As a storyteller, you now have the basic elements of the story. It’s just a matter of putting it all together in a coherent “narrative”.Telling your storyThe beauty of selling stories instead of products is its flexibility. You cannot change or tweak the products to suit your customers, but you can definitely customize your story so that it speaks to your customers, no matter how different they are.Say, for example, that you are selling exercise equipment. Your sales team can devise an advertising campaign focusing on the group that makes use of the equipment for physical fitness and muscle-building purposes. Similarly, the team will also come up with another advertisement that speaks to the medical community, specifically those that make use of the same equipment for physical therapy and rehabilitation of injured individuals.In that example, there is only one product â€" the exercise equipment. Instead of just talking about the features of the equipmen t, the sales team came up with scenarios where the equipment will provide a solution for the customers. They recognize the difference in the perspectives of the two groups, and carefully incorporated that in the advertising campaign that they drew up.Now we come to another issue: how to deliver the story to the right listeners or customers.Sales people in this day and age should consider themselves lucky. After all, there are now a lot of avenues available to them to deliver their stories. There are so many ways to deliver your story and introduce your products to the buying market.Companies still make use of traditional forms of advertising to deliver their story. Advertising through print and media is still being practiced. Online advertising is definitely seen to be just as powerful â€" probably even more so â€" as it is able to reach a bigger market.You have seen many companies do them before: their tweets tell a story that hooks millions of Twitter users to follow and see how t he story goes. Email campaigns are launched, and even YouTube videos are used to a great extent.Take note of other storytellersWhen relaying your story, make sure that you make every effort to distinguish yourself from the competition. There are other businesses that will offer a product or service that is similar to yours. Your objective is to make sure yours stand out above all the rest, and the way to do that is to tell a better story.There is nothing wrong with checking out the competition and how they market their product. You can probably learn a thing or two from them â€" what works, what doesn’t â€" when you are trying to sell your products.This is where you, the storyteller, can present your “plot twist”, or your unique selling proposition. This clearly defines what makes your product unique from the sea of similar products that offer pretty much the same benefits. What will make the customer choose your product over the others?Most sales pitches revolve around the un ique selling proposition. It is not enough to just present the unique feature as is; you have to expound on it in such a way that it makes an impact. Much like how an unexpected twist in a story will make a listener stand at attention and be amazed.THE iPAD’s STORYThe technology for tablets has already been in existence long before Apple introduced its iPad. In fact, several companies have already released their “mini-laptop” versions, to varying degrees of lukewarm reception and success. Their story? It is a convenient way to create content, combining functionality and portability in one device. Meaning, anyone who owns a tablet can write documents and other similar content even when they are on the go.Apple came out with iPad, and they backed it up with a story which is similar to that of the previous tablet, but with a distinct modification.Apple’s story is that the iPad also enables content creation even when you’re on the move. But there is a twist to their story and it is the unique selling proposition of Apple for this product: it is also for content consumption. Users may also download apps, music, media and other content directly on the tablet and store them for future consumption.Clearly, this story resonated with more people, and it has further cemented Apple’s status as a pioneer in tablets and similar devices. At present, it has already produced several versions of the iPad, adding upgrades along the way, with each upgrade adding a layer to the story that they relay to the market.In this example, it is clear that the customers did not focus on the product itself or even the technology. The customers are already familiar with the tablet, and they are also aware of the capabilities of a tablet, thanks to that technology. What convinced them to buy, however, was how the story was told. It was a time when people are looking for better and more convenient alternative to consuming content, aside from just using their laptops or desktops. And then Apple introduced this solution and the rest, as they say, is history.Please have a look at Steve Jobs introduction of the iPad and listen to how he frames the story that got the iPad started. THE DEBEERS’ STORYThere are a lot of stories around, but there is no denying that some of the more enduring ones are those that talk of love and devotion.DeBeers is one of the most recognizable names in the diamond industry, engaged in diamond exploration and mining to diamond trading and retail. At first, the diamond was nothing more than a “rock that shines”.And then it happened in 1916 when it came up with what has been declared as the best advertising slogan of the 20th century: “A Diamond is forever”.In this marketing strategy, DeBeers weaved a story that portrayed its diamonds as a symbol of love and commitment. Soon enough, women the world over would expect nothing less than a DeBeers diamond ring from their partners.Diamonds are being sold by other companies, but it was DeBeers that created that plot twist that convinced the market to buy diamonds, even at a huge premium.The two examples discussed above clearly demonstrate that Sales is not really about the product or service that you are selling, but the story that you are telling about that product.

Enabling Environment Of Banking Essay Online For Free - Free Essay Example

The purpose of this research was to assess the banking sector in Rwanda and its enabling environment to attract other banks within East African community. The research was carried out in Kenya Commercial Bank and Equity bank with the following research objectives; examining the nature of Rwandan banking industry, identifying the environmental factors in Rwanda that are conducive for banking sector and assessing the strategies that Rwanda banking industry has used to attract other banks within East African community. The researcher reviewed literature related to previous studies carried out in areas related to the topic giving emphasis to the nature of banking industry in Rwanda, environmental factors conducive for environment, strategies used to attract foreign banks and the banking sector in Rwanda. The researcher used descriptive and analytical research while the study population was 126 employees and customers of the selected banks. The sample size of the research was 95 employees from the selected banks. The data collection tools were questionnaires and interview guide while analysis and interpretation of data was done using tables and figures. Data collected was analysed based on the frequencies and percentages of respondents views. The research found out that the banking sector in Rwanda is very good (60%), and 32% described it as good. Meaning that Rwandan banking sector is good enough to attract other commercial banks within East African community, the factors necessary for the attraction of foreign commercial banks within East African Community are security (20%), stable currency (16%), and nature of the banking industry (29%), a wide market (9%) and conducive environment, there is a relationship between banking environment and attraction of commercial banks in Rwa nda (96%) meaning that attraction of commercial banks and banking environment are related. The research concluded that the nature of Rwanda the nature of the banking industry in Rwanda is good enough to attract other commercial banks within East African community and has favoured the foreign commercial banks that opened up in Rwanda from east African region and the environmental factors in Rwanda that are conducive