Strategic Analysis and Strategy Formulation of Tesco

Strategic Analysis and Strategy Formulation of Tesco Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries from a stall in the East End of London. His first days profit was  £1 and sales  £4. The Tesco brand (Tesco Tea) first appeared in 1924. The name comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jacks surname. The first Tesco store was opened in 1929 in Burnt Oak in North London, and Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. Nowadays its market capitalisation is about  £35 677 billions, which rank it at the 10th position. The first self-service store opened in St Albans in 1951 (still operational in 2009 as a Metro), and the first self-service supermarket in Maldon in 1956. Originally specialised in food and drink, it has gradually diversified into areas such as clothing, consumer electronics, financial services, telecoms, home, health and car insurance, dental plans, as well as retailing and renting DVDs, CDs, music downloads, Internet services and software. The principal activity of the Group is retailing and associated activities in the UK, the Republic of Ireland, Hungary, Poland, Czech Republic, Slovakia, Turkey, Thailand, South Korea, Malaysia, Japan, China and the US. The Group also provides retail banking and insurance services through its subsidiary Tesco Personal Finance. Tescos net sales excluding VAT reached  £62.5 billion (US$95 billion) in the financial year to February 2010. Tescos revenues are considerably smaller than Wal-Marts, which reached US$405 billion for the financial year ending January 2010, up by 1% , but they are comparable to Carrefours, whose turnover reached EUR 85.9 billion in 2009 (US$114 billion), down by 1.2%. The Groups selection, training, development and promotion policies ensure equal opportunities for all employees regardless of factors such as gender, marital status, race, age, sexual preference and orientation, colour, creed, ethnic origin, religion or belief, or disability. All decisions are based on merit. Internal communications are designed to ensure that employees are well informed about the business of the Group. Employees are encouraged to become involved in the financial performance of the Group through a variety of schemes, principally the Tesco employee profit-sharing scheme (Shares in Success), the savings-related share option scheme (Save As You Earn) and the partnership share plan (Buy As You Earn). 2. Strategic analysis 4 pillars sustain Tescos strategic positioning in any region of the world SWOT Strengths Supermarkets/hypermarkets, steady growth Private label Established position gives buying power and economies of scale Weaknesses Customer service Relatively small overall market share (just over 3%) Opportunities Different store concepts Room to increase market share Growing demand for premium/imported/organic stuff Car insurance and other non-food products Online shopping Threats Competition intense Saturation: hypermarkets 5 forces: Industry rivalry Very strong Fragmented and competitive market (consumers have wide choice) International retailers and smaller local rivals Threat of substitutes Also supply products (mainly private label) at discount Online retail (new and underdeveloped opportunity) Threat of new entrants Low, saturated, relatively high barriers to entry If large retailers were to start buying up smaller domestic rivals it would be a threat They would be bigger more economies of scale Bargaining power of suppliers Low As the market becomes less fragmented, will get even lower Customers such as Tesco represent large % of their revenue, so Tesco can dictate to suppliers Margins and prices lower with increase in private labels The retail business is very competitive and Tesco is fighting against several different competitors around the world to remain as one of the biggest retailers. A ranking of the different competitors shows that Tesco arrived at the 3rd place, distanced by Carrefour and Wal-Mart, which is much bigger in comparison of all other opponents. We will cast a glance to four main competitors: Wal-Mart, Carrefour, Schwart Beteiligunfs and Seven and I holdings. Wal-Mart is a giant in comparison of other, and that retailing share are slowly improving, around 0,1%, except for Wal-Mart which has a 0,3% growth. Wal-Mart Stores Inc. Wal-Mart (New York Stock Exchange) is an American retailer founded in 1962 by Sam Walton. In less than two decades the company was the dominant player on the American market and is nowadays, seen as a titan among other retailers. Its world retailing share is impressive and rose from 3,5 to 3,9% between 2008 and 2009. They had a profit of more than $ 13,4 billion for the year 2009, it is an increase of 5% in a difficult financial context, far ahead of Carrefour and Tesco. Moreover they have a cash flow of more than $ 11 billion, and we can easily imagine that they will be able to easily continue their expansion abroad. They are the main player on the American market and have different size of store : Hypermarkets, supermarkets, discounters, variety stores, mass merchandisers, warehouse clubs, clothing and footwear specialist retailers, internet retailing. Sales are still improving in the US market, probably because of the always low prices policy. A basic SWOT analysis shows: Strengths: Sales and profit, rivals are dwarf in comparison Performance in Latin America: they implemented with success in Brazil and Mexico Weaknesses: Saturation of the large format in the USA. They built as many supercenter as possible, and now have to target a new kind of hypermarket. Dependence on home market: the USA still remains Wal-Marts core activities, and it is quasi impossible to increase significantly its market share in this country. Opportunities: New concept of small stores: until now Wal-Mart is known for its supercenter, which are closer from a warehouse than a supermarket. They tried to developed new types of store, smaller to attract more clients from cities. Existing presence and future in emerging market. Wal-Mart is targeting expansion in Russia, but has a strong presence in Mexico and Brazil. Threats: Corporate image: this is probably the major threat for Wal-Mart. Dozens of articles were published, several movies and books as well to highlight how employee are treated. The company has a very bad image, and an anti union policy. This policy explains the failure of Wal-Mart in Germany. Sources: www.euromonitor.com Carrefour S.A Carrefour (Euronext) is a strong number 2 in the retailing sector, and Tesco clairly explained that its main objective was to take its seat. Even if in comparison of Wal Mart, Carrefour remains a dwarf, it is still far ahead of Tesco. Its world retailing share is between 1,1% in 2008 and 1,2% in 2009, its total net sales reached $ 144 billion in 2008, and those of Tesco were of $ 99 billion. However, Tesco had greater profits, but only in 2009 and due to the fact that Carrefour is facing difficult issues in emerging markets. They recently acquire several competitors in emerging markets, and their integration takes