Global financial market - Free Essay Example

Sample details Pages: 11 Words: 3396 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? INTRODUCTION:- MONEY MARKET:- Money market is the global financial market for short-term borrowing and lending and provides short term liquid funding for the global financial system. The average amount of time that companies borrow money in a money market is about 13 months or lower. Some of the more common types of things used in the money market are certificates of deposits, bankers acceptance, repurchase agreements and commercial paper to name a few. Basically what the money market consists of is banks that borrow and lend to each other, but other types of finance companies are involved in the money market. What usually happens is the finance companies fund themselves by issuing large amounts of asset backed commercial paper that is secured by the promise of eligible assets into an asset backed commercial paper conduit. Your most common examples of these are auto loans, mortgage loans, and credit card receivables. Don’t waste time! Our writers will create an original "Global financial market" essay for you Create order There are different instruments in the money market which offering different returns and different risks are given following:- Treasury Bills (T-Bills) Certificate Of Deposit (CD) Bankers Acceptance CAPITAL MARKET:- Capital market is a type of financial market, it includes the stocks and bonds market as well. But in general the capital market is the market for securities where either companies or the government can raise long term funds. One way that the companies or the government raise these long term funds is through issuing bonds, which is where a person buys the bond for a set price and allows the government or company to borrow their money for a certain time period but they are promised a higher return for allowing them to borrow the money, the higher return is paid through interest that accrues on the money that the government or company borrows. Another way that the companies or government can raise money in the capital market is through the stock market, most of the time you dont see the government as a part of the stock market, but it can actually happen so we need to include them. But how the stock market works is that the companies decide to sell shares of their stock, which is basically ownership in the company, to ordinary people and other companies, as a way to raise money. The people who buy the stock are usually given dividends each year, if the company has agreed to pay out dividends, so that is another possible return on their investment. The capital market actually consists of two markets: Primary market secondary market Primary market is where new issues are distributed to investors, and the secondary market where existing securities are traded. Both of these markets are regulated so that fraud does not occur and in the United States the U.S. Securities and Exchange Commission is in charge of regulating the capital market. The different types of financial instruments that are traded inthe capitalmarkets are equity instruments credit market instruments insurance instruments foreign exchange instruments hybrid instruments derivative instruments DIFFERENCE BETWEEN MONEY MARKET AND CAPITAL MARKET:- Basically the difference between the capital markets and money markets is that capital markets are for long term investments, companies are selling stocks and bonds in order to borrow money from their investors to improve their company or to purchase assets. Whereas money markets are more of a short term borrowing or lending market where banks borrow and lend between each other, as well as finance companies and everything that is borrowed is usually paid back within thirteen months. Another difference between the two markets is what is being used to do the borrowing or lending. In the capital markets the most common thing used is stocks and bonds, whereas with the money markets the most common things used are commercial paper and certificates of deposits. SIGNIFICANCE OF CAPITAL MARKET MONEY MARKET WITH EXAMPLES:- The capital market plays a pivotal role in a market system. It is the financial system that facilitates the flow of funds between buyers and sellers in the various markets, it allows the plumber, teacher, and banker to specialize in what they do best and for society to minimize the resources devoted to the transactions that must accompany any specialization. A financial system also stimulates borrowing and saving. A key to economic growth is investment spending on new machines and factories. For our plumber and carpenter, this meant better tools, and anyone who has done plumbing and carpentry knows the time savings of better tools. But where would we find the funds to purchase the tools? From the recycling of the savings of others. If it was not for the savings, the surplus of production above that earmarked for consumption, there would be no way to find the resources necessary for spending on machinery which produces no direct, immediate benefit to the consumer. It is no surprise that the former Eastern European countries attempted to develop capital markets as they struggled with their conversion from command systems to market systems. If they