Knowledge Update

Empirical research has established a strong relationship between economic growth and health (Bloom et al. 2011). Economic growth is affected by ill health through increased expenditures on the individuals, households and the health system.

Management of every organization serving any sector and operating in any industry must prioritize marketing and related activities. Understanding and improving customer experiences are important. Digitization and technology enhancement has become a need of hour. Survival is in digitization.  But to what extent? That’s the question to answer and answer lies on the quantum and scalability of operations of the company.

Marketers have to realize the increasing changing patterns and lifestyle of post millennials. Their likes are different and so are their life styles. Marketing is not only a company centric activity but a customer centric activity as well. Turning to the digital content and creating a mutual value for all stake holders through digital marketing has harvested great results. We have witnessed the marvelous growth and brand emergence of companies like Amazon, Linked-In and e-Bay through digital marketing concepts and ideas. The fact being that digital marketing approach ensures that information is available to all the stakeholders. Digital Marketing gives power to marketers to engage with customers completely 24/7 which is of course an excellent opportunity. This is what big brands are following and that is the power they have gained by digital marketing. For customers availability of 24/7 is what they want and companies are counting on each bit of content that is produced by consumers on social media, blogs and various other feed forward and feedback mechanisms.

Content has been most crucial element of digital marketing. The power of digitization is immense and is unchallenged in its position. Content may be in form of blogs, videos and written format as well. Facebook live and Bumps video content has been a latest addition in content market strategies. Companies are offering high level of interactivity to their clients through digital marketing. Social media and blogging has offered highest levels of interactivity to the customers. Clients are more empowered and confident when it comes to expressions. Digital channels like Facebook, Twitter, Instagram, LinkedIn and blogs have proved to be brand revamping. Hashtags, likes, shares are representing the companies in digital world. Digital marketing provides a growth and development opportunities for companies to enhance the scalability and effectiveness of operations. Digital marketing has enabled companies to improve their business profiles thus enhancing the brand power and reputation, because the content is well read by customers and on the basis of power of content purchase decisions are taken. Facebook has a major role to play in SEO and page rankings. Customers take the content on Facebook very seriously and keep following the brands they like, keep up with the information and latest happening and offerings with their favourite brands. So companies must focus on the online content more often, keep it updated and transparent to catch on customer’s positivity and brand love.

Bottom-line: Digital marketing has immense scope to reach and every segment of target consumer but how successfully companies tap the potential, that need to be looked upon. So it’s not only how we did but also how strongly and seriously we succeeded to create a useful content.

It is easy to become overwhelmed with the sheer amount of syllabus that we, as faculty, need to work through during the semester. Inevitably, there are sections that even we struggle to find interesting. It can become hard to motivate students when we are teaching such sections. I’ve found that learning stations work well for me in such cases. The preparation that I have to put in to design the stations and process always means that I end up finding an interesting angle from which to approach the lesson. The fact that students have to move around the classroom and complete activities with differing levels of difficulty always means that they are not distracted from the core material and engage with it in a more meaningful way.

Some of you may be familiar with the concept of a learning station and others not. Therefore, for those of you who have not used this particular tool before, I will provide a brief outline as to what it is. So what is a learning station? Rollins (23 March 2017, online) writes: ‘at their best, stations encourage student autonomy, critical thinking, collaboration, and student engagement’. Learning stations can only achieve this when they have been well designed by us, the lecturer. Picture your classroom with between four – six learning stations in the form of desks spaced about your classroom with different activities based on the material you are teaching that day. Each desk has a set of instructions and an activity. Students move around the classroom in groups and are given time at each station in order to complete the activity. The teacher keeps a strict monitor on the time and can either go from group to group offering encouragement or be stationary at one group and have a “teacher-led station”. Stations are not a way of removing any responsibility for the learning from the teacher but are a way of placing some of the responsibility of learning on the students. They are a dynamic and interactive way of bringing some fun to your classroom, without sacrificing content time.

Rollins (23 March 2017, online) provides the following tips to think about when planning learning stations so that the experience can be maximized by both you and your students.
Six tips for planning Learning Stations

1. Assign team leaders to help students navigate the stations.
2. When appropriate, place answer keys at the stations so that students can self-assess.
3. Consider incorporating an engaging anchor activity. Students carry these with them from station to station and work on these during any free time.
4. Plan furniture arrangement and travel routes to expedite stations.
5. Have materials already on tables ready to go.
6. Utilize a timer, and announce when they have about a minute left, to “Pack up the station, and get ready to move!”