for banking sector in Rwanda included security, stable currency and nature of the banking industry, a wide market and conducive environment. The research recommended that the government of the republic of Rwanda should continue ensuring that the banking environment is conducive by continued supervision and monitoring of the sectors, controlled inflation and stabilising the currency. TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS ACRONYMS ATM : Automated Teller Machine CAMELS: Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity CAR: Capital Adequacy Ratio EAC: East African Community EDPRS: Economic Development and Poverty Reduction Strategy FDI: Foreign Direct Investment FSDP: Financial Sector Development Program GDP: Gross Domestic Product IMF: International Monetary Fund KCB: Kenya Commercial Bank MBA: Master of Business Administration NBR: National Bank of Rwanda RDB: Rwanda Development Board Rwf: Rwandese Franc USA: United States of America DEFINITIONS OF THE OPERATIONAL TERMS Bank A bank is a financial institution that accepts deposits from and extends credit facilities to customers. Banking environment Banking environment refers to the environment in which banks operate in relation to financial policies, security and government laws. Foreign banks Foreign banks refers to banks from outside countries Attraction of foreign banks Attraction of foreign banks refers to the strategies and procedures directed towards making foreign banks coming in the country to join the banking sectors. CHAPTER ONE 1.0 INTRODUCTION In this chapter the researcher presents the introduction to banking sector and the enabling environment to attract other banks. The researcher also presents the background to the study, problem statement and the objectives of the study including general and specific. The chapter further presents the research questions, scope of the study, limitations, significance and the conceptual framework. Environmental turbulence in the modern banking business has forced the banks to adopt strategic reactions for survival and continuity. Banks predominantly react by diversifying their loan portfolio or by stepping up their screening and monitoring. During a financial crisis arranging banks retain larger portions of loans and form more concentrated syndicates, reflecting an increased need to screen and monitor borrowers. During a crisis, agency problems are attenuated in syndicates that lend to repeat borrowers and that are composed by experienced arrangers (Taylor, 2008). A liberalized a nd attractive banking industry especially in developed countries coupled with an increasingly complex and dynamic business environment has created hyper-competition not only in the banking sector but in different industries (Robinson, 1991). With increased labor migration, governments, civil society, and the private sector are now faced with the prospect of attracting more worker remittances, migrant association donations, migrant capital investment, as well as trade opportunities. Governments and businesses need to ask themselves what they can do to help lower the costs of remittances and attract more money. An enabling environment is one that facilitates with ease economic interaction among players. Five factors that enable a particular economic environment are: The presence of a significant number of economic players, communication and networking efforts, readily available information about transactions, policy, business initiatives, and ventures aimed at key economic sectors and resource availability to enhance initiatives and motivate players (Arteaga Jeffus, 2007). Governments and businesses can promote initiatives that not only address cost reduction in the transfer of remittances, but also enable other elements of an economic environment that is attractive for migrant transfers of various kinds (Watson and Tony, 1998). Attracting foreign investments are one of the driving forces of the process of globalization and are a defining element of the modern-day world economy. Foreign commercial banks promote the restructuring of industry at the regional and global levels and thus ensure the integration of a national economy into the world economy more effectively than trade (Williamson, 1996). 1.1 Background to the Study Industry competition involves business firms which compete for the same customers. This means therefore that if new markets are not created the number of customers would decline with the declining profitability of the firms in the same industry. Industry environment factors directly influence a firms prospects and they include; entry barriers, competitor rivalry, availability of substitutes and the bargaining power of buyers and supplier, among others. For companies in competition against one another, the external environment constitutes the industry within which the firm operates (Taylor, 2008). Competitive strategies involve the changes in a firms strategic behaviours to assure success in transforming the future environment. They therefore, constitute a set of decisions and actions that result in the formulation and implementation plans designed to achieve a firms objectives. It is a reaction to what is happening in the environment. Equally they involve the changes in a firms strategic behaviours to assure success in transforming the future environment. Ideally, the company gains competitors customers by taking over part of the competitors market share attracting non users of the product, at the same time encouraging current customers to consume more of the product and this forms the basis for market penetration strategy (Arteaga Jeffus, 2007). Rwanda has steadily reformed its commercial laws and institutions since 2001 with support from the World Bank. Rwanda made the biggest-ever improvement in the Doing Business reform category by jumping 76 places in one year, ranking 67 out of 183 countries in the 2010 report. The financial sector is also healthier, and together this progress reflects:   Reforms have been adopted   in 7 of the 10 doing business topics, major laws were prepared and adopted, including a company law, a secured transactions law, an insolvency law, a labor law, a law establishing the commercial courts, and another estab lishing the commercial registration agency. A Doing Business unit has been set up within the Rwanda Development Board (RDB) and is effectively leading the preparation and implementation of the investment climate reform agenda through enhanced public-private dialogue. The one-stop center in the RDB is also more effective. As a result, it is now easier, faster and less expensive to do business in Rwanda; Time to start a business was cut from 14 days to three days and the number of procedures was cut to two from eight. The cost of starting a business has dropped from 109 percent to 10 percent of income per capita between 2008 and 2009, time to register a property was reduced to 60 days   from 371 days and the cost to register property dropped from 9.6 percent of property value to 0.5 percent between 2007 and 2009, time to import was reduced from 42 to 35 days, and time to export was reduced from 42 to 38 days between 2008 and 2009, fiscal administrative procedures for busines ses are being streamlined and the Value Added Tax law amended, resulting in the reduction in the number of tax payments from 34 to 26 and reduction in time to prepare, file tax returns and pay taxes from 160 hours to 148 hours between 2009 and 2010 (NBR, 2011). All banks in Rwanda earned substantial profits in the first quarter of 2011, registering the strongest recovery from a dire 2009, the year that was characterized by high interest expenses and billions of bad debts, followed by a net loss of Rwf 300 million last year. However, things turned around in 2012 with a robust rebound in the financial industry, awarding banks with high profits in contrast to the pain they endured during the financial meltdown. In fact banks should maintain their optimism because Central Bank increases credit designated for the private sector by 20 percent(Independent newspaper, 2nd June 2011). The good performance in the industry is a result of a prudent fiscal policy for the last five years and increasing lending to stimulate economic growth. The current growth has not been hampered by the Central Banks tight rules that govern the financial game in Rwanda. Banks work in an austerely monitored environment, but there have been a series of monetary easing measures of late. For example, the Central Bank in 2010 massively slashed its key repo rate the rate at which it lends to commercial banks to a record low of six per cent from nine per cent in 2009. This development came on the heels of a stimulus package of Rwf20.21 billion in the banking system in 2010 in addition to Rwf14.51 billion that was spent a year earlier in form of short and long term deposit liquidity facilities to banks (NBR, 2011) Commercial banks, especially the East African Community banks including Equity and KCB banks from Kenya are fighting for more business case in Rwanda. The competition is more on savings account and credit accounts as these are seen as the main cash cows in the banking industry. Th e success in the Rwandan business environment is attributed to the conducive banking environment in the banking industry (National Bank of Rwanda [NBR], 2001). 