time and is quite costly. But the company will soon see its profit increasing. A SWOT analysis highlights: Strengths: Brand awareness and large size group: the group is well known and has the advantage to be very diversified, they are present on every segment: from the small to giant retailer. International and multi format reach: Carrefour is present in more than 30 countries, among retailing firm it is the one with the strongest presence abroad. Weaknesses: Low margins: they faced price pressure from Tesco abroad and Leclerc in the home market (France). So they are force to reduce their margin. Reliance on Western Europe Market: the company is still using western markets as its main cash cow, the development abroad has been very costly and is still not very profitable. But it is mainly due to a transition period. Opportunities: Recent and future new market entries: recent entry in Russia and Bulgaria will increase profits. The group is also targeting India. Re branding to bring more synergies: until now a lot of shops still had their own names like Champion, Shopià ¢Ã¢â€š ¬Ã‚ ¦ There is a new policy of rebranding all shops to gain in visibility. Threats: Challenges from the two largest discounters: Aldi and Schwartz are implementing Carrefours home market: France. There is a growing pressure on prices. Unfavourable economic conditions: even with a catch up of the world economy, some of Carrefour main markets like France, Italy or Spain are likely to have a weak economic growth which could have a negative impact on sales. Sources: www.euromonitor.com Seven I Holdings Co Seven I is the main retailer in Japan, far ahead in front of its main competitor AEON and a world retailing share of 0,7%. Profit for 2008 reached $892.3 million, down by 29% due to difficulties in the Japanese economy. SWOT analysis: Strengths: Brand awareness and efficiency: they are very present in Japan. Global presence, especially in Asia: this company is operating in 17 countries, with special focus on Asian market like South Korea, Malaysia, Thailand and Japan. Weaknesses: Under performance in non grocery retailing: in its store non grocery items represent 32% of sales, and this kind of product make the group more vulnerable. Heavy reliance on Japan: the group is in a tight corner, Japan remains its main cash cow and they need to diversify their funding sources. Opportunities: Growth opportunities in emerging market: the presence in China might be increased if they receive an authorization for franchising. They also have expansion plans in Thailand, but nowadays it might be risky due to political trouble. More synergy and economies of scale : among all its subsidiaries they can still improve economies of scale between brands and internet retailing. Threats: Price battle: there is an intensive price battle in Japan. AEON and Wal Mart developed aggressive pricing strategies, and forced Seven to reduce its margin. Japan might face demographic and economic difficulties. There is an ageing population and it could turn as a threat for this retail firm. Sources: www.euromonitor.com Schwarz Beteiligungs Gmbh Schwartz is a German firm mainly active in the hypermarket and discounter business. It is mainly known for its discount branch Lidl. It ranked 8th among global retailer, with a constant world retailing share of 0,6%, but it is the first discounter. Its main competitor is Aldi, ranked at 10th place. It is a family group and has a secret policy, so they do not release publicly the profit results, but the group cash flow reached $ 1,7 billion for 2008. SWOT analysis: Strengths: Group ownership and store concept: the group remains the propriety of one family, so they are well protected from takeover threats and shareholder pressure which could affect a long term strategy. Broad presence in Easter Europe: there is an important presence of the company in eastern Europe with two different brands, far ahead from its competitor Aldi, but still far behind other important competitors like Tesco or Carrefour. Weaknesses: International development confined in Europe: the group is present in Europe, but has no presence in any emerging market like BRICS. Bad corporate image: accused of spying its employee in Germany in 2008. Opportunities: New store formats and internet retailing: the group can develop new format in Europe which are saturated market. Extend presence in Easter Europe: expansion in Poland, Romania, and Bulgaria could generate important profits increase. Threats: Price wars: most of the discounters are engaged in a price wars to gain more and more customers, it could be a important threat because they are force to reduce their margin. Intensive competition among discounters. Sources: www.euromonitor.com Tesco is present in numerous different markets. We couldnt present all of them. So we choose the most strategic for the company in term of sales and profit, and we also add China and the USA because they are two giants market. We didnt show Tescos market share in Japan, because its present is not very important, the company is not in the top twenty retailers, the market is strongly dominated by Seven and AEON. A rapid overview of the table shows that Tesco expansion abroad is very successful. Indeed, in most of the case Tesco is number one in term of market share (Hungary, Czech Republic, Thailand), or number three (Poland and South Korea). Furthermore, in its home market Tesco is an unquestionable leader with more than 13,4% of market share. Abroad Tesco met its goal; the abroad expansion was always leaded by the motto abroad expansion is only justified to become number one, and in several markets like Czech Republic and Hungary, Tesco beneficiated of the first mover advantage. Tesco is definitely the most influent retailing firm in CEE countries, even if in Poland retailers like Biedronka or Carrefour are serious competitors. In comparison, results in China and in the USA might be seen as counter performance, but we have to adopt a relativist posture. China is a very competitive market, the market leader is GOME Electrical Appliances Holding Ltd, and has only 0,9% of market share. The first European firm is Auchan China, ranked at the 4th place and with 0,8% of market share. All competitors are in a tight corner, and no one can dominate the market. In the United State, Wal Mart dominates the market, and all others are dwarf in comparison. Becoming the market leader in the USA is an unrealistic goal. 3. Strategy formulation Tesco has a well-established and consistent strategy for growth, which has allowed them to strengthen their core UK business and drive expansion into new markets. The rationale for the strategy is to broaden the scope of the business to enable it to deliver strong, sustainable long-term growth by following the customer into large expanding markets at home such as financial services, non-food and telecoms and new markets abroad, initially in Central Europe and Asia, and more recently in the United States. The strategy to diversify the business was laid down in 1997 and has been the foundation of Tescos success in recent years. The