Information technology vs industrial cluster formation Essay

Information technology vs industrial cluster formation - Essay Example The very meaning of markets and boundaries defining the markets and business domains have undergone a complete change because of the internet and fostering technological change that it brought in its wake. While corporate business world has taken full advantage of the internet, it has still I the early phases of realizing full support and potential of the internet. IT speculators suggested huge benefits from the internet which meant relocation and complete physical freedom from the customers, competitors and physical boundaries of the market which earlier defined the very limits of any industry. By early twentieth century, the markets were tended to be defined at local level, at city level and at the national levels. There was little mention of the international or global markets. This was because of limited progress achieved in the means of communications and transportations. Most markets were considered as physical definitions or definitions in terms of physical presence of the buy ers and sellers. Each place where buyers and sellers could be physically present were defined as local markets. Where ever the buyers and sellers could gather together from a national scale were the national markets. The limited advancements in the means of transport and communications were a natural barrier on the market definition. Discussion: As the industrialization process grew and the means of transport and communications also grew with them. The beginning of the railways system and the telegraphs and telephone brought about some relaxations in the definition of the markets and the markets definitions also included the areas from far off here there were customers of any product or service where transport means such as railways and communication means such as telephone and telegraphs had access. Therefore the means of transport and communications have served as a key factor defining the geographical boundaries of markets. The definitions of the market boundaries has moved hand in hand with the advancements of the transportation and communications. The second half of the twentieth century has brought a technological revolution especially in the IT sector. The computer is the most fascinating invention of the twentieth century. It has transformed the speed and accuracy levels of the information processing. It has also promised and delivered transparency and merit. In the last fifty or sixty years the world has witnessed the rise of internet which has impacted the communications in an un-precedent manner. The rise of the internet has defined and redefined the basics of communications in every nook and corner of the world. The business markets and each industry and segment is deeply affected by the growth and usefulness of internet. Amongst the key benefits envisaged by the IT experts, the Internet was thought to redefine the markets as well. In several sectors such as services banking and retailing and IT, it was thought that the internet would introduce bra nchless services virtually eliminating the physical presence of the branches in every area of the country. But despite the wide spread use of the internet in every office and production factories and manufacturing area, it is noted that companies still prefer to be located near their competitors and outsourcers. Why? This is the primary question that we need to answer in this essay. In the

Financial Management Master Research Paper Example | Topics and Well Written Essays - 2000 words

Financial Management Master - Research Paper Example It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. Its market capitalization (as on 11/5/2008) is 33.09 billion pound, revenue is 47.3 billion pound (2008), operating income is 2.97 billion pound(2008) and net income 2.13 billion pound (2008). All figures below are for the Tesco's financial years, which run for 52 or 53 week periods to late February. The figures in the table below include 52 weeks/12 months of turnover for both sides of the business as this provides the best comparative. Total Shareholder Return (TSR) shows the return on investment a shareholder receives over a specified time frame and takes into consideration the share price appreciation/depreciation and dividends received. The TSR is calculated by adding the dividend per share to the capital gain/loss and dividing this by the share price and is expressed as a percentage change over time. I have extracted the data for 4 years for Tesco and Sainsbury and have taken the dividend comprising of the interim and final dividend paid by Tesco along with the stock prices appearing as on the close of every financial year as well as in the beginning of the year for the financial years from 2004-05 till 2007-08. TSR ANALYSIS FOR TESCO : As it is quite clear from the calculat... racted the data for 4 years for Tesco and Sainsbury and have taken the dividend comprising of the interim and final dividend paid by Tesco along with the stock prices appearing as on the close of every financial year as well as in the beginning of the year for the financial years from 2004-05 till 2007-08. PARTCULARS OF DIVIDEND PAID BY TESCO DIVIDEND IN PENCE/SHARE PARTCULARS OF SHARE PRICES AS ON PARTICULAR DATE - TESCO SHARE PRICE TSR FOR TESCO Interim - 10/10/07 3.20 As on 23/02/2008 - End 400 Final - 23/04/08 7.70 As on 24/02/2007 - Beginning 446 Total 10.90 Difference in prices - 46 [(-46+10.9)/ 446]*100 = 7.87% Interim - 11/10/06 2.81 As on 24/02/2007 - End 446 Final - 25/04/07 6.83 As on 25/02/2006 - Beginning 335 Total 9.64 Difference in prices 111 [(111+9.64)/ 335]*100 = 36.01% Interim - 28/09/05 2.53 As on 25/02/2006 - End 335 Final - 03/05/06 6.10 As on 26/02/2005 - Beginning 308 Total 8.63 Difference in prices 27 [(27+8.63)/ 308]*100 = 11.57% Interim - 29/09/04 2.29 As on 26/02/2005 - End 308 Final - 20/04/05 5.27 As on 27/02/2004 - Beginning 258 Total 7.56 Difference in prices 50 [(50+7.56)/ 258]*100 = 22.31% TSR ANALYSIS FOR TESCO : As it is quite clear from the calculations that the Total Shareholder Return for the Company has been quite volatile in nature and has been variable for the four years period and the same was negative for the current financial year 2007-08. This is on account of the fluctuating share price although the dividend per share has been on a constant rising scale. Moreover the performance of the stock has been quite volatile for TESCO and for the current financial year 07-08, it showed a downward trend. (ii) Market Value Added(MVA) A calculation that shows the difference between the