1.2 Statement of the Problem Competition, both national and international, is increasing in virtually every industry. The key features and the implications of this trend are outlined with specific reference to the banking and financial services industry. The competitive strategy for the banking industry has largely been the identification of potential market niches and segments which could be developed. Due to globalization and liberalization in the world, economies have seen more firms entering into the global markets in general and in the banking industry particularly in upcoming markets. Rwanda government in its process of economic development through conducive climate for investment has attracted many businesses in commercial banks to invest in the country. A liberalized banking sector in Rwanda has witnessed increased competition in the banking industry in Rwanda. More banks especially from foreign countries such as Equity, Kenya Commercial Bank from Kenya, Fina Bank, Access Bank and Eco Bank from Nige ria have invaded Rwanda`s banking sector. In addition to this there are more financial institutions still entering into Rwanda. With the increased competition commercial banks in Rwanda are experiencing a strain on their market share and hence their profitability (NBR, 2009). This means that the banking sector of Rwanda has managed to attract many foreign banks especially from East African community. However the extent to which it has attracted the foreign commercial banks from East African needs to be ascertained. It is therefore, against the above background that the researcher carried out this research and assesses the banking sector in Rwanda and its enabling environment to attract other commercial banks from East Africa. 1.3 Objectives of the study 1.3.1 Main objective The main objective of this research was to assess the banking sector of Rwanda and its enabling environment to attract other commercial banks within East African Community. 1.3.2 Specific objectives of the study The specific objectives of this research were the following;- To examine the nature of Rwandan banking sector ant its environment To identify the environmental factors in Rwanda that are conducive for banking sector. To assess the strategies that Rwanda banking industry has used to attract other banks within East African community. 1.4 Research questions The research question included the following:- What is the nature of Rwanda banking sector and its environment? What are the environmental factors in Rwanda that are conducive for banking sector in Rwanda? What are the strategies that Rwanda banking sector has used to attract other commercial banks from East African community? 1.5 Limitations of the research To every research, process or activity, there are always challenges along the way that tend to disrupt the process. In as far as this research is concerned, the researcher faced the following challenges but was much prepared to handle them and produced a quality research report. Firstly the researcher faced a situation where some of the respondents took long to believe in the purpose of the research. This made them refuse or hastate to fill the questionnaire or accept the interviews. However the researcher did whatever it needed to convince them beyond doubt that the research was purely academic and they provided the required data. In most cases senior management in banks were so busy with work and therefore had limited time to fill questionnaires. However, considering and knowing their situation, the researcher made all the possible appointments with them until they got time for interviews other than questionnaires which took long. The researcher also faced a situation wh ere it was difficult to assess the required literature for the research. However, the researcher was more prepared to do visit all the possible places like libraries, book centers and internet in order to assess a wide range of data. 1.6 Scope of the research 1.6.1 Content scope In carrying out this research, the researcher ensured that the original purpose of the research is not diverted and therefore focused on the Rwandan banking sector and its enabling environment to attract other banks within East African community. 1.6.2 Geographical scope The research was carried out in Equity bank and Kenya Commercial Bank as some of the two foreign banks from East African community. The researcher concentrated on the main branches of the selected banks located in the centre of Kigali City. 1.6.3 Time scope The element of time is very important in the research process because it makes the research more clear and specific. This researcher therefore considered the period from 2009 to 2012. 1.7 Significance of the research The research into Rwandan banking sector and its enabling environment to attract other commercial banks within East African Community will be significant to various sections of people and institutions in various ways among which the following will be included; Submission of the research report is a requirement of Mount Kenya University. Therefore upon its submission the researcher will be allowed to graduate with a Masters Degree in Business Administration Accounting and Finance option. The researcher will also be able to widen understanding in the field of banking and the environmental factors necessary to attract foreign banks. Future researchers in the field of banking will use the knowledge of this research when carrying out research in the related areas. They will be able to widen their understating and make themselves familiar with the banking sector. Equity and KCB Banks will use this research to identify the necessary environmental factors for attracting foreign ba nks and be able see which one they have exploited so far. They will also be able to know far they can fully exhaust the opportunities in Rwanda banking sector. Other foreign banks in Rwanda will also use the knowledge from this research to fully understand the Rwandan banking sector and how they can best exploit it in order to outwit their competitors. The government of Rwanda will use this research to know how far foreign banks understand and appreciate the opportunities in the Rwandan banking sector. This will help the government in providing areas where to base in making future policies related to the industry. Last but not least future investors in banking industry will benefit from this research by knowing the opportunities in Rwanda banking environment that can be exploited to their best advantage. CHAPTER TWO 2.0 LITERAURE REVIEW 2.1 Introduction In this chapter, the researcher reviews literature related to the banking sector, environmental factors that are conducive for banking sector and the strategies that are used to attract foreign banks. The chapter finally presents the summary of the chapter. 