There is no doubt that to start, using learning stations will be a labor intensive process for you the lecturer. Once you have your basic first lesson planned though, it is easier to plan further sessions based on this principle. I use learning stations to teach referencing systems and the dangers of plagiarism. My students appreciate the fact that they are not simply sitting and being talked at about a subject that at its very best can be described as challenging and I appreciate the fact that my students are actually engaging with the concepts and techniques and not merely playing around on their cellphones.

Reference:
Rollins, S.P. (23 March 2017). Three questions to guide teaching through learning stations. Available at: https://www.teachthought.com/pedagogy/3-questions-to-guide-teaching-through-learning-stations/

By: Prof. A M Sakkthivel, Skyline University College

Post millennium witnessed numerous disruptions in the way of doing businesses such as emergence of internet, online business, online banking, digital currency, driverless automobiles, free information to all, and many more. Such disruptions leading to creation of several new ventures focusing on creating products and/or services of disruptive nature such as UBER, AirBNB, Facebook, Tesla, Google Glass, YouTube, Instagram, and WhatsApp to name a few.  Some of them went on a rampage mode of expansion and few of them stopped abruptly. However, the momentum of disruption began which paved a way to creation of new era of disruption. Such a new phenomenon motivated companies to rethink their way of doing businesses and targeting consumers. Needless to say the role of marketing in running a successful business. Therefore, marketing in era of disruption required an innovative and disruptive approach to tackle competition and targeting consumers. Marketing managers need to rethink ways of approaches and strategies done traditionally and develop new disruptive marketing strategies to create a new market space which ensures a protection from competitors or identify a new market space which does not attract competition. Such a disruptive thinking is required to succeed in the era of disruption.   

Companies have moved from traditional P’s of marketing to newer P’s and C’s. Ever mounting competition forced marketing managers to add new P’s in their marketing arsenal such as Positioning, Payment Procedures, Promise, and People (Consumers). They also converted traditional P’s into C’s such as Product becomes customer solutions, price becomes cost of acquiring consumers/customer individual profit, place becomes convenience and promotion becomes communications. Such conversions changed the orientation of companies doing business through selling products/services into creating and delivery value to target consumers. It is a major shift from companies focus on doing business through reaching and wooing target consumers through positioning a product/service through Unique Selling Proposition (USP) into offering Unique Value Proposition (UVP) i.e. aligning and matching company’s USP with target consumers’ expectations. Top universities in UAE and MBA universities in Dubai offer state of the art IT and Management and MBA Marketing programmes understanding recent requirements of students, thus offering courses involving latest technologies and tools such as Marketing analytics, Online Marketing, Digital Marketing, Enterprise Computing, Big Data Analytics, Robotics etc.

The era of disruption requires massive use of technologies in targeting, reaching and ensuring the sales among target consumers. Thus, heavily using technologies to achieve such goals such as taking business to wherever the consumers are (TESCO Korea launched virtual stores at Metro stations enabled waiting time of consumers into shopping time, thus increased its business and connection with target consumers), ensuring reach, recall and sales by using ONE GO technology (Donkin Donuts Korea used Flavor radio advertisement spreading coffee flavor through radio advertisements MRTS (Mass Rapid Transportation System) enabled target consumers recall Donkin Donuts coffee, thus increasing its sales on coffee), know target consumers before entering stores using facial recognition technology (X stores would know the entry and existence of target consumers, thus could offer customerised offers  based on such consumers purchase history, motivating them to buy products which they have not before). Such use of technologies marked the arrival of the era of disruption and setting such trends would continue in the future. It is imperative that technologies would rule the future of the world, needless to say, their intervention and impact over businesses, specifically marketing strategies and practices. Therefore, it is up to marketing managers to embrace new age practices including such aspects into marketing strategies to survive and succeed in the era of disruption.

Written by: Abdula Ali Elabed

Financial statement lending places most of its emphasis on evaluating the information from the firm's financial statements (balance sheet and income statement). Financial statement lending information is often hard data and it’s a type of transaction-based lending.

