Amazon and eBay

 

 

 

 

Amazon and eBay:

Evaluating e-Commerce Website Behavior

 

1. Do you agree with the evaluations of Professors Reeves and Nass? Why or why not?
   

 

There are several valid reasons as well as criteria on the basis of which the professors have rated the two most successful e-commerce based companies and hence it is very hard to disagree to the consent of this professors. Here according to the case study evaluation has been purely based upon how the customer behaved and their satisfaction level i.e. the performance of both the websites were totally dependent upon the key success factor being used by these website to acquire and retain the customers. Amazon's to be graded "A" according to me is fare as this site is far better and user friendly than its competitor i.e. e-bay that has been graded "D".As from the information provided by the case it is clear that Amazon book-buying site follows a consistent style and tone that has been pleasing the customer as well as this site makes the customer feel that they are dealing with a real sale person. Also the customer database have helped a lot for this site to greet customer on their following visit to the site i.e. welcoming them by their name and also guide them to the different part of the site which instigate a felling of being treated by someone who knows you very well gives a different feeling which also has helped this site to be user friendly.

Also this site focuses on personalization and easy navigational option that has made this site more users friendly and quick. Affordable cost as well as a variety of good for selection has made this site preferable for one who love to buy on line. A detail information about the products including the price and other criteria and features of the product are also included and hence make it easier to for the customer to analyze what amount of money has to invested so as to buy the product. Amazon has also implemented the security software which is tough to be cracked which gives customer a sense of satisfaction which can't be explained in words.

e-Bay on the other hand fails to impart the quantity of intangible benefits to the customer and hence lags behind Amazon in acquiring and retaining customers. One of the example i.e. e-bay does not correct typographical errors which is not good for the customers part during transaction. The confirmation time is also very long which further make this site user un-friendly. The only positive feature when compared to that of Amazon is the bidding option, but again this is for the advantage of organization rather than customers.

 

 

1. How could Amazon improve the experience it offers its e-commerce shoppers? Give several examples.
   

• The menus above, as shown in the illustration would have been easier to access if it were fixed even when customers scrolled down the page.
  

 

 

• Though it sells branded accessories it fails to provide the customers with the similar kind of ambience that they get while visiting the brand's official website. For e.g. when a customer purchases from Amazon, a pair of Nike shoes they don't get to customize the product according to their taste. This is the reason customers prefer to log on to the official website and buy what they want.
  
• Moreover Shoppers don't get the option of whether the clothes they are about to purchase fit them. The store could design a program where buyers can enter their measurements and accordingly the program would come up with a 3D model on which clothes about to be purchased could be tried upon before it reaches the customer's door step.
  

  
   

1. What should eBay do to improve the experience it provides to customers as its auction site? Give several examples.
   

 

According to the research of Byron Reeves and Clifford Nass, websites are not liked and disliked on the basis of design but the behave of site on people's visit. On the researchers evaluation the eBay site has graded D. This grade has been graded on the basis of various short coming of the site found on the research.

Research results indicated some errors on eBay :

• Typographical error and product description reduce credibility
  
• Don't suggest or offer to improve the errors
  
• Impoliteness towards customers
  
• Trade off among picture quality, size and detailed background
  
• Take longer time up to 24 hours to signing up
  
• No personalized service
  

So, it is found that there is lot to improve the experience it provides to customers. It has failed to maintain the basic success factor of ecommerce.

 

Performance and service

Normally people don't want to wait when browsing, selecting or paying in Web store and motion on a dynamic web interface demands greater user attention than a static web interface. A site must be efficiently designed for ease of access but in the case of eBay for signing up for an account can take as long as 24 hours for confirmation. So eBay should improve its performance and service on its site.

 

Look and Feel

eBay is B2C site. B2C sites should offer customers an attractive Web storefront, shopping area and multimedia product catalogue but it is found that eBay tradeoff s among image size, picture quality and details of background in product presentations. Higher visual trustworthiness images on a web interface lead to greater user attention to the product examined than lower visual fidelity images. In addition, compared to smaller images, larger images on a web interface enhance user memory performance for images. So eBay should design its site in such a way that customer could get exciting shopping experience with audio, video and moving graphics to a more comfortable look and feel rather than making tradeoff on size and quality.

 

Personal attention

Personalizing shopping and bidding experience encourages customer to buy and make return visits but eBay lack personalization. It fails to carry the notion "personal" shopper. Personalized service encourage customer to return visit the site and can increase sells through with special offers.