2.2 Review of past studies The global financial crisis of 2009 has had a profound impact on banks of all sizes. Institutions grapple with reduced public confidence, heightened shareholder scrutiny and increased regulatory oversight. Troubled banks have been in need of government assistance, intervention and various stimulus packages. Many institutions need to divest certain businesses, while others struggle to fully integrate recent acquisitions (Foley, 2000). Throughout the financial crisis, troubled banks have been in need of government assistance. Intervention and various stimulus packages included everything from the full nationalization of banks in certain countries to modest capital infusions. Other intervention measures incorporated asset purchases as well as liquidity support and guarantee programs. Many institutions need to divest certain businesses, while others struggle to fully integrate recent acquisitions (Gordon, 2011). Banks hit hardest are cleaning their balance sheets and protecting a ssets. Those who fared relatively well are reshaping their business and governance models. The current market turmoil will likely yield positive outcomes as banks reassess the way they do business and learn from these lessons the crisis brought to bear: Improve the way risk is managed across the enterprise, recognize that liquidity is crucial, commanding center stage, look at streamlining businesses by returning to core competencies and seize opportunities through strategic acquisitions, when possible (Emerson, 2007). To effectively manage risk across the enterprise, organizations must define their risk appetite, embed a risk-aware culture and institute more robust risk forecasting and stress-testing. In addition to risk management, liquidity is the focus of attention among executives, boards and regulators. Failing to manage liquidity properly can result in significant reputational damage or worse, insolvency. The fallout from the economic downturn has left banks struggling with other issues key to recovery, including tax and expense management; data quality in risk and finance; and greater regulation and government intervention. The industry response varies by institution. One thing is clear: the financial services industry is in a state of constant flux. Forward-looking institutions understand that formalizing processes and systems whether for risk management, liquidity risk or performance improvement is necessary to support strategic decision-making and prepare for the unexpected (Aslett, 2003). 2.2.1 The nature of the banking sector A bank is an institution which deals in money and credit. It accepts deposits from the public and grants loans and advances to those who are in need of funds for various purposes. A bank is a financial organization where people deposit their money to keep it safe. A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets (Glover, 1986). Banking is an activity which involves acceptance of deposits for the purpose of lending or investing. In addition to accepting deposits and lending funds, banking also involves providing various other services along with its main banking activity. These are mainly agency services, but include several general services as well (Casu Girardone, 2009). A banker is one who undertakes banking activities, accepting deposits and lending money for different purposes. Banking is an activity of accepting funds from the public for th e purpose of lending or investment. The essential features of banking activities are as follows:- accepting deposits from public, lending or investment of such deposits, incidental to the activities of accepting deposits for lending or investing, banks undertake activities like promoting and mobilizing savings of the public, providing funds to trade and industry by way of discounting bills, overdraft, cash credit facility, and transfer of funds from one place to another, Providing agency services to customers, such as collection of bills, payment of insurance premium, purchase and sale of securities and other general services, such as issue of travelers cheques, credit cards, locker facility (Gordon, 2011). Money deposited with the bank is assured as far as its safety is concerned. Further the depositor is allowed to withdraw it whenever required. Banks allow interest on deposits. Such interest helps in the growth of funds deposited with the bank. Thus the rate of interest provid ed on deposits acts as an incentive to the depositors. Banking activities are considered to be the life blood of the national economy. Without banking services, trading and business activities cannot be carried on smoothly. Banks are the distributors and protectors of liquid capital which is of vital significance to a developing country (Arteaga Jeffus, 2007). Efficient administration of the banking system helps in the economic growth of the nation. Banking is useful to trade and commerce. Banking activities are useful to trade and industry in the following ways. Money deposited in a bank remains safe. Precious articles too can be kept in the safe custody of banks in lockers, banks provide credit facilities to their customers. Customers with bank accounts also enjoy better credit in the business world, banks encourage the habit of saving and thrift among people, and they mobilize savings and invest them in productive activities. Thus, they help in increasing the rate of savings and investment in the country. Banks provide a convenient and safe means of transferring money from one place to another and facilitate business dealings/ transactions. Banks collect and realize bills, cheques, interest and dividend warrants etc. on behalf of their customers and foreign trade is facilitated considerably with the help of banks (Aslett, 2003). There are several types of banks, which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they begin to expand the range of products and services they offer, there are still key distinguishing traits. Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks. 2.2.2 Environmental factors conducive for the banking sector. In recent years, potential environmental liability has had a growing influence in the banking industry. Many banking institutions have adopted environmental risk management programs through the assistance, guidance, and/or requirements provided by various organizations. However, while environmental factors are growing in importance, the systematic use of environmental information throughout the banking industry is still not widespread. One possible cause of this is the lack of widely available, accurate, and comparable information that can be used by the banking industry (Cameron, 1995). Vigorous and sustained economic growth, fuelled by investment and entrepreneurship, is needed for the private sector to create more jobs and increase incomes of the poor. In turn, this will generate the revenues that governments need to expand access to health, education and infrastructure services and so help improve productivity. Various governments need to put in place measures that can attra ct foreign investment. Security should be improved, taxes and foreign policies streamlined in order to assure investors that their money will be put to effective use. But in many developing countries, investment rates are too low, productivity gains are insufficient, incentives for innovation are inadequate, returns on investment are not sufficiently predictable, and not enough secure, safe and adequately paid jobs are being created in the formal economy (Radelet Bhavnani, 2004). Developing countries and their donor partners consequently need to do much more to address the market failures and structural impediments that are holding back productive investment (both domestic and foreign), and to do it better, for longer periods and in a more strategic way. This will instill confidence in the minds of international investors who will then realize a need for enjoying such opportunities. Various countries in Africa have adopted privatization policy and are now encouraging foreign inv estment including banks (Arteaga Jeffus, 2007). Developing countries can help foster an investment climate that enables the private sector to flourish and fulfill its role as the main engine of growth. To do so, they can pursue macro-economic stability, improve the functioning of market-regulating institutions and strengthen procedures for contract enforcement and dispute settlement. Developing country governments can also improve the coherence of their policies in a range of areas such as trade, tax, competition and investment promotion that affect the volume of investment and its development impact. In Africa and East Africa in particular their many international banks that have opened doors, signifying that there is enabling climate that is attracting foreign commercial banks (Migliorisi Galmarini, 2004). Reforming the investment climate requires political will, drive and leadership to take on entrenched interests and inertia. Development agencies need to stay the course and support change agents within the public and private sectors and civil society. Development agencies also need to change the way they do business. They need to have