were to establish an array of markets in the real sector for the exchange of goods and services, they would need to establish the financial markets needed to provide the money for these transactions. The capital market functions as the set of pumps and hoses that delivers the oil where it is needed, to the markets. Firms come to the capital market to finance their investment projects and to invest their surplus funds; households use the capital market when they borrow money to buy a home or a car and when they invest their surplus funds in savings accounts, stocks, bonds, mutual funds, life insurance policies, or pensions for later use; the government goes to the capital market every time that it needs to borrow to finance its deficit; and foreigners come to borrow money or invest it. When the oil stops, we know the consequences. The economic engine that generates jobs and goods seizes up. In the US, the most notable seizure by far would be the stock market crash of 1929, the opening event of the Great Depression of the 1930s. In the aftermath of the crash, the nations banks took holidays and shut their doors and the money needed to keep the engine running smoothly disappeared. We may recall the scene from the Jimmie Stewart movie that plays each Christmas season Its a Good Life when the Baileys Building and Loan (a bank) is threatened by a rush of people looking to get their money out. Imagine if employers could not get the money to pay wages and salaries. People would not be able to pay their mortgages and car payments, they would be unable to purchase food at the supermarket or clothes at the mall. It would not be long before the workers who produced the food, the clothes, and autos would find themselves out of work. By the time we were done we would find massi ve unemployment in the labor market and idle factories and offices in the output market. In the US at the height of the Depression, unemployment peaked at 25 percent of the labor force. The oil keeps flowing the government has heavily regulated the capital market, in part because of the widespread perception among policy makers that the capital market shock was the cause of the Depression. The agency primarily responsible for regulating the capital market is the Federal Reserve (FED), the central bank of the US. Since its inception in 1914, the FED has exerted considerable influence over the workings of the capital market, both indirectly by establishing the rules governing the behavior of the major financial institutions operating in this market, and directly by controlling the nations money supply. The Fed is the monetary authority in the US and the agency responsible for the conduct of monetary policy, something we will discuss at length in our later discussion of macro policy. Money market which is an essential segment of the financial markets generally refers to borrowing and lending for periods of a year or less. The need for a money market arises from the fact that receipts available to businesses, governments and all other economic agents do not coincide with expenditures. PRESENT SCENARIO CAPITAL MONEY MARKET :- The current condition of Indian markets have drastically improved. There is absolute transparency and instant transactions. All Indian Stock markets are now computerized andInternetTradinghas become a common phenomenon. Indian stock markets have also developed a dynamic nature and can change from a bullish temperament to a bearish slide. Any small bit of information or even a rumour from any part of the country can affect the market and is a fairly accurate indicator of the prevalent atmosphere in the region or country. People from across the country and globe get in touch with minute wise readings on the stock market and gain a lot of trading aptitude after daily seeingBSE Stock GainersorBSE top loserslist which does a world of good to theirinvestmentportfolio. Fixed Income Market scenario: Short-term money market yields continued to trend lower due to excess liquidity pressure. 3 month CD rates dropped by 75 bp from 4% to 3.25% over the month of June and are currently at 3%. Indias benchmark wholesale price index (WPI) declined to negative 1.30% for the week ending June 20, recording a fall for three consecutive weeks. The decline in inflation could be largely attributed to high base effect as WPI stood at 11.91% in the corresponding week of the last year. The bond market seems to have shrugged off the initial impact of the petrol and the diesel price hikes. The 10% (app.) hike in the petroleum prices should push up the inflation by about 75-100 bp over a period of time. Currently, we expect the WPI inflation to be in subzero levels for a period of 2-3 months. This is purely due to high base effect of last year. Post the petroleum price hike the WPI index will now move up faster than previously expected, but not as fast as to create worries of inflation within the system before the calendar year end. More recently, following the budget, the bond market was shocked to discover the huge excess borrowing of Rs.90,000 crore. The yields are currently re-aligning to the negative news. However, the views of international rating agencies are also critical given the sharp hike in fiscal deficit to 6.8% from the interim budgets estimate of 5.5% The