 

eBay can improve their customers' experiences should follow some recommendations to increase positive customers' experiences boost customer loyalty and satisfaction. eBay can try few basic ways to improve the customer experience:

 

 

• Collect Feedback            
  

      Multichannel collection
  

      Real time alerts and actions
  

    Identify the weakest link

• Personalize product and experiences
  

    Configure to order

    Mass customization

• Customized offers
  

    Personal pricing

    Product/ Service

• Redesign Processes
  

    Efficiency and experience

Design the complete customer experience

• Act as one organization to ensure consistency
  
• Act on feedback and communicate actions to employees and customers
  

 

 

 

 

 

 

 

 

 

 

National Income- Assignment I

National Income- Assignment I

1. From the following find a) national income, b) personal income c) personal disposable income and personal saving
   

• Compensation of Employees             $ 1866.3
  
• Business interest payments             $ 264.9
  
• Rental income of persons             $ 34.1
  
• Corporate profits                 $ 164.8
  
• Proprietors' income                 $ 120.3
  
• Corporate dividends                 $ 66.4
  
• Social Security Contributions         $ 253.0
  
• Personal Taxes                 $ 402.1
  
• Interest paid by consumers             $ 64.4
  
• Interest paid by government             $ 105.1
  
• Government and business transfers         $ 374.5
  
• Personal Consumption expenditure         $ 1991.9
  

  
   

1. Why GDP matters for individuals?
   

   
    

2. Explain the effect of the following on GDP.
   
   1. The discovery of a new, easy-to-grow strain of wheat increases farm harvest
      
   2. Increased hostility between unions and management sparks a rash of strikes
      
   3. More high-school students drop out of school to take jobs mowing lawns
      
   4. Father around the country reduce their work-weeks to spend more time with their children
      
   5. Firms experience falling demand, causing them to lay off workers
      

1) Calculation of national income, personal income, personal disposable income and personal saving from the given data:

Headings	Amounts in Rs
Compensation of Employees	1866.3
Business interest payments	264.9
Rental income of persons	34.1
Corporate profits	164.8
Proprietors' income	120.3
National Income	2450.4
Corporate profits	-164.8
Social Security Contributions	-253
Corporate dividends	66.4
Interest paid by government	105.1
Government and business transfers	374.5
Personal Income	2578.6
Personal Taxes	-402.1
Personal Disposable Income	2176.5
Interest paid by consumers	-64.4
Personal Consumption expenditure	-1991.9
Personal Saving	120.2

 

 

 

 

 

 

 

 

 

 

 

 

 

2) Why GDP matters for individuals?

A gross domestic product (GDP) is one of the ways of measuring the size of its economy. GDP is defined as the value of final goods and services produced within the country. It includes domestically earned income by foreigners, and excludes income earned by nationals on the foreign countries. The gross domestic product (GDP) is one the primary indicators used to measure the position of a country's economy. It represents the total monetary value of all goods and services produced over a specific time period within an economic territory. Usually, GDP is expressed as a comparison to the base year. For example, if the GDP is increased by 3%, this is thought to mean that the economy has grown by 3% over the last year.

Measuring GDP is complicated, but at its most basic, the calculation can be done in one of two ways: either by income approach (adding up what everyone earned in a year), or by expenditure method (adding up what everyone spent). Logically, both measures should arrive at roughly the same total.

The income approach, which is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports.

As of now it becomes clear that economic production and growth, what GDP represents, has a large impact on nearly every individual within that economy. For example, when the economy is prosperous, there will typically seen low unemployment and wage increases as businesses demand labor to meet the growing economy. A significant change in GDP, whether up or down, usually has a significant effect on the individual. It's not hard to understand why a bad economy usually means lower profits for companies, which in turn means unemployment and least wages. Individuals' economies are directly affected by its GDP growth. So change in GDP, whether up or down, usually has a significant effect on the individual.

But the research is going on economics as like in other subject matter. Still there are lots of confusions prevailed. While discussing today there arises one controversy. The controversy was, "If a poor person in a wealthy country has a higher material living standard than a "rich" person in a poor country, is the first person "better off" than the second. In this type of case the real picture cannot be represented by GDP.

 

3) Explain the effect of following on GDP ?

 

I).The discovery of a new, easy-to-grow strain of wheat increases farm harvest?