objectives of the strategy are: To be a successful international retailer To grow the core UK business To be as strong in non-food as in food To develop retailing services such as Tesco Personal Finance, Telecoms and tesco.com To put community at the heart Their long term strategy is pictured in this Steering Wheel scheme: Source: Tesco Annual Report 09 Tesco is implemented in 14 countries, employing 470,000 people and has 4  331 stores worldwide. Source: Tesco Annual Report 09 First, in order to increase sales, Tesco needs to sell more products to existing customers in existing stores. In order to do so, the company has divided its offer into two main streams: products and services. Food and non-food products (fuel, closing, household, health beauty and entertainment goods) are leveraged by private labels programs. Customer segmentation was enhanced by the introduction in 1995 of the companys loyalty card, Tesco Clubcard, which provides benefits and discount to the firms regular customers. In addition, it provides a solid database on the customers needs and profiles. This substantial database is currently used to target identified customers segments by launching private labels which are sub-brands. Tescos Corporate Strategy can be summarized with this statement: Tesco has pulled off a trick that as no any other retailer. That is to appeal to all segments of the market. Tescos Private labels targeting identified segments: Source: Tesco: A case of retailing excellence-Coriolis Research On the other hand, services were expanded into four kinds: Tesco Financial Services named Tesco Bank which is 50/50 joint venture with Royal Band of Scotland. Products on offer include credit cards, loans, mortgages, savings accounts and several types of insurance, including car, home, life and travel; Travel Services: Focused on low-cost packages and travel deals. Joint-venture with Travelcare (UKs largest independent travel agency); iVillage.com: Shopping and information website for women in the UK. Tesco initially acquired a 50% stake and later 100%. It expanded the brand into magazines and books. Tesco Telecom: Home telephone and Internet services offering lower prices than British Telecom. Moreover, they launched a 50/50 Joint Venture with O2 to provide mobile phones services. A similar service has since been launched in Ireland and Slovakia. However, Tesco has not purchased or built a telecoms network, but instead has pursued a strategy of pairing its marketing strength with the expertise of existing telecoms operators. Second, Tesco developed new store formats to capture more customers. It was designed in order to suit varied shopping patterns of their customers. Its store portfolio was splitted into four different store formats: Express: Tesco Express stores are neighbourhood convenience shops, stocking mainly food with an emphasis on higher-margin products (due to small store size, and the necessity to maximise revenue per square foot) alongside everyday essentials. They are found in busy city centre districts, small shopping precincts in residential areas, small towns and on petrol station forecourts. Metro: High street store/shops in large city centre shopping areas aimed at workers, shoppers and local residents. Tesco Metro stores are sized between Tesco superstores and Tesco Express stores. The first Tesco Metro was opened in Covent Garden, London in 1992. Superstore stores offer a full range and many non-food products. These are standard large supermarkets, stocking groceries and a much smaller range of non-food goods than Extra stores. Extra hypermarkets are very large stores offering the maximum food and non-food range situated mainly out-of-town. Their number of these is now being increased by about 20 a year. Newer Tesco Extra stores are usually on two floors, with the ground floor for mainly food and the first floor for clothing, electronics and entertainment. Older stores have all sales on one floor and a cafe on a large upper balcony. In addition, Tesco became the world leader in e-grocery. Tesco has operated on the internet since 1994 and was the first retailer in the world to offer a robust home shopping service in 1996. Tesco.com was formally launched in 2000. It also has online operations in the Republic of Ireland and South Korea. Grocery sales are available within delivery range of selected stores, goods being hand-picked within each store. Third, Tesco expanded on global level. By the mid-90s Tesco realized that the UK retail market was saturated and the growth opportunities would be few. This necessity to expand its business, which was financed with its UKs operations profits, has to be leveraged by 5 prerequisites framing the market. It has to be a large market meaning that it must add significant scale to existing U.K business; The market has to be growing in order to participate in strong organic growth; Retail market has to be underdeveloped which means that there would be an underdeveloped competition and a large availability of premium location store; Opportunities for mass merchandise have to be high in order to use hypermarkets as the vehicle for growth, and thus skip the supermarket phase; Tesco seeks a direct market-leading position usually associated with higher returns. By the mid 90s, Tesco realized that the UK market is saturated and it would offer few opportunities for growth. To continue its success in the retail business, the company recognized the necessity to expand its retail business in the international markets. First, it has targeted the developing markets in Asia and Central-Eastern Europe. Then it decided to enter some developed market such as Japan in 2003 and the United States in 2007. After selling its operations in 1986, Tesco re-entered the Irish market in 1997 after the purchase of Power Supermarkets Ltd. Now it operates from 101 stores. They offer a home delivery shopping service as well as petrol, mobile telephone, personal finance, flower delivery service and a weight-loss programme. Also available is Tescos loyalty programme, the Clubcard. Tesco is now the grocery market leader in the Republic of Ireland. Tesco Ireland also claims to be the largest purchaser of Irish food with an estimated à ¢Ã¢â‚¬Å¡Ã‚ ¬1.5 billion annually. Tesco opened its first store in the Czech Republic in 1996 and now has over 84 stores, with further planned. Tesco opened its first stores in the Czech Republic by buying Kmarts operations for  £79 millions and converting them into Tesco stores. The retail sector in Czech Republic was highly fragmented which attracted Tesco to implement in this country (50 retailers covering about 20% of the total market). Tesco is also keen to expand non-food items and has already opened petrol stations and offers personal finance services in the Czech Republic. In 1995 Tesco launched in Hungary its first operation abroad, after purchasing US Kmarts operations. It also opened its first hypermarket in Hungary in the same year. Tesco operates through 101 stores in Hungary with further openings planned. Tesco offers its value, standard, healthy living and finest