market presently runs a lower risk of negative surprise as the budgeted tax receipts are realistic except for the corporate tax collections. However, the non-tax receipts as per the budgeted estimates of 2009-10 run the uncertainty of the 3G spectrum auction timelines. CURRENT STATE OF THE MARKETS FROM 2005-08:- Investor sentiment is largely bearish across many measures, which typically is a positive forward indicator for the market. Discerning investors that buy select securities when everyone else is selling, tend to make outsized returns over the long run. Decembers reading showed less than 1/4th of those surveyed did NOT expect a market crash in the next 6 months. The American Association of Individual Investors sentiment survey showed bearish sentiment at 54% in its December 31st reading, similarly at relative bearish levels. On the other hand, in the number of bulls increased in December according to the Investor Intelligence survey, which does not show the complete capitulation that we may have preferred to see. In fact, the pervasive stealth bull market that we start the new year with indicates investors remain too eager too us. The closing of these valuation gaps represent capital being put to work and addressing market inefficiencies. The equity markets have seen similar rallies off their November and December lows. Of particular note is the 25.5% gain in the Russell 2000 index of small cap companies from November 20th through to the end of the year versus a 17.3% rally in the SP 500, a relative outperformance of 47%. The rally has been broad with 90% of the constituents of the Russell 2000 seeing their equity prices appreciate. 30% of have seen their stock prices rise in excess of 50%. It indicates a relative return of reason and the beginning of, if not gradual, increase in risk appetite from the September to December time frame. We remain acutely aware of the risks for negative feedback into the financial markets from the precipitous decline in economic activity but believe most of the downside is priced in already. Its shown in graph which is given below:- LITERATURE REVIEW:- Are Investors Ready for Higher Interest Rates? If the economy keeps growing, it hastens the day when the Federal Reserve ends the era of 0% interest rateClick here to find out more!. TheU.S. economyis growing again has renewed the debate about where interest rates are headed with big implications for both the economy and investors. The U.S. gross domestic product report showed that the economy grew by 3.5% last quarter, a higher percentage than many were expecting, and fixed-income markets took it as a sign that a rate increase will happen sooner. Treasury prices fell after the release of the GDP figure, and the yield on 10-year U.S. Treasuries rose 0.08 points to 3.5%. A historically low rate which is reflecting the fact that the Federal Reserveis holding the short-term federal funds rate near zero in order to stimulate the economy. Its the reason why yields on bank savings and money market accounts are so paltry. Global equity fund flows turn negative: EPFR Global fund flows intoequitiesfell in the week ended as policymakers shifted focus to unwinding stimulus measures, while unemployment continued to rise, making investors question what will drive economic growth. Outflows from equity funds totalled $5.42 billion and outflows from all emerging market equity funds were at an 11-week high. Fixed-income funds drew net inflows of $3.63 billion. Only six of 24 major global funds and fixed-income fund groups tracked by EPFR Global registered inflows, despite additional liquidity resulting from another week of heavy outflows frommoneymarketfunds. Global bond funds drew fresh money for a 30th week. US bond funds remained attractive, absorbing $2.1 billion, and short-term debt funds led the way. Outflows from money market funds rebounded to $27.3 billion for the week. Govt parks Rs 61k cr of idle money with RBI The government is bearing a portion of the cost of liquidity management by paying interest on money it does not need. The central government has been regularly borrowing from the market through bond issues to fund its huge fiscal deficit. The bond issues are timed to meet cash requirements of the government. Instead of spending the money, the government has parked Rs 61,343 crore of idle money in its account with the Reserve Bank of India (RBI). The idle money with RBI rose from Rs 12,837 crore in June 2009 to Rs 80,775 crore by end-September. 2009 a challenging year for U.S. venture capital market The year 2009 has been a very challenging year for venture capital sector in the United States, and analysts are expecting a recovery for the market next year with more investment going to companies doing real business. In the gloomy market, some U.S. venture-backed companies is still successfully in securing big deals.The biggest deal in 2009 belongs to social networking website Face book, which raised 200 million dollars from Russias Digital Sky Technologies.The latest example is Exact Target, a marketing e-mail software provider which recently raised another 75 million dollars, bringing the startups total funding this year alone to 145 million dollars, technology blog Tech Crunch.2010 as a year when the U.S. venture capital market recovers