The terms of the loan contract and decision to lend are principally based on the strength of the balance sheet and income statements. Financial statement lending is best suited for relatively transparent firms with certified audited financial statements. Thus, it is likely the technology of choice in bank lending to large firms. However, some small firms with long histories, relatively transparent businesses and strong audited financial statements also qualify for the financial statement lending.

Lenders rely on financial statements to obtain critical information about the financial health and risks of businesses. The average lenders don’t have ongoing inside access to the day-to-day operations of a company. Instead, they rely on the financial statements to provide accurate, readily comparable information, and observe the profitability and value of a business. A lender can review the financial statements to assess liquidity, cash flow, leverage and overall solvency.

Asset-based lending:
Asset-based lending is a type of lending where the collateral is generally the account receivables and inventory. Asset-based lending information is often hard data and it’s a type of transaction-based lending. The credit decisions are principally based on the quality of the available collateral. This type of lending requires that the bank intensively to monitor the turnover of these assets. It is available to small firms of any size, but requires that the firm have high-quality inventory and receivables available to pledge as collateral.

When this type of lending is referred to as fixed-asset lending, the main data are estimated values of the real estate, motor vehicles, or equipment leased or pledged as a collateral. Fixed asset lending is quite cheap for the bank since it doesn’t involve any continuous monitoring activity and only requires an evaluation of the pledge assets when the loan is provided. Hence that it is very monitoring-intensive and relatively expensive for the bank.

The most important benefit that the company gets from using asset-based financing is improved liquidity. The facility can provide financial stability and predictable cash flow when it used correctly. This can help to stabilize operations for companies that are growing rapidly, have seasonal revenues, or have tight cash flows. Also, it is easier to get than loans and lines of credit, more flexible than other types of financing, and it can be obtained quickly (The application and underwriting process is much faster than qualifying for a conventional loan or line of credit).
In addition, it has fewer covenants than conventional lines of credit, can be used as a stepping-stone to other products, and have lower costs than comparable solutions, such as factoring. On the other hand, it’s have costs. In the asset-based lending, the lender gets to seize the assets in the event of failure of repayment, and the high rate of interest on the assets which lead to the limit of lending to be lower in this approach. Also, it requires a lot of monitoring and auditing, and it has many appraisal costs and the up-front legal costs of this system are high.

Written by: Mohammad Ali Elabed & Abdullah Ali Elabed

Lending technologies can be distinguished based on many different dimensions such as structure of the loan contracts, screening and underwriting policies or procedures, monitoring strategies and mechanisms, and the primary source of information. These technologies are deployed to address the types of problems that can lead to either over lending or credit rationing. The changes in the economic environment in which banks and small businesses operate have heightened concern about the availability of credit to the small businesses. Part of this concern reflects the fact that the small businesses are often informationally opaque and have far fewer alternatives to external finance than large companies. Also, many small businesses are highly dependent on banks for external finance.

There are two main types of lending technologies that are distinguished by the type of information that the banks use in monstering and granting the loan. These lending technologies are used to finance small- and medium-sized enterprises (SMEs).

The first type is the Transaction-based lending technologies which are primarily based on borrowers’ hard quantitative information, like the strength of the financial statement or the value of their assets, which are relatively easily available at the time of loan origination, easily to document them, and transfer. It may come in a different forms, including financial statement lending, small business credit scoring, factoring, asset-based lending, equipment lending, real estate-based lending, and leasing. It is better suited for relatively transparent small businesses and it focuses on one transaction with a customer, or many repetitive and standardized transactions with various customers.  Lending decisions are made after borrowers go through a formally structured application process where they are required to meet certain requirements like providing specific financial information in order to qualify for a loan. The transaction-based lending or arms-length lending can be more cost-effective and also allows larger and non-local banks to lend to SMEs.

The second type is the relationship lending which is extended primarily based on borrowers’ soft qualitative information, such as the entrepreneurs’ characteristics that include skill and integrity, which are not easy to verify. As the soft information is accumulated through close bank-borrower relationships, broad and long banking relationships should accompany the relationship lending so they need to be located close to their borrowers which enables the loan officers to personally contact their borrowers at a lower cost.

The relationship lending was better suited for more opaque small businesses. Traditional literature emphasizes that the use of the relationship lending methodology when dealing with SMEs because these firms are considered informational opaque and lack collateral.