range in its stores. Tesco Hungary also offers a clothing line and personal finance services. Tesco entered the Polish market also in 1995. It currently operates from 334 stores. Tesco Poland offers the value, healthy living and own branded line of products as well as regional produce, petrol, personal finance services and on-line photo processing. In 1996 Tesco expanded in Slovakia. Now days there are 48 stores. They plan to introduce Tesco Express like local stores. Tesco Slovakia has recently put great emphasis on organic products. However, Tesco Slovakia caused controversy amongst the Slovak government when it was found to have come foul of food safety laws in 2006. In the year 2010 were in Tesco Extra in Bratislava opened the first self-service cash flow, which is also the first of its kind in Central Europe. Tesco entered Turkey in November 2003 by acquiring 5 hypermarkets of Kipa. Tesco remains focused on building infrastructure in Turkey to complete its expansion plans and has already introduced the Tesco Express format. There are plans to increase the rate of expansion as basic infrastructure is built. Lets just remind that Tesco has a small outlet in Calais, France since 1992. It is selling wine, beer and spirits in a single store of 1  400 m ². In 1999 Tesco bought 51% stake in the supermarket retailer Homeplus, which is a part of Samsung, to enter South Korea. The company had focused its location around Seouls developed region in order to become the countrys leading food retailer. Currently Tesco holds 94,6% of the shares in the venture. It operates hypermarkets as well as a home delivery shopping service. It is the second largest retailer in South Korea, just behind Shinsegae Group. On 14 May 2008, Tesco agreed to purchase 36 hypermarkets with a combination of food and non-food products from E-Land for $1.9  billion ( £976  million) in its biggest single acquisition, making Tesco the second largest in the country. The majority of the E-Land stores formerly belonged to French retailer Carrefour before 2006 and most of the stores will be converted to Tesco Homeplus outlets. Tescos South Korean discount store chain, Home Plus, currently has 66 outlets. Tesco entered China in 2004 by acquiring 50% ownership of Hymall, a Taiwan based hypermarket operator. In December 2006 it raised its stake to 90% in a  £180  million deal. Most of Tesco Chinas stores are based around Shanghai. However, Tesco plans to equip the business to expand more quickly and in different areas and take advantage of one of the largest market in the world. Tesco has been increasing its own brand products into the Chinese market as well as introducing the Tesco Express format. Tesco entered Japan in 2003, even though it is the second biggest food market after the US. In fact, the company considered that Japanese market has a strong potential, as it consisted of large number of consumers with high disposable income. Thus, they bought 78 stores of C Two stores for  £139  million in July 2003 by a buy-out. Later on April 2004 they bought stores from Frec. Tesco has adopted an approach which focuses on small corner shops operating similarly to its Express format rather than opening hypermarkets. It has also launched its range of software in Japan. Tesco opened its first store in Malaysia in May 2002 with the opening of its first hypermarket in Puchong, Selangor. It bought a 70% stake of Sime Darby, Malaysias oldest industrial group, to form Tesco Stores. Tesco Malaysia currently operates 32 Tesco and Tesco Extra stores. One third of total shops are in Selanagor with 11 stores. Tesco also acquired Makro, a local wholesaler which was rebranded Tesco Extra and provides products for local retailers. Tesco Malaysia offers a value range; own branded range, electronic goods, the loyalty clubcard and clothing. Tesco Malaysias clubcard introduced Green ClubCard Points in 2007 making Tesco Malaysia to be the first Tesco international business to introduce the scheme. Tesco entered Thailand in 1998 and operates through 380 stores as part of a joint venture with Charoen Pokphand and named the operation Tesco Lotus. This partnership was dissolved in 2003 when Charoen Pokphand sold its shares to Tesco. Tesco Lotus sells a diverse range of products from value food products to electronics to personal finance services. The company is keen to promote its green values and has partnered with the UNEP. Tesco Lotus claims to serve 20 million customers every month and that 97% of its goods are sourced from Thailand in order to fit local needs. In December 2000, Tesco acquired shops of Mackro Asia and entered Taiwan market. It offered special value lines targeting specific customer segments. However, in September 2005 Tesco announced that it was selling its operations to Carrefour and purchasing Carrefours stores in the Czech Republic and Slovakia. Both companies stated that they were concentrating their efforts in countries where they had strong market positions. In February 2006, Tesco announced its intention to move into the United States market, opening a chain of grocery convenience stores on the West Coast (Arizona, California and Nevada) in 2007 named Fresh Easy. Tesco purchased a 130,000  square metres (1,400,000  sq  ft) distribution centre in Riverside Country. The company established its U.S. headquarters in El Segundo, California. The first store opened in November 2007 with 100 more expected in the first year. They plan to open a new one every two-and-a-half days in the United States, to mimic the successful expansion of pharmacy chains such as Walgreens in the U.S. Currently Fresh Easy operates 135 stores in the United States. The company announced plans to open stores in wealthy suburbs of the Pakistans capital cities, Islamabad and Karachi. These new stores will be wholesale cash-and-carry businesses. They will compete with Makro and Carrefour who already operate in Pakistan and have done so for many years. Tesco have not yet ruled out plans to open stores in an Express format, though this format would cater more towards the countrys growing middle class. In addition, the project of implementing in Croatia is under construction. In 2009, Tescos International business delivered a very strong performance, helped in part by favourable exchange rate movements during the year, and excluding the United States contributed 51% of the growth in Group sales and 45% of the growth in Group trading profit. Total International sales grew strongly by 30.6% at actual exchange rates to  £17.9bn ( £13.7bn in 2008) and by 13.6% at constant exchange rates. Sales growth slowed in Europe during the second half, which reflected deteriorating economic conditions in a number of markets. In contrast, sales growth in Asia accelerated, driven by the acquisition of the 36 Homever stores in South Korea at the start of the second half. Finally, we can notice in this Group Sales/Space by Region chart that Tesco keep UKs market as their core business Source: Tesco Annual Report 09 4. Recommendations for long term strategic positioning for Tesco in Poland Be as strong in non-food as in food Develop retailing services such as Tesco Personal Finance, Telecoms and tesco.com Develop online shopping Improve customer service Acquire domestic small chain from traditional trade to reach consumers in small towns Open more Tesco Express in the cities for people looking for proximity Open delicatessen like stores Open small inside restaurants in the supermarkets