and e-commerce companies do well. Managing inflation expectations smartly The need to manage inflation expectations as proposed by the State Council, the countrys cabinet, suggests that the decision-makers have developed a forward view on the risks of potential inflation, which is a timely and helpful move. To manage inflation expectations, the government should regulate the controllable factors in advance and appropriately guide market views on the trend of these factors, including expectations on domestic monetary policy (especially money supply growth and real interest rate), fiscal policy, the governments intervention in the stock and housing markets, land supply and policies affecting global liquidity conditions. First, the current year-on-year growth rate of M2 surpassed nominal GDP growth rate in the first three quarters by 23 percentage points and credit growth, by 27 percentage points, signaling excessive liquidity. The credibility of monetary policy should be improved. The 17 percent growth rate of M2 declared has been exceeded substantially because of the approval of overfull government-dominated projects and the acceleration in project implementation. In 2010, if government policies are not coordinated effectively and the growth targets for money and credit are once again not adhered to, then monetary policy will lose credibility and inflation expectations may worsen. SEBI eases norms for raising funds from bond market Capitalmarketregulator Securities and Exchange Board of India (SEBI) eased norms for security or the asset cover, required for issuing secured bonds. SEBI said that issuers will have to maintain a 100% asset cover that is sufficient to discharge the principal amount at all times for their debt securities offerings. The charge was created on a portion of assets and the rest was secured by way of negative. SEBI has also enhanced disclosures toinvestorsby issuers. Issuers will also have to deposit 1% of the issue proceeds with the exchange till all the investor complaints are disbursed off. Scope of study This proposed study will help to find the future of money market and capital market. These both are very essential factors for our Indian economy. Research Methodology Research Method is a way of doing something and methodology is a set of methods used in a particular area of activity. The research methodology employed in the research is as given by Philip Kotler. Developing the problems and research objective Developing the information sources. Collecting and analyzing the information Presenting the information Research Design Research Design is a series of advanced decisions that taken together comprise a model for the conduct of an investigation. So research design provides a framework of plan for study, which guides the collection, measurement, analysis, and interpretation of the data. The research carried out here is descriptive in nature. Descriptive research provides data about the population or universe being studied. It can describe 5 Ws, 1H i.e. what, when, why, who, where, and how. Method of Data Collection The next step of research methodology is data collection. It can be done through primary or secondary techniques. In this study secondary techniques is used to collect the data. For secondary data I have referred journals, magazines and Internet. CONCLUSION:- Money market capital markets are a critical component for any developed economy.Today Indian capital markets are amongst the best regulated markets in the regulatory framework with the significant growth in the securities markets. The story of Indian capital market reveals an efficient trading and settlement infrastructure, high levels of disclosure and fostering an environment of innovation. In this back drop it is seen that a new trend of corporate financing is gaining ground. The sale of Foreign Currency Convertible Bonds by domestic companies and banks has surged over the last couple of years. Thus, some articles in this study seeks to examine some fundamental concepts related to Foreign Currency Convertible Bonds, its nature, regulatory mechanism, tax treatment, advantages and disadvantages. it is concluded that Foreign Currency Convertible Bonds can be advantageous only in a booming market and cannot be the buzzword in a bearish market, which the Indian markets did experience a little while back. In a bearish market, listed companies may resort to Qualified Institutional Placements that have been introduced by SEBI guidelines. Indian Stock Markets can be a very rewarding avenue of investment but the constant changes and the inherent dynamic nature of the markets can wipe out our funds or savings within a minute. Dont always rely on the daily list of BSE top gainers or BSE top losers as it only takes a minute to get the things changed here. Keeping ones eyes and ears open can theinsurethe investor against any major losses. Hence, it is a way to turn our savings into a fortune. REFERENCES:- www.capitaline.com www.investopedia.com www.articlesbase.com www.business.mapsofindia.com https://linguistics.byu.edu/faculty/henrichsenl/apa/apa01.html www.sbidfhi.com www.improvingyourworld.com https://www.uri.edu/artsci/newecn/Classes/Art/INT1/Mac/Measure/Cap/Capital1.htm www.businessweek.com Finance India and Journal of Finace.