The discovery of new, easy to grow strains of wheat will increases the production of wheat which further will increase the income of farmer. With the increased income of farmer, countries economy will also effected. More employment will be generated in country and more profit will be earned by farmers which will push the GDP upward. So the discovery of a new, easy-to-grow strain of wheat increases farm harvest and increase the GDP higher.

II) Increased hostility between unions and manager sparks rash of strikes

Increased clash between unions and managers directly effect the production of goods. If there is least production of goods than least profit will be generated. The strike on company increases more unemployment. So the increased hostility between unions and manager sparks rash of strike which will effect on production which will further effect in downward shifting GDP of the country

III) More high school students drop out of school to jobs mowing lawns

In short term it can help GDP to grow because unemployed school children will be employed and earn money. But in long run, it will create a negative impact to the GDP as the productivity of students will be least because of their concentration on job rather than study. More over the students are least paid when they are recruited to mowing lawn so there will not be remarkable increase in GDP.

IV) Father around the country reduces their work-weeks to spend more time with children's.

Father around the country reduces their work-weeks to spend more time with children's will effect in country's economy. Fathers who work and earn will work no more. The income of fathers will be less which will further decrease the country's GDP. So the Father around the country reduces their work-weeks to spend more time with children's will decrease the GDP.

 

V) Firms experience falling demand, causing them to lay off workers.

The Firms experience falling demand, causing them to lay off workers. This will have adverse impact on the GDP as the workers will be lay off. The falling demand means itself not good economic condition of the company which will have negative effect on GDP and also the unemployed worker will have less money to spend because of their decreased purchasing power. So when the Firms experience falling demand which further cause them to lay off workers had negative impact on GDP and will pull down GDP to lower rate.

There will be least circulation of economy whc because the production decreases as well as the purchasing power of the worker also decreases.

 

    
 

 

Major factors affecting capital structure, Corporate Finance

1) "There are significance variations in capital structure across the different companies/ industries because there are several factors that affect capital structure". Discuss the major factors affecting capital structure.

 

In every business organization, capital is the main element to establish and run its business activities smoothly. Capital can be collected by using two sources. They are debt capital and equity capital. Debt capital is collected by issuing debentures; bonds etc and they are related with fixed cost of capital. Equity capital can be collected issuing different shares like common stock, preferred stock etc. in simple words, maintaining the balance or proportion of this capital is known as corporate capital structure. So it refers to the combination of various sorts of securities through which funds are raised.

 

Sometimes some financial experts define it as all those capitals and liabilities, which are included in balance sheet. But actually it is not a realistic approach. Capital is related only with long term fund. Hence,

    Capital Structure = Financial Structure - Current Liabilities

Capital structure may be defined as the mixture of debt and equity that comprises the financing of its assets. Hence, the total balance of capital and liabilities is financial structure, not a capital structure. The main objective of financial manager behind capital structure management is to minimize the overall cost of capital and risk, and take the advantage of favorable financial leverage and corporate tax. So while maintaining the proportion between debt and equity, their merits and demerits should be evaluated relatively.

It is not possible to have an ideal capital structure, however, the management should target capital structure and initial capital structure should be framed with subsequent changes in initial capital structure to have it like target capital structure. Some companies do not plan capital structure but they are still achieving a good prosperity.

There are significant variations in the capital structures of different industries and different companies. There are many factors that affect capital structure. Following are the basic factors which should be kept in view while determining the capital structure.

 

 

1. Growth and stability of sales
   

Firms that are growing rapidly generally need larger amount of external capital. The floatation costs associated with debt are generally less than those for common stock, so rapidly growing firms tend to use more debt. At the same time, however, rapidly growing firms often face greater uncertainty which tends to reduce their willingness to use debt. Firms whose sales are relatively stable can use more debt and incur higher fixed charges than a company with unstable sales.

 

1. Competitive structure/ stability of profit margin.
   

Firms with high rate of return on investment use relatively little debt. Their high rate of return enables them to do most of their financing with retained earnings. If profit margin is constant more debt is used.

 

3. Cash flow ability

The selection of capital structure is also influenced by the capacity of the business to generate cash inflows, stability, and certainty of such inflows. Regularity of cash inflows is much more important than the average cash inflows. A company with unstable and unpredictable cash inflows can no longer afford to depend on debts.