access, individually or collectively, to an appropriate range of aid instruments. Their internal systems should not work against staff pursuing longer-term and riskier interventions. Staff working on the range of subjects relevant for promoting investment should be well co-ordinated. More of the goods and services that development agencies procure can be sourced on competitive terms in developing countries, to support local private sector development. Finally, public sector partners in developing countries can be encouraged to engage more with the private sector, such as through public-private partnerships (Radelet Bhavnani, 2004). The Government of Rwanda with the technical and financial support of its partners each year undertakes to develop an economic and financial program to ensure the short term implementat ion of the medium term program stated in the Economic Development and Poverty Reduction Strategy (EDPRS) is translated into tangible outcomes within the economy. Within the banking industry the National Bank of Rwanda (NBR) has ensured that financial institutions operating within the industry are on track as far as ensuring the smooth running of the economy is concerned. In this regard has been restructured the management of banks operating in Rwanda for the purpose of ensuring the sustainability of the industry. As a result of this restructuring the country is confident that the practice of banking in Rwanda is now conducted in a more professional way. Â  The new monetary policy reform which is one of the key components of the macroeconomic reform program falls within the responsibilities of the National Bank of Rwanda. It aims at creating an environment that is conducive to fostering production and investment within the entire economy through ensuring macroeconomic s tability. The National Banks action is thus geared towards building financial stability within the national economy while deepening the financial system. I take the opportunity to request the media and other stakeholders to work on encouraging Rwandans to use banking services by creating awareness about the importance of banking.   We will keep the banking system growing and contributing to the sustained economic growth of the country. Said the governor of National Bank of Rwanda. Exchange Rate Policy, NBR has continued to sell foreign exchange to the market in order to smoothen Rwandan Franc exchange rate fluctuations and to ensure that Rwandas exports remain competitive. The daily reference rate is more market driven as the interbank foreign exchange market develop. A code of conduct was shortly be in place after ratification by all banks as well as formation of a dealers association; this will guide banks in day to day interbank operations. It is recommended to all comm ercial banks to acquire a Reuters dealing platform in the near future and post their daily exchange rates to their websites where possible. Banking Licenses, According to the Governor, NBR has set a new licensing policy.   NBR encourages regional Banks to come to Rwanda looking to merge with the small local banks in Rwanda instead of starting a fresh. They are also encouraging them to open new branches in rural areas instead crowding Kigali City which has enough banks already. The major requirements in starting a bank are a minimum of Rwf 5 billion and a business plan. The governor added. Financial sector deepening, the ongoing programs to implement the Financial Sector Development Program (FSDP) will be accelerated and most of them completed this year. This system will cover the banking system and MFI sector reforms, the capital market development, the non- bank financial service regulation and the modernization of the payments system (Aslett, 2003). Banking sector Reforms, The main priorities this year will include the full application of Risk Based Supervision and improved use of CAMELS benchmarks continued on site review of banks risk management processes and practices (Risk Management Program for Banks), the inclusion of the market risk component in the solvency ratio. Non banking financial sector, this year NBR continued to intensively draft laws so as to establish a more complete legal and regulatory framework for the supervision of the insurance sector, pension industry and other collective investment schemes. The legal instrument to be put in place include ; Regulations and Directives provided within the Insurance law, Insurance contract law, Mandatory insurance law, law regulating pension funds (public and private) and a law governing collective investment schemes, mainly mutual funds, unit trusts and investment companies (Independent news paper, 2nd June 2011). 2.2.3 Strategies used to attract foreign banks Many governments have tried to attract and encourage foreign investment through tax subsidies and tax holidays. Over the past few decades time-series econometric analysis and numerous surveys of international investors have shown that tax incentives are not the most influential factor for multinationals in selecting investment locations. More important are such factors as basic infrastructure, political stability, and the cost and availability of labor. The openness or internationalization of financial services is a complex issue as it is closely related to structural reforms in domestic financial sector with some perceived implications to macroeconomic stability (Migliorisi Galmarini, 2004). Foreign bank entry increases the efficiency of the domestic banking sector. Increased competition tends to reduce costs and to increase profits. The allocation of credits to the private sector may be improved since it is expected the evaluation and pricing of Credit risks to be more sophis ticated this may help foster higher. The presence of foreign banks helps build a domestic banking supervisory and legal framework, and enhance the overall transparency. In order for most governments to attract commercial banks from other countries to come and enjoy business, they improve security and equal investment opportunities. Independent institutions to regulate investments are set up in various countries for example the Rwanda Development Board. Such institutions provide relevant information regarding investing in the countries to prospective investors from other countries. It is through these institutions that foreign investors develop trust and confidence to do business in the country (Gordon, 2011). It is expected foreign banks to provide more stable sources of credit since they may refer to their parents for additional funding and they have easier access to international markets. Thus, domestic financial markets will be less vulnerable to domestic. Foreign banks may reduce the costs associated with recapitalizing and restructuring banks in the post-crisis period. Most of the investors need to know the steadiness and stability of the countrys currency in relation to the dollar. This assures investors that investing in such a country an activity worth a business and that their business will yield some profits and justify participation in such a sector (Galmarini, 2004). In most cases when decisions related to foreign investments are being made concern is given to Liquidity, that is, how liquid is the investment. Exchange rates and leverage of exchange rates, Tax implications tax havens or rates of tax in foreign country, Political stability how stable is the political front for example Zimbabwe is very unstable and therefore few commercial banks would go to there for business. Therefore for governments to attract commercial banks they need to put them in place and satisfy the foreign investors that the market is safe (Chowdhury, 2009). 