The Iliad of Homer Essay - 711 Words

When analyzing the Greek work the Iliad, Homer procures an idealistic hero with an internal conflict, which questions the values of his society and the Greek Heroic Code. The Greek Heroic Code includes respect, honor, and requirements to procure an exorbitant image. To be considered a Greek hero you must meet the perquisites and fulfill all of the aspects of the code. Achilleus was deemed a hero, he was the strongest and swiftest of the Achieans. Achilleus lived up to all of these aspects until his internal conflict began in the Iliad. Homers purpose in the ending of book XXIV is to restore Achilleus after his reconciliation with the Greek Heroic Code. nbsp;nbsp;nbsp;nbsp;nbsp;Achilleus was the most honorable Greek warrior of his†¦show more content†¦Achilleus harshly considers his options when the point arises Now did not Hektor burn thigh pieces of oxen and unblemished goats in your honor;(from the Iliad Book XXIV). He judged the point and conjured the answer to be affirmative. He respected the fellow mortals views and reasoning on the return of the body of Hektor. His fellow mortals were very grateful in the returning of the body and rejection of the ransom. No longer stir me up, old sir. I myself am minded to give Hektor back to you; (from the Iliad Book XXIV). His fellow peers see this as a respectful gesture and start regaining respect for him. Achilleus viewed this as an important aspect in his plan to regain the desired status of being in the Greek Heroic Code.nbsp;nbsp;nbsp;nbsp;nbsp; nbsp;nbsp;nbsp;nbsp;nbsp;The next episode where Achilleus was recognized for is when he honored the body of Hektor. He ordered his serving-maids to wash the body and anoint it all over; but take it first aside, since otherwise Priam might see his son and in the hearts sorrow not hold his anger at the sightamp;#8230;;; (from the Iliad Book XXIV). They Anointed it with olive oil, they threw a fair great cloak and tunic about him, and Achilleus himself lifted him and laid him on a litter and his friends helped him lift it to the smooth-polished mule wagon; (from the Iliad Book XXIV). This was anShow MoreRelatedThe Iliad By Homer1654 Words   |  7 Pages The Iliad is a collection of poems by Homer describing the 10-year siege on Troy by Greeks in what is now famously referred to as the Trojan War. Several Greek and Trojan characters are worth a special mention in these Homeric poems because of the roles they played in the battles before the war was won, how they conducted themselves to help eventually win the war for their side. This paper specifically investigates the writings in the Homeric poems to look are important in the overall text. TheRead MoreThe Iliad By Homer892 Words   |  4 Pages The Iliad by Homer depicts the great struggle by Agamemnon and the Greeks to take the mighty city state of Troy and return Helen to her rightful husband, Menelaus. While many ponder if the war actually happened, or why the gods always seemed to be more human than humans themselves, few ask the key but often overlooked question; why is Agamemnon the leader of the Greeks in the first place? What happened that put him in charge of the Greek forces? Why does there seem to be an underlying resentmentRead MoreThe Iliad, by Homer980 Words   |  4 Pages The Iliad written by Homer in the days of Ancient Greece has become one of the most epic poems of all time. It is a poem that has been debated for centuries. Within the tale of Achilles and the wrath of war lies a magnificent object that is shortly mentioned in Book 18. The brief section in Book XVIII, lines 505-660, described the shield that Achilles would carry into battle. How ever, it also tells us something about the nature of Achilles and his heroic image full of rage and anger. In orderRead MoreThe Iliad By Homer2007 Words   |  9 PagesThe Iliad is a collection of poems written by Homer describing the 10-year siege of the city of Troy by Greeks in what is now famously known as the Trojan War. Several characters stand out in the series of poems because of the roles they played in the war, how they behaved and the acts they took to help eventually win the war for the Greeks (then known as Akhaians). This paper specifically investigates the writings in Books two, four, thirteen, sixteen and seventeen and why the events in these booksRead MoreThe Iliad, by Homer855 Words   |  4 PagesIn Homers epic Iliad, the poet emphasizes the control of the gods in the war he describes. He creates literary devices around these well-known deities to illustrate their role in the action, conveying to his audience that this war was not just a petty conflict between two men over a woman, but a turbulent, fiery altercation amongst the gods. To an audience which had likely lost their fathers, brothers, or husbands to the Trojan War, it would be a welcome relief to hear that the whole affair wasRead MoreThe Iliad by Homer1383 Words   |  6 Pageswas, in fact, useful. Aristotle agreed with Plato that literature induces undesirable emotions, but he stated that it only does so in an attempt to purge us of these harmful sentiments, a process which he termed â€Å"catharsis†. The events in Homer’s Iliad, while used by both Plato and Aristotle to defend their theories about literature, lend themselves to the defense of Aristotle’s ideas more so than Plato’s. Specifically, the juxtaposition of Achilleus’s intense lamentation with the