 

4. Cost of capital

If the cost of capital is too high, borrowing is costly. So at that situation equity capital is preferable. As compared with other securities, the equity shares are more economical because they have least cost of capital. In the processing of trading, no more floatation costs, brokerage costs etc are incurred.

 

5. Control    

The consideration of retaining "Control" is also very important. The ordinary shareholder can elect the directors of the company. If company sells the common stock, it will bring new voting investors into the firm, making the control difficult. To maintain control within the hand of limited members, a firm has to use more amount of debt or preferred stock because they have no management and voting right. If the firm wants to more equity shares the management right will be diversified.

6. Marketability or lender's attitude

The term 'Marketability' refers to the readiness of investors to purchase a security in a give n period of time. The capital markets keep changing continuously. The capital structure will have to be customized to the attitudes of investors prevailing at the time of issue of capital. If investors demand preference shares, firm must have issue of preference share capital. Due to the changing market sentiments, the company has to decide whether to raise funds with a common shares issue or with a debt issue.

7. Size of the company

The availability of funds is greatly influenced by the size of the enterprises. A small company finds it difficult to raise debt capital. The terms of debentures are less favorable to small companies so they have to rely on equity share and retain earning for funding business. Large companies are generally considered to be less risky by the investors and, thus, they can issue common shares, preference shares and debentures to the public.

8. Floatation cost

Floatation costs take place only when the funds are externally raised. Floatation costs consist of some or all of the following expenses; printing of prospectus, advertisement, underwriting and brokerage etc. Generally, the cost of floating a debt is less than the cost of floating an equity issue. This may lure the company to issue debt than common shares. The company will save in terms of floatation cost if it raises funds through large issue of securities but the company should raise only that much of funds which can be employed profitably. In large companies flotation cost is not a significant consideration.

9. Development of capital market

It's an important factor in capital structure. It refers to the extend which the capital market is developed (i.e. equity or debt market). More developed equity market means more equity used and less developed equity means less equity used. Similarly, more developed debt market means more debt used and vice versa.

 

10. Growth opportunities

The growth opportunities of business can be either tremendous or very low. Depending upon the growth opportunities the debt ratio fluctuates. Higher growth opportunities exist then higher debt is used otherwise vice versa.

 

11. Agency costs

While determining capital structure, having least agency cost is preferred but if there is agency problem than debt is used largely for funding the business.

 

12. Other sources of tax shield

In order to take the advantage of low tax, borrowing is preferable for a firm because interest is considered as deductible expenditure according to the income tax law. But dividends are not considered deductible expenses and they are paid out of profits after tax.

 

13. Level of economic development

If the level of economic development is high then more debt is required. Level of economic development plays significant role in capital structure. In Nepal investors ar shifting to India. Since India is becoming economic giant, Nepali investors are also investing in Indian organization.

 

 

 

Corporate Finance Assignment

21.1) Given,              Nelson Company

Market price of share (P_O) = $32

Subscription price of share (Ps) = $ 20

Right Share issued one for every three share

Value of each right =?

 

 

 

 

 

= $ 3

 

 

21.3) Given,                 Arlene Jackson's Company

Market price per share (MPS) = $35

Subscription price of share (P_S) = $20

Right share issued (α) = 5 shares

Total number of share = 490 shares

Cash in hand = $ 2000

1. What is the value of each right?
   

   Value of each right (V_r) = =2.5
   

 

 

1. Preparing statement showing Jackson's total assets
   
   1. She exercises all rights.
      

Before Offering			After Offering
Assets	Amount		Assets	Amount
Share capital Investment (490 x $ 35)	$17150		Share Capital Investment (588 x $32.5)	$19110
Cash	$ 2000		Cash (2000 – 1960)	$ 40
Total Assets	$ 19150		Total Assets	$ 19150

 

Working

New Share

New Share Value = Old Value – Each Right Value

    = 35 – 2.5

    = $ 32.5

Total Share     = 98 + 490

        = 588 shares.