Relationship lending is one of the most important technologies that employed by banks in extending credit to informationally opaque small businesses. The process of relationship lending is not well understood. However, a clear understanding of how the relationship lending technology work, and how the organizational structure of the bank affects their ability to deliver this service that are needed to assess how recent changes in the economic environment are likely to affect the availability of the credit to the small businesses.

Key Words: Lending technologies, SMEs, Small Businesses, Relationship lending, Transaction based lending

Shopping is an indispensable part of the ilgrimage. Religious tourists buy myriad range of merchandise at religious destinations for their survival, religious or social needs. A lot of shopping is by the virtue of traditions.

Retailers across the world have capitalized on the opportunities of marketing their merchandise to pilgrims using all the possible techniques since time immemorial. It is difficult to trace the definitive history of retailing at religious destinations, and we get some ideas through the old pieces of literature and religious treatises. We can say that even thousands of years ago, people used to shop for items for their survival at these religious places, and they also used to buy memorabilia, and many other products of religious significance for their relatives and friends. It was the part of their social obligations to bring and distribute the items of religious significance to the members of their family and society. The merchandise included various edibles, photographs, replicas, statues and so on.
The merchandise these religious tourists purchased to carry them back to their homes differed a lot according to their faiths, culture, distances and various demographic variables. Pilgrims shop religious items to adorn their homes and offices or to gift these items to their relatives & friends in future. Religious items can serve as visual reminders of spiritual beliefs as well as inspire people and give them comfort in times of trouble. With changing times, modes of transportations changed, new religious destinations emerged, social practices changed and so a lot of changes happened in the merchandise in demand, and the ways these merchandise were retailed.

In the modern era, when first time in the human history we have the facilities virtual pilgrimage and live telecast from religious centers, the enthusiasm among the worshippers and other types of tourists has not dampened at all, rather the number of people visiting the religious destinations and the frequency of visits are continuously increasing worldwide. The modern transportation infrastructure and related facilities facilitate the rapid movement of larger volume of merchandise of any size and features. To boot, the new means of promotion help in attracting the shoppers to the stores in larger number.
The retailing at pilgrim centers may not be sophisticated and high end as airport retailing, but the number of stores and volume of trade is much higher. The pilgrim retail is still largely unorganized, and we do not have many international retail chains catering the shoppers at these religious places. There are large number of small shops, and the retailing practices are still traditional.We rarely find salespeople in uniform talking in sophisticated language, and the use of plastic money is still limited. Although, some modernization is visible in a few high end hotels at these religious places, but these hotels cater to a very small proportion of religious tourists.

All these facts hint toward the huge opportunity of modernizing the retailing at pilgrim centers, which can result in better economies of scale, better merchandises, improved services and enhanced customer satisfaction. The modernization will be beneficial for all the stakeholders including retailers’ religious tourists and others. It may even help in increasing the number of tourists to these religious places, because it will bring the tourists hooked to modern retail practices in larger number and for longer durations.
Now, students have lot of options for a better career in marketing. They can pursue MBA in UAE. MBA Marketing opens up doors to a large number of career opportunities across the world. They can also opt for diploma in tourism from various universities like skyline to have promising career in tourism.

By: Umer Mehmood Dadu

In everyday life, a person does many things like managing home, family, work, shopping, saving pocket money, purchasing vegetables, managing social life, and many more. If one observes keenly, unknowingly, in all these activities, a person actually manages many things in the daily life. Activities like money management, saving, expenditure, things to purchase, giving priority to immediate activities, and postponing the unimportant things are all part of life. At the time of shopping or purchasing items, importance is given to the quality of product as well as its features. In summary, all these activities can simply be called as ‘Management.’ There is a perfect correlation between the management thoughts and theories proposed by famous management gurus in our lives.

F.Y.Taylor defines management as “the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.” This definition is highly apt for our personal lives too.

To increase the efficiency in organizations, the management is used in a broader prospective. The main objective of all organizations is to earn profit and be responsible to the stakeholders. Similarly, in one’s personal life, we manage money, price, quantity, quality, budget to get a quality product for a low price. Organizations also manage money, plan for their budgets and expenditure, procure raw material economically, manage people, and manage the organizational processes to achieve targeted productivity. In all these management activities, various functions of management like Planning, Organizing, Directing, Controlling, Staffing, Leading and Motivating are involved. These activities belong to several departments like Marketing, Finance, HR, Business Strategy, Operations Management, IT and Systems among others. Management is a dynamic process and whether organizations or human beings, it is essential to adapt the management strategies to the ever changing external environment. Organizations and people do constantly interact with the external environment and change their management styles as per the requirement.