portrayal of Hephaistos’sRead MoreIliad by Homer1216 Words   |  5 Pagesin Homer’s Iliad, to be a hero is to be â€Å"publicly recognized for ones valour on the battl efield† and to have a prize with it (Sale). In other words, a hero is someone who fights for his own fame and glory. However, the modern perception of a hero is quite different. A hero is someone who do not endeavor to become a hero, but someone who act in admirable ways, often for the better of everyone else. The modern concept of heroism is what defines a true hero. Achilles is a hero in the Iliad, because ofRead MoreThe Iliad By Homer2191 Words   |  9 PagesThe Iliad By Homer was created in the late 5th-early 6th century A.D. This Epic was a best seller, but the publishing date and publisher is unknown, due to the story being so old. The Iliad is around 576 pages long. Some facts that have to do with the Iliad that are not well knows include the name Homer resembling the greek word for â€Å"hostage.† Also, taking place after the events of the Iliad, Aeneas supposedly survives the war and goes on to become the founder of roman culture. Going on to a differentRead MoreThe Iliad Of The Homer s Iliad Essay1475 Words   |  6 PagesThe Iliad ranks as one of the most important and most influential works in terms of world literatures since its establishment. Between the underlying standard to which the Iliad offers us as audience members, along with the plethora of writers that have followed in the footsteps to which Homer’s Iliad paved, the impact that the Iliad has played is remarkable in itself. While the Iliad can be credited for much of present day literature we study today, Hollywood can be created for the plethora ofRead MoreThe Iliad, By Homer1141 Words   |  5 PagesThe Iliad, along with the Odyssey, is one of two epics handed down through the Homeric tradition in the Greek Dark Ages, considered by many to be the Heroic Age. However, the key issue lies with the fact that ancient Greeks define a ‘hero’ very differently from what we would consider a ‘hero’ to be today. In ancient Greece, a hero is any human descended from the gods and bequeathed with superhuman abilities. By this definition, Achilles is immediately classified as a hero, no matter his actions.

Here Free Case Study Solution for Strategic Management Analysis of LUX

Question: Describe about the Strategic Management Analysis of LUX ? Answer: Introduction of the company: Lux is an important FMCG product owned by Hindustan Unilever Limited (HUL). HUL is a 52% owned subsidiary of Anglo Dutch giant Unilever, which was initiated in the year 1888. This company mainly deals with consumer durables operating in the market and manufacturing them. HUL is a Indian based company which is a subsidiary of Unilever. Improving the supply chain, taking initiatives to build the brand with latest innovation is the main focus of the companys prospective. The company aims to maintain its leadership in overall FMCG category in India. Lux soap was first launched in 1916 by Lever Brothers. It was introduced to encourage women wash their clothes without fear of clothes turning yellow. In 1925 bathroom soap were introduced and it was introduced as luxury. In the year 1958 Lux came up with different colour range: pink, blue, yellow, green. Lux also came up with different packaging styles. Today Lux stands as one of Indias trusted care brands. In 2005 Lux came up with some new variants such as Wine and Roses bath cream, sparkling morning shower gels (Hul.co.in, 2015). Some of the prominent variants are Lux fruit, Lux sandalwood, Lux Rose, Lux Almond, Lux Orchid, Lux Chocolate, Lux Oil and Honey Glow etc (Outsiders, 2015) . PESTEL factors of LUX: Political factors: Politically lux is facing a problem on the import of raw materials. Government has banned the import of tallow which is one of the basic requirements for soap. Also there is not so much problem for the ALFRESHSOAP so that it does not create any impact that can affect the product. Also adulteration of Vanaspati was another incidence by unscrupulous manufacture. Also the soap industries in India were under the restriction of raj (Sadler, 2003). Later on there have been more competition between organized and unorganized sector. The political scenario is changing day by day and new entrants are posing on threat by giving concession on tax. Economic Factors: The cost of soaps in India is very high as compared to other countries like Indonesia. This is mainly accompanied by the rise in cost of import duties. The import duty rates have increased from 20% to 35% and the excise rates have also increased at a speed of 16% that forms a major portion of the cost. The average expenditure per user of every household for toilet soap is Rs 237 and Rs 706 for high income groups. Social Factors: The need for hygiene and personal skin care is very important nowadays with the increasing disposable income levels and rise in education. Being a member of the World Trade Organization it is very important to maintain the necessity of skin care and personal affection towards health. Therefore Lux targets the audience to go for Premium Soaps by enhancing the aspiration levels. NGOs towards inefficient PHC- primary health center and fragmented approach of government alleviate the problem. The rate at which advertising medias like cable TV and satellite are growing to give a emphasis to the market penetration initiatives of other