2.3 Critical review (Gap analysis) The study will seek to identify how the banking sector in Rwanda and its environment as independent variable have been able to attract other commercial banks in East African region (Aslett, 2003). How the policies of the National Bank in Rwanda have favored and pulled other commercial banks from the region to come and participate in the banking industry. The researcher will further asses the gap between the two variables and cover the gap between the variables and the impact that analyses out the penetration of other banks in the banking sector of Rwanda. Foreign bank penetration can have several positive as well as negative implications for emerging and transition countries. On the positive side, foreign bank management practices and information technology may improve the efficiency of the domestic banking system, both directly and indirectly by competing with domestic financial institutions. Also, foreign banks may start to offer new financial services, may stimulate better re gulation, accounting standards and the financial and legal structure more broadly, and may also attract (other) foreign direct investments (FDI). Additionally, a growing supply of foreign bank credit can reduce the costs of obtaining loans for domestic firms. Importantly, foreign banks will be more independent of the local government and may have less incestuous relations with domestic firms. Lastly, well-capitalized foreign banks may be able and willing to keep lending to domestic firms during adverse economic conditions, as opposed to domestic banks which will possibly lower their credit supply (Gordon, 2011). On the negative side, foreign banks might just as well be less inclined to keep up their credit supply in the host country, for instance when the economic environment in their home country deteriorates. Another source of concern is that foreign banks may only provide credit to the large and often foreign owned (multinational) firms, leaving the bad corporate credit risks as well as the retail market and the related payment services to domestic banks (cherry picking). Lastly, foreign bank penetration, whether cross-border or by means of local subsidiaries, may weaken the position of the (less sophisticated) domestic banking system. Domestic banks that are not able to cope with the increased competitive pressures may for instance fail and lead to periods of severe financial instability (Taylor, 2008). Some pros and cons are exclusively related to a specific form of entry: through local subsidiaries or cross-border. Only by buying a subsidiary can a foreign bank provide new funds to recapitalize a troubled banking sector. Additionally, such subsidiaries can in times of crisis operate as a safe haven, and thus reduce the flow of domestic funds abroad as residents can now do their capital flight at home. Finally, cross border credit by foreign banks may lead to specific problems of financial instability. 2.4 Conceptual framework Global banks are involved in international lending and foreign currency trading, in addition to the more typical banking services. Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area that provide banking services to individuals. Banks have become more oriented toward marketing and sales. As a result, employees need to know about all types of products and services offered by banks. Community banks are based locally and offer more personal attention, which many individuals and small businesses prefer. In recent years, online banks which provide all services entirely over the Internet have entered the market, with some success. However, many traditional banks have also expanded to offer online banking, and some formerly Internet-only banks are opting to open branches (Chowdhury, 2009). Globalization has rendered international expanding activities increasingly important for the survival, growth and success of modern firms. Simultaneously, the banking industry has been undergoing major consolidation in recent years, with a number of global players emerging through successive mergers and acquisitions and going international to look for further investment opportunities (Drogendijk Hadjikhani, 2008). Competition is generally considered a positive force in most industries, it is supposed to have a positive impact on an industrys efficiency, quality of provision, innovation and international competitiveness. However, this issue has always been controversial in banking, as the perceived benefits derived from increased competition have to be weighed against the risks of potential instability. Within this fluid business environment, which is characterized by international mergers and acquisitions and extreme competition between the enterprises, the internationalization of banking work is a subject of major importance for researchers and economists (Germanidi, 1982). The financial crisis and the subsequ ent distrust of the existing banks have created an opportunity for new competitors to enter the market for financial services. An international bank is able to adopt for its presence in a country various forms. More specifically the Creation of representative office is the simplest form of extension, as it formed for an initial investigation of the foreigner banking market. The banks branches of this form do not handle any funds neither they execute financier transactions, while the bank that they represent, is not considered present in the foreigner country, either legally or for tax reasons (Glover, 1986). Globalization is the universal trend in economic markets and the focal point in the twenty-first century. Banking organizations shifted from highly centralized domestic organizations to dispersed global organizations. The main profit of the internationalization of banking work is the increase of the surplus of consumers. For the banking services the surplus of consumer is inc reased when the interest rate of sponsoring is decreased, while the interest-rate of deposits increases. More specifically, for a healthy competition, the profit in question is maximized, after it increases the interest-rates of deposits by decreasing the interest-rates of sponsoring and the cost of supplies (Gordon, 2011). A second profit from the internationalization of banking work is that the international banking extension increases the effectiveness of international capital by improving and their flow. This means that, the effectiveness of distribution of capital brings in economic contact lenders and borrowers from different countries. Another profit from the internationalization of financier markets, is the increasing degree of convergence of interest-rates of domestic market with those that exist in the Euromarkets. At the same time, the internationalization of financier markets leads to the weakening of the phenomenon of deportation of private investment in the public s ector, as in an environment of free market of capital, the prevention of the private investments from the state, is compensated, relatively easily, with the foreigner saving capital (Aslett, 2003). The cost from the internationalization of banking activities is found in the loss of income for the countries, as the internationalization of work leads to the escape of capital to countries where the committed deposits have higher interest or still, the central bank of that country keeps smaller compulsory percentage of capital from the commercial banks. Banks have an important role in an economy: they are intermediaries between people with shortages and surpluses of capital. Their products include savings, lending, investment, mediation and advice, payments, guarantees, and ownership and trust of real estate. These core activities generate two principal sources of income: interest earnings and provision earnings. In the first case, a bank is working on its own behalf and risk; and in the second case on behalf of and at the risk of its clients. It is usual to distinguish between different banking departments such as investment banking, commercial banking, corporate banking, private banking, trade finance, electronic banking, securities, financing and loans, savings and so on. Some banks specialize in one or more of these areas. Universal banks usually cover all activities (Glover, 1986). As one of the worlds largest economic sectors, and as one that reaches virtually every consumer and business, the financial services industry must be involved in mitigating climate change and its impacts. At the same time, banks face an immense but yet largely untapped opportunity to enter new markets and develop more efficient and environmentally sound industries that will benefit generations to come, while preserving their longstanding leadership role in wealth and capital formation. Banks have the reach, influence and access to capital required to lead the changes needed t o transform the industry (Arteaga Jeffus, 2007).. Figure : Conceptual framework Independent variable Dependent variable Enabling environment Political stability Macro economic policies Infrastructural developments Attraction of commercial banks Business opportunities Secure environment Market availability Impact Bank rate Financial exchange platform Controlled inflation Legal reserve Source: Researcher 2012 2.5 