For example, due to the introduction of the VAT (Value Added Tax) in UAE, organizations have to immediately make lot of modifications to their cost structure, profit margins and competitive strategies to sustain the business. Similarly, the citizens of UAE also need to modify their daily lives and habits by looking at their spending patterns and tune them to VAT. In organizations, every activity or process are inter-related and mutually dependent on one another. For example, production depends on market demand, market demand depends on economy and spending habits of individuals, and customer behavior. Requirement of manpower depends on production capacity and in turn production capacity and manpower planning depends on the availability of budget. Thus, management process is a highly dynamic one.

Management can be compared with the clutch, accelerator, break and steering of a car which control the entire movement of the car. Similarly, in a personal life, individuals apply all these parts of a car to their lifestyle by using one or the other part, whenever and wherever it is required to manage according to the ever changing dynamics of external environment. Thus, all the human beings perform several management activities in their everyday life unknowingly.

Human beings can manage their personal lives by learning management skills, like organizations train their employees to learn the management skills. This requires a formal management education in some reputed Business School. Undergraduate and Post-graduate programmes like BBA and MBA programmes in various disciplines of management i.e., Marketing, Finance, HR, Operations, Business Strategy, International Business, Information Systems will develop these management skills with specific emphasis on these disciplines.

Satoshi Nakamoto is believed to have founded the first crypto currency Bitcoin, in the year 2004. No one knows the whereabouts of Mr. Satoshi so far. The reasons are clear. Now we find more than 1,000 crypto currencies in the world financial market although unregulated.  When this article is being published, the Bitcoin was traded in the CEX 10 (Bitcoin exchange) for $ 6,000.

The most important feature of these crypto currencies is that the transactions are completed without intermediaries. No banking or non-banking financial institution is involved. All transactions are settled faster without any hindrances whatsoever. The parties to the transactions need not reveal their names and need not pay any transfer fees or transaction cost. These are the two reasons which have given rise to the discovery, evolution and growth of the crypt currencies.

The success of any business depends on the model or the mantras. The mantra followed Need and speed and the Blue Ocean technology: the need of the investors or businesses is to settle the transactions smarter and faster and this is found in crypto currencies including Bitcoin. There was no transfer of funds by without involving banks but crypto currencies there are no intermediaries for the transfer of funds. The names of the parties are not revealed. Crypto currencies have entered an unregulated market using cloud computing which has no competitors.

The ledger accounts of the investors and customers in these crypto currencies transactions are maintained by miners (accountants) by using high speed processing computers. These miners have a huge reward for solving a puzzle in every transaction of the Bit coin.

The Bitcoins are stored in Digital wallet, which can be found in cloud or on the users’ computers. This wallet is nothing but the bank account of the individuals who transact in the crypto currencies.  The users of this Digital wallet can buy even a Pizza or anything using their public keys and private keys which are allotted to the users.

Small businesses generally prefer this system as no credit cards are required for the processing of the transactions.

The growth of Bitcoin from $ 1 to the $ 6,000 + or – is attributed to the Silk Road (on line black market) which needed a currency that could clear transactions without using banks. Even the closing of the borders of countries for legitimate business for various, has paved the way for business in these countries.

Calculation of the price of Bitcoin is done by CEX 10 (bit coin exchange) on the basis of the trade of the transactions. It has 100 million dollars market capitalization. Some of the international banks are trying to be a party of this block chain technology, which has a definite amount like the capital of the banks.

To invest one need not pay $ 6,000 dollars to buy one Bitcoin?  You can buy even a fraction of that provided the country you live in, allows such transactions.

Future of Bitcoin: In spite of the unprecedented growth of the Bitcoin, it can’t be stated that, one should invest or transact though the Bitcoin as many governments have not supported it although some of them did support. The governments of various countries including the UAE, have not appreciated this technology as it might encourage illegal transfer of money for illegal activities

Investing in Bitcoin is like betting a T-20 Cricket International match. Anyone can win right? The theory of risk and rewards applies to this technology as much as it applies in the regulated markets.