competitors in the market. Technological Factors: The industry should focus on technology intensive opportunities rather being a capital intensive industry. The company should focus on manufacturing premium soap comparing with other soaps. The company should also focus in logistics management where distribution and marketing plays a pivotal role. Also the company emphasizes on Electronic Customer Relationship Management (E-CRM) and Supply Chain Management. The company is also trying to cope up with small kirana stores and small retailers. This company should cater to high income group as it is expected to rise by more 100 percent. Environmental factors: Lux was facing a problem of environmental degradation because HUL had fewer resources that could be used and they could produce less waste. Also there was a major development of European emissions which could restrict the amount of polluters that are being emitted in the air and thus Lux could become an eco-friendly product. Legal: Because of their presence in the worldwide they are bound to abide by some rules and regulations by national law. Therefore HUL as a company should make any changes abiding to the changes accordingly. Porters Five Forces for LUX:- Threat of New Entrants- In every company new competitors is constantly entering the market to gain more market share and make their presence across more intense and compete globally. This makes threat of new entrants high in the market. In the last two years there are many companies such as Elf makeup, celebrity branded makeup which have come up into this industry. Because as per economies of scale perfumes and makeup are produced in larger quantities. This is relatively lower in cost per unit. Therefore this is an industry many firms like to open up into. And also very less capital is required and any company cam play a dominant role and become the market leader. Threat of new entry is high because palm oil is imported from Malaysia and it is very expensive in India compared to China and Malaysia. So To launch personal care products there will be more cost involved. Bargaining power of buyers : In this type the customers always look forward to reduce the prices and add services to improve the quality of the product that can affects firms competition. Also in this type the customers have a preference to swich over to other brands and not alwaya stick to any particular product. Which indicates that buying power is always high. But also customers prefer to stock various brands at favourable prices. In rural areas people are not interested to buy high priced products. Bargaining power of Suppliers: This means how much power the supplier side has. The cost of switching to the suppliers is not very high as there are many companies which create their own personal products. They have lesser suppliers because unilever has more than 100 manufacturing units in India ('five forces', 2015) . Threat of Substitute products: This is the fourth force which is very high in this type of industry. If any customer is not satisfied with the quality they can always shift for other brands and go for other substitute products. It may be high priced or low priced depending upon the quality. In this type of Industry threat of substitute is very high. Because for soaps biggest substitute will be facewash and body wash. There is an upward trewnd to use them as it comes from the western culture. Rivalry among existing competitors: There are large numer of firms which are competing each other. In this type there is very little product differentiation existing example the scents smell similar. Conclusion: From the above assignment it is concluded that Lux is one of the iconic products that has entered the Indian market. The history of Lux has been related to women of every generation and thios is one of their mission strategies. The brand Lux have been able to uniquely position itself in the market and launched through the media partners as well. Advertisements includes beautiful photos in pages of women magazines to billboards TV and newspapers as well to actively associate with the market. Lux has successfully transcended the hurdles of elite class epitome and has positioned itself occupying centre stage appealing to women of all ages. Considering the present market share we can say that Lux is a promising brand which is coming to fulfill the needs of customers. The continuity and popularity stands out to be unique able to satisfy human needs satisfactorily and it promises to run across centuries. Recommendations: It can be seen that Lux as a part of HUL is facing tough competition from its competitors. It is trying to retain its market share and achieve high growth and profits in the market. It can be recommended that they can use more marketing strategies such as BCG matrix, check its competitive strategies, go for some SWOT analysis to regain its market share. They must introduce some new products for example they can launch face wash with a fragrance that other companies are yet to launch in the market. This will have a greater impact on their sale. However it should also be noted that the marketing activity should be considered all throughout the year that will add in gaining competitive edge from its competitors in the market globally. References Ansoff, H. (1979).Strategic management. New York: Wiley. Ansoffmatrix.com,. 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