Proposal Online Banking

There has been a fundamental shift in the use of banking delivery channels toward self-service channels such the Internet [Hernandez-Ortega, 2007]. Internet banking, which was introduced in the early 1990s [Srivastava, 2007], makes it possible to replace the manual service functions provided by bank employees, along with the brick and mortar investment required of financial institutions [Dandapani, et al. , 2008]. It represents an electronic marketplace where consumers may conduct their financial transactions virtually [Reiser, 1997; Daniel, 1999].Today, financial service institutions that offer their services over the Internet are keen to accelerate the adoption process, knowing that the cost of delivering the service over the Internet is much less than delivering the same service over-the-counter [Polatoglu and Ekin, 2001]. In addition, Internet banking is an important innovation that presents institutions a vital distribution channel, which could act as a means of attaining compet itive advantage through cost reduction and better satisfaction of customer needs [Carrington, et al.  , 1997; Kassim and Abdulla, 2006; Mols, 1999].In response to the increased competition, banks in Malaysia are starting to leverage the Internet as a means to provide financial services. An empirical study by Sulaiman, et al. [2005] suggests that the adopters' perceptions of e-banking in developing countries appear to be very favorable. In Malaysia, however, despite the authorities? encouragement to the public to adopt Internet banking, traditional branch-based retail banking remains the most common method for conducting banking transactions.For example, Sivanand, et al.  [2004] found that, although more than 80% of their respondents were aware of Internet banking, less than 10% were currently using the services. With regard to information technology adoption, previous studies have suggested that the set of beliefs that influences an individual to adopt the technology may not be the same as the set of beliefs that leads to his or her initial adoption [Venkatesh, et al. , 2003]. According to Kruglanski and Klar [1985], each time a particular goal of an individual is achieved by a specific behavior, the cognitive link  between the behavior and goal becomes stronger.The result is a cognitive goal-behavior link that creates an automatic response behavior (i. e. , habit). This may suggest that factors that are considered by an individual in the initial stage of adoption may be different from the factors that are considered by him or her after using the technology. Repurchasing intention is one of the important constructs being studied by researchers [Soderlund and Ohman, 2003].Zeithaml, et al.  [1996] suggest that repurchasing intention is associated with a service provider?s ability to get its customers to remain loyal (i. e. , repurchase from the company), spend more with the company, and pay price premiums. In online business, the founder of Amazon. com, Jeff Bezos, noted that one way to build a relationship with customers is by observing their purchase behavior over time [Porter, 1998]. In another aspect, previous literature has highlighted numerous barriers to the adoption of Internet banking.One local finding suggests that the adoption of Internet banking is not so encouraging in Malaysia mainly because of factors such as lack of Internet accessibility, poor awareness, and security concerns [Suganthi, et al. , 2001]. Although there is sufficient evidence that the electronic revolution has commenced in Malaysia, Internet banking research, however, is still in its infancy, particularly with regard to the predictors of intention among current users to continue using the services.This study was undertaken, therefore, to better understand the predictors that may influence current Internet banking users to continue using these services. This paper attempts to determine predictors that may influence the current users of Internet banking to continue using the services. Based on the literature reviewed, we strongly believe that trust, compatibility, and ease of use are key predictors of their intention to continue using Internet banking services. The current users of Internet banking services in Klang Valley, Malaysia, were chosen as the population of this study.1.1 Research Question The objective of this study attempts to answer the following research question: Whether Internet banking services in Klang Valley Malaysia is accepted the Internet banking services for the country growth. Whether Internet banking services could improve the performance in Klang Valley in  Malaysia?1. 2 Problem Statement The explosion of internet usage and the huge funding initiatives in electronic banking have drawn the attention of researchers towards internet banking. (Yi-Shun Wang, Yu-Min Wang, Hsin-Hui Lin, Tzung-I Tang, (2003)) Point out the need for research to identify the factor that determine acceptance of internet banking by the user.  (Yi-Shun Wang, Yu-Min Wang, Hsin-Hui Lin, Tzung-I Tang, (2003))This study focuses on the adoption of Internet banking services by corporate customers in Malaysia and aims to gain a deeper understanding of the factors influencing the adoption of Internet banking services by Malaysian, particularly in Klang Valley customers. (Syed Shah Alam, Rosidah Musa, Faridah Hassan, (2009))1.3 Objective of the StudyThe objective of this project is to study effect of Internet banking services in Klang valley Malaysia on determinant of user acceptance of internet banking. Based on this goal, I have come up with sub-objectives to find out the determinants. The main objective why this study is being undertaken is to analyze whether the internet banking is accepted by people at Klang Valley in Malaysia. To determine that people in Klang Valley can adobe and can used it to improve their bank performance in the future.1.4 Significant of the StudyThis information is at least be able to provi de knowledge to researcher and me as well whether there is effect of financial risk management on financial sector performance in Malaysia and also how far the correlation between it.1.4.2 Investor This knowledge can be used by investor about the impact of financial risk management on financial sector in Malaysia when they need to make a certain decision1.4.3 To Generate Further Research With this study and other thousands research, it would be best to generate more knowledge for the future. As done by past professors and researchers, which now are being updated and improved to adapt to new environment and modern civilization. Not all past research can be reliable in the future, that’s why it is important to continuously keep it updated.1.5 Scope of Study The scope of