Total cost of 98 share = 98 x 20

        = $ 1960

 

 

 

 

 

 

 

1. She sells all her rights
   

   After Offering
   

Assets	Amount
Share capital Invest (490 x $32.5)	$ 15925
Cash : Sale of right 490 rights @ $ 2.5	$ 1225
Original Cash	$ 2000
Total Assets	$ 19150

 

1. She sells 400 rights and exercise 90 rights.
   

After Offering

Assets	Amount
Share capital Investment 508 x $ 32.5	$ 16150
Cash : Sale of right 400 x $ 2.5	$ 1000
Original Cash	$ 1640
Total Assets	$ 19150

 

 

21.3 (iii) Working,

New Share =

Cost of New Share = 18 x $20 = 360

Remain Cash balance = 2000 – 360 = $1640

Total number of shares after right issued = 490 + 18 = 588 Shares

 

1. She neither sells nor exercises the rights.
   

Assets	Amount
Share capital Investment (490 x $32.5)	$ 15925
Cash	$ 2000
Total Assets	$17925

 

Total Asset reduced by $ 1225 when shares were neither sold nor exercised.

 

21.4 Given,                 Miller Company

Additional fund required = $ 5 million

Earning of additional fund = 10.5%

Price earning ration (P/E ration) = 15 times

Dividend payout ratio (DPS) = 56%

Tax rate (T) = 40 %

Assuming subscription prices of $ 25, $ 50, and $ 80 a share

1. How man additional shares of stock will have to be sold?
   

 

When share issued at $ 25

When share issued at $ 50

When share issued at $ 80

1. How many rights are required to purchase one new share?
   

Number of right required =	If PS = $25	If PS = 50	If PS = 80
	= = 0.5 1 old share = 2 new shares	= = 1 1 old = 1 new shares	= = 1.6 1 old = 1.6 new shares

    

 

21.4 (3) What will be the new earnings per share?

The Miller Company Income Statement

Particulars	PS= $25	PS = 50	PS = $80
Total earnings ( $1470,000 + 500000 x 10.5%)	$ 19,95,000	$19,95,000	$ 19,95,000
Interest on debt	$ 420,000	$ 420,000	$420,000
Income before tax	$1575,000	$1,575,000	$1,575,000
Taxes (40%)	$ 630,000	$630,000	$630,000
Earning after tax	$945000	$945000	$ 945000
No. of Share = 100,000 Old shares +	=100000 + = 300,000 share	=100000 + = 200,000 share	=100000 + = 162,500 share
New Earning per share =	= =$3.15	= =$4.725	= =$5.82
(4)Market price per share (MPS)= P/E ratio x EPS (P/E ratio is 15 times)	= 15 x 3.15 = 47.25	= 15 x 4.725 = $ 70.875	= 15 x 5.82 = $ 87.23
(5)Dividend per share = EPS x 56%	= 3.15 x 0.56=1.76	= 4.72 x 0.56=2.65	=5.82 x 0.56=3.26

21.4 (b)

Value of the position after offering

New Share=Req new + 100 = = 300 share   = 300 x 47.25 = 14,175

= =200 shares   = 200 x 70.875 = 14175

= =162.5 shares   = 162.5 x 87.23 = 14175

Competitive Advantage of Information technology in banking sector of Nepal

Case:

Competitive Advantage of Information technology in banking sector of Nepal

(Special focus on Bank of Kathmandu & Rastriya Banijiya Bank)

28^th January 2008

Trends in Banking Sector

Nepalese banking sector has seen drastic changes over a short span of time. When most of the businesses are going through the tough time, Banks seem to be doing relatively quiet well with the rise in the number of banking institution in the country. Also the major shares traded in NEPSE belong to the banks as people prefer to invest more on them. The primary reason behind which is the transparency in the business and the growth or advancements that banks are achieving.

There were days when National bank Like Rastriya Banijiya Bank (RBB) were operating with the very few services that mostly relied on the employment concept, i.e. unavailability of technology and depending upon the employees for all processing. Today, the entire scenario is changed in case of private bank like Bank of Kathmandu (BOK) that operates with several effective services and relies mostly on the information technology for their business operations.

Legacy System in Banking Sector

The operations of the bank was operating in legacy systems were a victim of red-tapism as it involved several steps for activities which could be solved in a click of a button. The mere process of clearing a cheque began with.

• One staff provide token for the cheque produced in counter
  
• Second one verify the balance in account holders account
  
• Third staff verifies the signature of the cheque
  
• Fourth step, authorized person approves the cheque for final payment
  
• Fifth, assistant teller count the money
  
• Finally the senior teller reconfirm the cash and make the payment
  

Customers to withdraw money from their own account would have to go through time consuming processes. On the other hand it is costlier for the bank itself also because it has to recruit six to seven people to handle small job like payment of cheque. This was just an example of the long and winding way of doing things in one of the situations. The same kind of problems prevails in other activities as well. As a result despite of being pioneer bank of Nepal, people preferred private bank and those tedious times consuming procedure would eventually lead to closing of the accounts and shifting to a new bank which provides better services promptly.