The Banking Sector in Rwanda The Government of Rwanda with the technical and financial support of its partners each year undertakes to develop an economic and financial program to ensure the short term implementation of the medium term program stated in the Economic Development and Poverty Reduction Strategy (EDPRS) is translated into tangible outcomes within the economy. Within the banking industry the National Bank of Rwanda (NBR) has ensured that financial institutions operating within the industry are on track as far as ensuring the smooth running of the economy is concerned. In this regard has been restructured the management of banks operating in Rwanda for the purpose of ensuring the sustainability of the industry. Recent developments in the financial sector highlight the importance of implementing bold strategies to mobilize domestic saving to increase the capacity of the domestic financial system to be in a position to meet the increasing demand of credit to finance big investment projects in the p ipeline (IMF, 2005). The government of Rwanda has tried as much as possible to improve security, stabilize the currency, and creating a conducive climate for foreign investor. Many banks have opened doors in Rwanda and are appreciation the industry. The country is looking forward to receive more foreign banks from East African community and beyond. In 2011, Rwandas economy evolved in a challenging international and regional economic environment. The world economy was marked by high oil and food prices, a sovereign debt crisis in the Euro zone and a debt ceiling crisis in the USA, while in the East Africa sub-region, inflationary pressures have been increasing at a very high pace, never recorded in the last decade. In the EAC region, inflation continued to rise in 2011 mainly owing to the increase in oil and food prices. In December 2011, on annual basis, inflation hit 27.0 percent in Uganda, 18.9 percent in Kenya from respectively 3.1 percent and 4.5 percent in December 2010. During the same period, headline inflation reached 19.8 percent in Tanzania and 14.9 percent in Burundi from 5.6 percent and 4.9 percent in December 2010 respectively (NBR, 2001). Similarly, inflation in Rwanda has been increasing as well but maintained at moderate levels. The annual headline inflation reached 8.3 percent in December 2011 from 0.23 percent in December 2010. Moderate inflation has been achieved due mainly to good harvest that kept domestic food markets stable, a relatively stable exchange rate, as well as well coordinated Government policies to mitigate the exogenous inflationary pressures. Despite the challenging international and regional economic environment, Rwanda managed to sustain dynamic economic activities in 2011, recording high performance in all sectors. Real GDP growth is estimated at 8.8 percent higher than 7.0 percent initially projected and 7.5 percent achieved in 2010. This growth was driven by agriculture sector (+8.2 percent) reflecting the i mpact of ongoing Government reforms and favorable climatic conditions. It was also pushed by the industry sector (+15.1 percent) and services sector (+8.5 percent) both boosted by significant improvement in credit market conditions. The dynamism in the Rwandan economic activities was also marked by a strong improvement in the external sector. The export sector in 2011 continued to perform better, sustained by traditional exports; where formal exports of goods covered 23.8 percent of imports in 2011, from 18.3 percent in the previous year, as a result of more rapid increase in exports. Indeed, exports value increased by 52.8 percent against 17.3 percent for imports. The National Bank of Rwanda has continued to maintain a prudent monetary policy and exchange rare in the economy that has continued to put confidence in the minds of the business community. The banking sector demonstrated positive stance with an increase in the balance sheet of 24.5 percent. The sector has been p rofitable, liquid and well capitalized to sustain growth but also resilient to external shocks as a result of strengthened legal, regulatory and supervisory framework. For instance, the Capital Adequacy Ratio (CAR) increased to 27.2 percent in 2011 from 24.4 percent 2010.This is well above the minimum required Capital Adequacy ratio of 15%, which shows the stability of the financial sector (NBR, 2001). 2.6 Summary In this chapter, the researcher presented literature related to banking sector, environmental factors necessary for attracting foreign commercial banks in the country, the researcher gave emphasis to the nature of banking sector and the strategies that are used to attract foreign banks in the country. The researcher through theoretical review of literature identified the areas related to attraction of foreign commercial banks in Rwanda that other researchers never covered. The researcher also identified the areas the through which the central bank of Rwanda has been instrumental in the attraction of foreign commercial banks through provision of a stable, free and secure banking environment in Rwanda. The relationship between the research variables and how they relate was also reviewed through the conceptual fragment and the reluctant effect was presented. CHAPTER THREE 3.0 RESEARCH DESIGN AND METHODOLOGY 3.1 Introduction This chapter discusses the different methods that the researcher used in carrying out the research. It presents the type of research design that was adopted by the researcher, the population of the research, sample size and sampling techniques. The chapter also presents data collection tools like the questionnaires and interviews together with the sources from where data was got. The chapter further gives the methods of data presentation, analysis and interpretation, the ethical considerations of the research together with validity and reliability. 3.2 Research Design A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure or a conceptual structure within which research conducted (Kothari, 2011). The researcher adopted descriptive and analytical research designs in order to ensure sufficient information and clarity of the research. The researcher based the research on both numerical and non numerical data meaning that it was both qualitative and quantitative. 3.3 Population According to Kothari (2001), the population in a research refers to all items in a unit of inquiry. The population of the research was 151 including 68 employees of KCB and 58 employees of Equity bank main branches located in the centre of Kigali city, 25 senior employees from National Bank of Rwanda were also be considered. Respondents were selected using purposive sampling technique to ensure that respondents with relevant data are contacted. 3.4 Sampling and Sample Size Sample size refers to the number of items to be selected from the population to constitute a sample (Kothari, 2011) The sample size of the study was selected using the Slovins fomula n ÃÆ' ªÃƒâ€¦Ã‚ ¾Ãƒâ€¦Ã‚   N/ (1+Ne2 ), where n is the sample size, N the population and e is the sampling error. (Adanza, 1995). Therefore, the sample size was 126/(1+126(0.0050.005) meaning that the sample size was 95 employees from Kenya Commercial Bank (50) and Equity bank (45) main branches. A sample size of 25 employees from National Bank of Rwanda was also considered. Purposive sampling technique was employed to select relevant respondents. 3.5 Data collection This refers to the instruments, tools or techniques that are used to collect data from different sources both primary and secondary (Kothari, 2011). This refers to the tools and instruments that the researcher used to collect the data for the research. These included questionnaires, interview guide and documentary review. To ensure validity and reliability of the data collected, data collection tools were clear, reliable, accurate and measurable. The researcher made sure that the instruments were free from bias. 3.5.1 Questionnaire The researcher designed clear questionnaire containing closed and open ended questions which were given to respondents to give their views about the study topic. The procedure for administering questionnaires included introduction, telling respondents the purpose of the study and requesting them to express their views about the study topic. 3.5.2 Interview Guide As earlier said, the researcher expects to hold short interviews with respondents who were not having enough time to fill questionnaires. The researcher did this with the help of interview guide. 