this study are consist of banks in Malaysia and will focus in major area which is in Klang Valley. These studies are based bank in Klang Valley Malaysia. The data is a primary data and will be gathered directly from customer at the area.CHAPTER TWO LITERATURE REVIEW2.0 Introduction Basically, in this chapter will briefly explain in detail regarding the previous researches that have been done on overall topics about the determinants of user acceptance of internet banking ; an empirical study Klang Valley in Malaysia. There are several arguments favors and against on this debating issues that had been discover through previous studies.2.1 Previous studiesLichtenstein and Williamson from Australian (2006)Used mass media theories through individual and focus group discussion to determine the decision of internet banking adoption. Findings showed that Australian older people with low income reported themselves were lack of awareness towards internet banking and its advantage, lack of internet lack of internet access and internet confidence, inadequate knowledge and support to use or initial setting up procedure, lack of trust, security and privacy risks were among the reasons of not using inter net banking services.Aktas and Topcu from Turkey (2010)Found that security and reliability were among the important factor that influences the adoption of internet banking. This followed by infrastructural competencies and user friendliness among respondents with accessibility to internet, aged 20 to 45, higher level of education and socioeconomic class. The study used Multi-criteria decision aid-based (MCDA-based).Suganthi and Balachandran from Malaysia (2001)Focused on the factors of accessibility, reluctance to changes, costs, trust in one’s bank, security concerns, convenience, ease of use through online survey that potentially influence internet banking adoption. The results revealed that there were positive significant relationships between accessibility, reluctance to changes and awareness with internet banking adoption.Chung and Payter from Malaysia (2002)Study the information, legal statement, order, ease of use, aesthetics effects, performance and others elements of bank that provide internet banking. The study found that a negative significant relationship between age and internet banking adoption among Klang Valley adopters. Monthly gross income and job position level had positive significant relationship with internet banking adoption among Klang Valley adopters. Further, there was no significant relationship between gender, marital status, ethnic group, level  of education with internet banking adoption.Khalil and Pearson from Malaysia (2007)Applied theory of diffusion of innovation (IDT) (Rogers, 1995) that focused on five key belief (relative advantage, compatibility, complexity, trial ability and obeservability) and trust (Mayers et al., 1995) to explore the intention to use internet banking among university students. The results of structural equation modeling showed that trust, relative advantage and trial ability significantly influence attitude. The attitude was play as moderator that influences intention to use technology that is internet banking.CHAPTER THREE DATA AND METHODOLOGY3.0 IntroductionThis chapter will focus on the method that will applied, where the procedures is clearly stated and defined. The data section clearly elaborate on the process of collecting data that needs to be obtained in order to perform the tests while the methodology section elaborates on the types of methods or tests that will be performed in order to determine the effective results.3.1 QuestionnaireData that used in this study is by using the number of 300 executive level peoples with a questionnaire investigation. This is based on the primary data that been collect and obtain by the executive level people in the area.3.2 Research Model and Hypotheses1. Perceived usefulness 2. Perceived ease of used 3. Perceived credibility3.3 Computer Self-EfficacyIn general, prior research has suggested a positive relationship between experience with computing technology and a variety of outcomes such as an affect towards computers and comp uter usage (Levin and Gordon, 1989; Harrison and Rainer, 1992; Agarwal and Prasad, 1999). A related construct, called computer self-efficacy, has been examined in the IS literature (e.g. Compeau and Higgins, 1995; Compeau et al., 1999; Hong et al., 2001). Computer self-efficacy is defined as the judgment of one’s ability to use a computer (Compeau and Higgins, 1995).3.4 Research Framework The research framework in this study provides a picture regarding the relationship between Computer Self-Efficiency, Perceived Usefulness, Perceived Ease of Use, and Perceived Credibility to Behavior Intention. The Computer Self- Efficacy is the main thing to develop to the three and becoming the Behavior Intention. The figure below will show the relationship of the variables.3.5 Research Model This section will briefly explain the research model and methodology related to this research on the determinant of user acceptance of internet banking : an imperial study Klang Valley in Malaysia. Th e research model will be used to find the relationship between the three factors and will achieved the objectives of this study.3.6 Method usedDescriptive statisticThe following definitions are vital in understanding descriptive statistics: C Variables are quantities or qualities that may assume any one of a set of values. Variables may be classified as nominal, ordinal, or interval. — Nominal variables use names, categories, or labels for qualitative values. Typical nominal variables include gender, ethnicity, job title, and so forth. — Ordinal variables, like nominal variables, are categorical variables. However, the order or rank of the categories is meaningful.For example, staff members may be asked to indicate their satisfaction with a training course on an ordinal scale ranging from â€Å"poor† to â€Å"excellent. † Such categories could be converted to a numerical scale for further analysis. — Interval variables are purely numeric variables. The nominal and ordinal variables noted above are discrete since they do not permit making statements about degree, e. g. , â€Å"Person A is three times more male than person B† or â€Å"Person A rated the course as five times more excellent than person B.†Interval variables are continuous, and the difference between values is both meaningful and allows statements about extent or degree. Income and age are interval variables. C Frequency distributions summarize and compress data by grouping them into classes and recording how many data points fall into each class. The frequency distribution is the foundation of descriptive statistics. It is a prerequisite for the various graphs used to display data and the basic statistics used to describe a data set, such as the mean, median, mode, variance, standard deviation, etc. (See the module on Frequency Distribution for more information.)C. Measures of Central Tendency indicate the middle and commonly occurring points in a d ata set. The three main measures of central tendency are discussed below. — Mean is the average, the most common measure of central tendency. The mean of a population is designated by the Greek letter mu (F). The mean of a sample is designated by the symbol x-bar (0). The mean may not always be the best measure of central tendency, especially if data are skewed. For example, average income is often misleading since those few individuals with extremely high incomes may raise the overall average.  