To grow is a basic human instinct. Civilizations across the globe and across the time have celebrated growth and people responsible for growth have always been admired and respected and others have been advised to get inspired by these examples. Nations from every corner of the world have made policies, provided incentives and have taken steps to facilitate growth and development in economic terms. In the past environmental issues were not crucial as number of people on the planet and the amount of natural resources used by them were comparatively. The accelerated development of technology, growing human population, and exponentially growing usage of resources and consequent wastage have brought the environmental concern on the forfront.The inventions of non-biodegradable materials,deforestation,pollution of various kinds created by machines and automobiles have made the sustenance of this growth pattern questionable. The use of a new pesticide can have harmful impact on food products and soil, and the long run damage caused by it can be much more than short term benefits. Various new drugs and medicines can cause severe damage to human organs in the long run. The growing industrialization and usage of automobiles may pollute the environment ultimately resulting into a series of diseases and untimely deaths of human beings. Various industrial accidents like Bhopal Gas tragedy are hard to forget for any civilized human being. The fear of rising temperature and meltdown of glaciers, damages to ozone layer, depleting drinking water, vanishing animal and plant species can put the entire civilization’s existence at risk. Hence, there is a need of tackling these issues with conviction. The real concerns for environmental hazards started getting voiced at national and international forums in the second half of the twentieth century. Various protocols and summits like Kyoto, Montreal and the latest Copenhagen summit etc. are evidences of growing concern across the globe regarding environmental issues. People from every country have started thinking and working for sustainable development. A real development is the development which can be sustained for a long term. We can’t afford to ignore the issues related to environment, if we want to hand over a beautiful earth and prosperous future potential to future generations. We must look at the both sides of effects related to usage of new inventions and adoption of new processes. Our experiences with legislations and summits have taught us the hard way that a lot more needs to be done. The issue of sustainable development or growth with environmental protection may be ensured with following for steps: 1) Creating awareness through media and education-No universal problem can be solved without creating awareness about it to all. For this, environmental study should be made the compulsory part of education at all levels in all streams. It should be given the same importance what we give to the education of languages, technology, mathematics and general awareness. Secondly, the power of all types of media including print, electronic, internet, campaigns should be harnessed to the maximum to make people know about the environmental impact of their consumption or activities, and their probable consequences. 2) Making uncompromisable legislations- Although we have various legislations related to protection of wildlife, forest etc. and there are government institutions and ministries to look after environment, but it’s obviously not sufficient. There is a need to enact legislations which make intentional damages caused to environment as serious as causing damages to human lives or sovereign nations. We must realize that if environment does not sustain then nothing will. People with power and contacts should not be allowed to remain unpunished if they have committed crimes against environment. 3) Emphasizing research on environmental protection-In order to ensure growth without environmental hazards, researches related to it must be given due priority. We spend billions of rupees on researches related to industries, defense, health etc., but environmental researches still do not attract best talents or substantial resources. There is a need to promote environmental researches with the cooperation of both governments and private sector at every possible level.Universities, institutes and research agencies must work in this direction in every related discipline area. There is also a need to facilitate environmental researches at local levels to find alternative ways of production and consumption which are environment friendly. 4) Balancing the distribution of Income-One of the major causes of environmental hazards is the fact of people in large number struggling for survival every day in the different parts of the world. An individual, who is not sure of his next meal, can’t be sensitive to possible problems in future years or hardships to next generation. For him survival at any cost is the fact of life. No campaign or legislation can stop a starving individual to cause environmental damage. This is evident in damages caused to forest in areas full of poor people and a large number pf poverty stricken employees working for dangerous and environment damaging occupations. Hence, enough honest efforts must be made to create a reasonable balance in the distribution of income. The poverty of masses also makes the economic growth unsustainable in many ways including sustainability in environmental terms. In order to ensure the growth with safe environment these points should be considered by policymakers and general public at large. Human beings survive on hope of better future, and without protecting environment we lose the hope of bright future. It’s the case of saving our hope and our environment. Skyline University College is among the top educational institutes in Sharjah and it continues working for sustainability and environmental protection through the community service activities and training to students. SUC is among the best options for BBA in Sharjah. It has also started BBA in public administration to prepare a students for administrative responsibilities.