3.5.3 Documentary Review This included reviewing written documents from different libraries, book centers and internet. 3.6 Sources of Data The researcher collected data from both primary and secondary sources. The researcher considered both sources as necessary to make the researcher clearer. 3.6.1 Primary Data This refers to data collected a fresh and for the first time and thus happens to original in character (Kothari, 2011) Primary data is data collected directly from the source; it is normally referred to as the original data. The researcher used questionnaire and interviews to get this data directly from respondents. 3.6.2 Secondary Data This refers to data that has already been collected by someone else and which has already been passed through the statistical process (Kothari, 2011) Secondary data is data that is got from written documents like text books, internet, journals and reports. The researcher got this data through the process of documentary review. 3.7 Data Analysis and Interpretation The researcher presented the collected data extracted from questionnaire and interview guide using table and various figures including graphs and pie charts. The presented data was later analysed and interpreted based on the frequencies and percentages of respondents views. 3.8 Ethical Considerations In the process of carrying out the researcher, the researcher maintained a cordial relationship with respondents, remained honest, genuine and focused to the research objectives. As a person of integrity, the researcher did not undertake research for personal gain, nor did the research have effect on others. Information from respondents was treated with confidentiality. CHAPTER FOUR 4.0 DATA ANALYSIS, PRESENTATION AND INTERPRETATION 4.1 Introduction This chapter deals with presentation, analysis and interpretation of the information given by respondents into more useful form that can facilitate decision making. The researcher presents the data by the help of tables and figures. The frequencies and percentages of respondents views were used to analyse and interpret collected data. 4.2 Social demographic characteristics of respondents The researcher analysed the age, education and experience of respondents in order to find out whether data was corrected from knowledgeable, mature and experienced respondents and can be trusted or not. Figure : Age of respondents Figure 2 presents the range of respondents age, in order to determine how old respondents were since are and maturity are related and views normally correspondent with respondents age Source: Primary data 2012 From figure 2, 75% of contacted respondents were above the age of 35. The researcher in interpreted respondents age as enough to make respondents give constructive views since they are all old enough to understand reasons why banks come to Rwanda and conditions that attracted them. Therefore the views given in this research are significant enough to be trusted and relied on in making further conclusions. Table : Gender of respondents Gender Frequency Percentage Male 50 42 Female 70 58 Total 120 100 Source: Primary data 2012 In table1, most of the contacted respondents were found to be female (58%) while their male counter parts were 42%. This according to the researcher meant that the contacted respondents were mainly female which could be the policies of contacted institutions in recruiting employees. Therefore, the views gives were from both male and female and therefore there is gender representation and can therefore be trusted. Figure : Respondents level of education Source: Primary data 2012 According to figure 3, 91% of the contacted respondents hold a university degree. With this image the researcher realise that the contacted respondents were qualified enough to understand the issues under study and their views are significant in making reliable conclusions about the banking sector of Rwanda and its enabling environment to attract other foreign banks in East African community. Table : Length of time respondents have worked in banks Period Frequency Percentage Less than 1 year 33 28 1 3years 65 54 Above 3 years 22 18 Total 120 100 Source: Primary data 2012 According to table 2, 72% of the contacted respondents had spent a period above 1 year. This according the researcher signified that respondents views given were out of experience and should therefore be trusted in making decisions. 4.3 Nature of Rwanda banking sector In this section, the researcher presents views of the respondents related to the nature of Rwanda banking sector so that a conclusion can be made upon them on the nature of the banking sector in Rwanda. Figure : Respondents description of Rwanda banking sector Source: Primary data 2012 According to figure 4, 92% of the contacted respondents described the banking sector in Rwanda as good. This led the researcher to the understanding that Rwandan banking sector is good enough to attract other commercial banks within East African community. Table : Respondents views on whether their expectations from Rwanda banking sector have been met View Frequency Percentage Have been met 81 85 Have not been met 0 0 Not sure 14 15 Total 95 100 Source: Primary data 2012 According to table 3, 81% of the contacted respondents said their expectations from the banking sector have been met. None of the contacted respondents said expectations have not been met. This made the researcher realise that Rwandan banking sector is good enough to satisfy expectations of the attracted banks because of the environmental factors and policies. When asked to give reasons for their answers, contacted respondents said that the business moves on smoothly and uninterruptedly(40%) while others said high profitability levels (38%) and 22% said the government policies are favourable to the banks. This served to make the researcher confirm that Rwandan baking sector has satisfied interests of the attracted banks because of it nature. Figure : How respondents consider Rwandan banking sector in relation to that of other countries Source: Primary data 2012 According to figure 5, 89% of the contacted respondents said the banking environment of Rwanda is much better. However, none of the contacted respondents said it is worse. This made the researcher confirm that Rwandan banking sector is better than in other countries and has capacity to attract foreign banks from East African community. When asked to give reasons for their answers contacted respondents revealed that the country has managed to control inflation compared to other countries (41%) while 29% said the national bank of Rwanda has effective monitoring of commercial banks. 27% of respondents said security in the country is paramount while 3% said there is free competition. This further justified the fact that Rwandan banking sector is attractive and sufficient enough to facilitate attraction of foreign banks from East African region. Table : What the National Bank of Rwanda has done to improve the banking sector What has been done Frequency Percentage Controlling inflation 32 34 Stability of the Rwanda franc 28 29 Training 20 21 Liberalisation 10 11 Monitoring 5 5 Total 25 100 Source: Primary data 2012 According to table 4, respondents contacted revealed that the National Bank of Rwanda has controlled inflation (34%), stabled the Rwanda Franc against the dollar (29%), and offered banking trainings (21%), liberalisation of the economy (11%) and monitoring of the banking environment. This made the researcher realise that the national bank of Rwanda has been very significant in creating enabling environment that has attracted foreign commercial banks from East African community. Figure : What officials from National Bank of Rwanda consider special on Rwanda banking sector than that of other banks Source: Primary data 2012 According to figure 6, it was revealed by the respondents that free completion in Rwanda banking sector makes it special (28%), low levels of inflation (20%) and that the sector is well organised (36%). Respondents also said that the Rwandan banking sector is properly monitored by the National Bank of Rwanda (16%). This means that with no doubt there are enabling factors that have made the Rwandan banking sector special compared to those of other countries. Table : Views of respondents from NBR on whether they think bank policies have favoured commercial banks in Rwanda View Frequency Percent