Ã¢â‚¬â€ Median is the value in the middle of the data set when the measurements are arranged in order of magnitude.For example, if 11 individuals were weighed and their weights arranged in ascending or descending order, the sixth value is the median since five values fall both above and below the sixth value. Median family income is often used in statistics because this value represents the exact middle of the data better than the mean. Fifty percent of families would have incomes above or below the median. — Mode is the value occurring most often in the data.If the largest group of people in a sample measuring age were 25 years old, then 25 would be the mode. The mode is the least commonly used measure of central tendency, particularly in large data sets. However, the mode is still important for describing a data set, especially when more than one value occurs frequently. In this instance, the data would be described as bimodal or multimodal, depending on whether two or more values occur frequently in the data set. C Measures of Dispersion indicate how spread out the data are around the mean. Measures of dispersion are especially helpful when data are normally distributed, i.  e. closely resemble the bell curve.The most common measures of dispersion follow. — Variance is expressed as the sum of the squares of the differences between each observation and the mean, which quantity is then divided by the sample size. For populations, it is design ated by the square of the Greek letter sigma (F2 ). For samples, it is designated by the square of the letter s (s2). Since this is a quadratic expression, i. e. a number raised to the second power, variance is the second moment of statistics. Variance is used less frequently than standard deviation as a measure of dispersion.Variance can be used when we want to quickly compare the variability of two or more sets of interval data. In general, the higher the variance, the more spread out the data. — Standard deviation is expressed as the positive square root of the variance, i. e. F for populations and s for samples. It is the average difference between observed values and the mean. The standard deviation is used when expressing dispersion in the same units as the original measurements. It is used more commonly than the variance in expressing the degree to which data are spread out.Pearson product-moment correlation coefficientDefinition Pearson's correlation coefficient betwe en two variables is defined as the covariance of the two variables divided by the product of their standard deviations. The form of the definition involves a â€Å"product moment†, that is, the mean (the first moment about the origin) of the product of the mean-adjusted random variables; hence the modifier product-moment in the name. For a populationPearson's correlation coefficient when applied to a population is commonly represented by the Greek letter Ï  (rho) and may be referred to as the population correlation coefficient or the population Pearson correlation coefficient. The formula for Ï  is:For a sample Pearson's correlation coefficient when applied to a sample is commonly represented by the letter r and may be referred to as the sample correlation coefficient or the sample Pearson correlation coefficient. We can obtain a formula for r by substituting estimates of the covariances and variances based on a sample into the formula above. That formula forr is:An equiv alent expression gives the correlation coefficient as the mean of the products of the standard scores. Based on a sample of paired data (Xi, Yi), the sample Pearson correlation coefficient is where are the standard score, sample mean, and sample standard deviation, respectively. Mathematical properties The absolute value of both the sample and population Pearson correlation coefficients are less than or equal to 1.Correlations equal to 1 or -1 correspond to data points lying exactly on a line (in the case of the sample correlation), or to a bivariate distribution entirely supported on a line (in the case of the population correlation). The Pearson correlation coefficient is symmetric: corr(X,Y) = corr(Y,X). A key mathematical property of the Pearson correlation coefficient is that it is invariant (up to a sign) to separate changes in location and scale in the two variables.That is, we may transform X to a + bX and transform Y to c + dY, where a, b, c, and d are constants, without ch anging the correlation coefficient (this fact holds for both the population and sample Pearson correlation coefficients). Note that more general linear transformations do change the correlation: see a later section for an application of this. The Pearson correlation can be expressed in terms of uncentered moments.Since ÃŽ ¼X = E(X), ÏÆ'X2 = E[(X − E(X))2] = E(X2) − E2(X) and likewise for Y, and since the correlation can also be written as Alternative formulae for the sample Pearson correlation coefficient are also available: The above formula suggests a convenient single-pass algorithm for calculating sample correlations, but, depending on the numbers involved, it can sometimes be numerically unstable.Linear regressionIn linear regression, the model specification is that the dependent variable, is a linear combination of the parameters (but need not be linear in the independent variables). For example, in simple linear regression for modeling data points there is one in dependent variable: , and two parameters, and : straight line: (In multiple linear regression, there are several independent variables or functions of independent variables. ) Adding a term in xi2 to the preceding regression gives: parabola:This is still linear regression; although the expression on the right hand side is quadratic in the independent variable , it is linear in the parameters , and In both cases, is an error term and the subscript indexes a particular observation. Given a random sample from the population, we estimate the population parameters and obtain the sample linear regression model: The residual, , is the difference between the value of the dependent variable predicted by the model, and the true value of the dependent variable . One method of estimation is ordinary least squares.This method obtains parameter estimates that minimize the sum of squared residuals, SSE,[17][18] also sometimes denoted RSS: Minimization of this function results in a set of normal eq uations, a set of simultaneous linear equations in the parameters, which are solved to yield the parameter estimators, . Illustration of linear regression on a data set. In the case of simple regression, the formulas for the least squares estimates are