In order to avoid losing customers IT intervention was more than necessary for the institution. So it made a quick survey on it and the resultant was Finacle, Globus, Pumari Plus etc . This Functional Business Systems brought everything to a common platform and greatly helped to reengineer the process.

There came various advantages after implementing IT in the banking industry.

• Firstly it increases the accuracy. There includes number of staff in legacy system to complete one function and remain maximum chances of inaccuracy in transaction
  
• Secondly it reduces the cost because only few numbers of staff are needed to complete the function with the support of IT. With IT excess number of staff are laid off which would further reduce the cost of operation.
  
• Thirdly IT increases the efficiency of the employee and which further increases the satisfaction level of staff as well as customer
  
• Fourth, IT implementation save huge amount of time of customers and staff
  
• Fifth, IT change the whole banking industry radically
  

IT implemented Banking System with special reference to BOK

Bank of Kathmandu Limited has become a prominent name in the Nepalese banking sector. Today it has become a landmark in the Nepalese banking sector. One of its main objectives is:

• To use the latest banking technology to provide better, reliable, and efficient services at a reasonable cost.
  

In pursuit to deliver the products and services of the highest standards, Bank of Kathmandu has state-of-art technology for appropriate and efficient Management Information System (MIS) for rendering quality services. It uses VSAT and Radio Modem for networking, for effective and proficient execution of banking services and centralized banking operations for better risk management, consistent service deliveries and lowering operating cost.

BOK is using Finacle as its major banking application software which is certified by Information Technology Association of America (ITAA) for using certified processes and methods.

Now- a-days the calculation of figures is not that tough, due to the concept of MIS is been introduced in the Bank. All the financial transactions are customized by the system. In BOK, MIS has been used by every department. It uses intranet to link the various departments like Accounts and Research and Development department.

The operations of IT implemented bank carries out its cheque payment in least time with few staff which further reduced the human resource drastically at the same time save huge amount of money and time.

The comparative figure of banking system with legacy system and IT implementated with focused on one department only is given in tabular form below

System Analysis based on cost
	Legacy System, Nepal Bank Ltd			BOK, IT implemented
		Time Taken(Min)			Time Taken (Min)
1	Token Provider	2	5000	Teller	3	10,240
2	Balance Verifier	5	5000
3	Signature Verifier	6	5000
4	Chief Accountant	2	5000
5	Asst Teller	3	5000
6	Teller	2	5000
		20	30000		3	10,240
	Saving (30000-10240) * 3		59,280	Average Number of Teller, 3 in each branch
	Per year Saving		59,280*12	711,360
	No of Branches			18
	Annual Saving			12,804,480
	Time Saved			17 minute per transaction

The above table is based on the approximate figures of the salary of the legacy system followed in the RBB and the IT implemented BOK. This is focused only on the cheque payment procedures of the bank. It is seen that there is the annual cost saving of around 1.2 crore by reengineering the simple business process by the use of IT .So, the analysis if expanded further to overall business processes, just imagine the cost benefits it generates.

Besides cost, it increases the efficiency of the employees, saves time for all, and makes the job easy for both the employee and the customer, rendering higher degree of job and customer satisfaction.

MIS is helping the daily decision making. Forecasting is made on the basic of the data received from the MIS and the deviation from the planned forecast is very little. Almost ninety-eight percent of the forecast made is accurate. And on the basis of this forecast the decision is made.

Summary

Major Findings:

• The major data source/ banking software of BoK is Finacle.
  
• Daily MIS report is e-mailed to the senior executives to provide up-to-date analysis of the report.
  
• Technical literacy requirement is needed for the implementation of MIS.
  

Problems/ Demerits of MIS:

• Out of 200 employees in the bank, only eighty users are allowed to use MIS due to the cost factor, as the bank has to buy the software from Indian company paying high amount in the beginning and again it has to pay huge amount every year.
  

Recommendation

The existing system is very systematic and scientific as they are using Finacle Software which itself is a MIS. It is very secure, economically, technically and operationally feasible at the bank. So no reengineering is required particularly in Finance. However, Finacle can be upgraded to the new version since the bank is using finacle 6.2 version when there is finacle 10 available in the market.