where is the mean (average) of the values and is the mean of the values. See simple linear regression for a derivation of these formulas and a numerical example.Under the assumption that the population error term has a constant variance, the estimate of that variance is given by: This is called the mean square error (MSE) of the regression. The standard errors of the parameter estimates are given by Under the further assumption that the population error term is normally distributed, the researcher can use these estimated standard errors to create confidence intervals and conduct hypothesis tests about the population parameters.General linear modelIn the more general multiple regression model, there are p independent variables:  wher e xij is the ith observation on the jth independent variable, and where the first independent variable takes the value 1 for all i (so is the regression intercept). The least squares parameter estimates are obtained from p normal equations. The residual can be written as The normal equations are In matrix notation, the normal equations are written as where the ij element of X is xij, the i element of the column vector Y is yi, and the j element of is . Thus  X is nÃâ€"p, Y is nÃâ€"1, and is pÃâ€"1. The solution is For a derivation, see linear least squares, and for a numerical example, see linear regression (example).3.7 HypothesisThe null hypothesis of the study is developed to cater for the pooling regression model. The null hypotheses are: 1. (A) H01: Computer self-efficacy will not have a positive effect on perceived usefulness of the Internet banking systems. H11: Computer self-efficacy will have a positive effect on perceived usefulness of the Internet banking systems. (B ) H01: Computer self-efficacy will not have a positive effect on perceived ease of use of the Internet banking systems.H11: Computer self-efficacy will have a positive effect on perceived ease of  use of the Internet banking systems. (C) H01: Computer self-efficacy will not have a negative effect on perceived credibility of the Internet banking systems. H11: Computer self-efficacy will have a negative effect on perceived credibility of the Internet banking systems. 2. H02: Perceived ease of use will not have a positive effect on perceived usefulness of the Internet banking systems. H12: Perceived ease of use will have a positive effect on perceived usefulness of the Internet banking systems.3. H03: Perceived ease of use will not have a positive effect on perceived credibility of the Internet banking systems. H13: Perceived ease of use will have a positive effect on perceived credibility of the Internet banking systems. 4. H04: Perceived ease of use will not have a positive effect on behavioral intention to use the Internet banking systems. H14: Perceived ease of use will have a positive effect on behavioral intention to use the Internet banking systems.3. 8 Expected OutcomeUsing the technology acceptance model as a theoretical framework, this study introduced â€Å"perceived credibility† as a new TAM factor to reflect the user’s security and privacy concerns in the acceptance of Internet banking, and examined the effect of computer self-efficacy on the intention to use Internet banking. Provide evidence of the significant effects of the individual difference variable (i. e. computer self-efficacy) on behavioral intention through perceived ease of use, perceived usefulness, and perceived credibility.

Thailand vs. Indonesia

I enjoy spending my summer vacation traveling. I have visited a lot of countries but here i am going to talk about two beautiful countries,Thailand and Indonesia. They both beautiful. They're very similar but different in some points. For me, the atmosphere in the streets of Thailand and Indonesia is very similar. Both streets are full of life. In Thailand, stalls fill it streets. You can find a lot of things accessories, books, movies and even clothes. Trees shade the roads, the smell of fresh air filling the place. I'd go out strolling by myself and lose sense of time.In Indonesia bazaars and food trucks are everywhere. The tropical rain forests there are just breathtaking . The sight of nature and stalls reminded me of Thailand. In spite of their similarities, Thailand and Indonesia are different in some points. Indonesia is an Islamic country. The number of big mosques there is 100,000 while the small ones are over half a million. There is no transportation other than cars; the t raffic is 24/7 which can waste a lot of time. There is a huge amount of Homeless people begging for food or money which is very sad and heartbreaking fact.On the other hand, there are 3,494 mosques in Thailand even though it's a Buddhist country. There are subways and metros that are very well arranged which saves a lot of time. The citizens there are financially stable, you seldom see people panhandling there. In my point of view I find the similarity and differences in both countries beautiful. Thailand and Indonesia are different in how developed they are, but they're also similar in nature and how energetic they are. I enjoyed both countries and I sure intend to spend my next vacation in one of these two beautiful countries again.

Maturity And Personal Growth Often Appear Through The...

Maturity and personal growth often appear through the experience of successes, failures, tragedies, and most importantly, the loss of childhood innocence. Harper Lee’s novel, To Kill a Mockingbird presents the ideas of coming of age and the loss of innocence while the Great Depression was occurring in the 1930s. Racism and gender inequality were widespread issues during this time period which gave rise to the Civil Rights Movement. To Kill a Mockingbird teaches its readers that the coexistence of tragedy and the loss of innocence affect personal growth through the way in which several innocent characters suffer the wrath of prejudices, resulting in imprisonment, murder, and near-death experiences. Harper Lee relates many of the characters†¦show more content†¦Harper Lee’s life is manifested through the symbol of the mockingbird which represents innocence in the novel. The illustration of the mockingbird is present in several characters including: Tom Robinson, Arthur â€Å"Boo† Radley, Dolphus Raymond, and Atticus Finch. Tom Robinson is accused of the rape of Mayella Ewell. Scout and Jem observe the case from above and hear the verdict, but at this point in the novel, they do not understand the prevalence of racism or what it means. Consequently, a character who has been marked as guilty for the majority of the novel emerges as an innocent man. According to Ruby Wall, who was raised in the Great Depression, â€Å"A mockingbird represents communication, being joyful, unity, security, and even purity.† Arthur â€Å"Boo† Radley is depicted as a mockingbird in the novel. Accusations of murder constantly spread around about Boo. In reality, Boo never harmed anyone or anything and remains pure. Following the image of a mockingbird, Boo merely wanted to fit into society by being like others. 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