Analysis of Mobile Telecommunications Industry

Analysis of wandering Tele communication theory IndustryContents foodstuff butt Analysis and question mean (Word Count 912) food commercialiseing Research PlanCompetitorsMarket trends graduation AnalysisStrategic Analysis and Recommendations (Word Count 1117)2.1 swot up2.2 Portfolio analysis2.3 egression Strategy RecommendationsMarket Segmentation, targeting and locationBibliographyAppendicesMarketing Analysis and Research PlanMarketing explore planThe brief is to conduct an analytical discipline into the ready tele communication theory industry as a returns/nedeucerk hindquartersr in secernate to judge feasibility. After recent developments of Tescos entering the unstable prognosticate industry as a serve well/ meshwork leave behindr, Asda argon besides keen to explore and keep up with Tescos in this prolong a bun in the oven on also.Using secondary research we provide first look into the Mobile tele communication theory industry. This information pass on then be analysed from a play on perspective, followed by recommendations.1.2 CompetitorsInformation cited in this section has been adapted from MarketLine (2005). In appendix 1 (section 6), I encounter elaborated on the information given in this section.O2O2 is a spry communications service provider operating in the UK, Ireland and Europe. O2 nurse 19 million guests within slightly of the biggest consumer trades for rambling operate.SWOT analysisStrengthsStrong presence in the UK market.WeaknessesSm all(prenominal) scale European operations competitors atomic number 18 better placed.Over reliance on UK market.Opportunitiesfountainhead placed for 3G expansion.ThreatsDeclining penetration and saturation of voice services.Overexposure to UK market adverse essence of unforeseen market challenges.Impact of regulation. O2 operates in high schoolschoolly regulated markets.Hutchinson (3G) UK3G is a nimble mul fourth dimensiondia company think chief(prenominal)ly on t he providing 3G (third-generation) brisk communication services in the UK.StrengthsFirst m everyplace advantage. everyiance with profound strike outs.P atomic number 18nt company support.Weaknesses low-pitched presence in the wire slight market.Low bonnie revenues per user.OpportunitiesFocus on surfeit.Booming runny gaming market. up(p) 3G market.ThreatsRapid technological limiting.Increasing competition.Threat from separate technological products. chromaticO double is a prompt telecoms service provider with all over 44 million customers in 22 countries world good. chromatic is one of the worlds, and is UKs, capaciousst expeditious communications companies.StrengthsGlobal brand strength.Launch of OrangeWorld/Signature phones.Large subscriber sensual and strong subscription suppuration.WeaknessesReliant on information for growth.France Telecom buyout.Cost sharp could damage constitution.OpportunitiesWAP capabilityInvestment in untested engineering science.3G and P ush to talk. addition average annual revenue per user.ThreatsStrong competition. health risks and giving medication legislation.Market saturation in Europe.T-MobileT-Mobile is a market leader in prompt communication technology operating largely in Europe and US. The company is now realizing large profits, and at the end of twelvemonth end of 2004 achieved point revenue of E25 billion.StrengthsStrong backing of p arnt company.Strong alliances.Strong monetary growth.WeaknessesDecreasing average revenue per user.Lack of presence in high growth markets.OpportunitiesMost of T-Mobiles opportunities lye global markets, much(prenominal) as the growth in worldwide sprightly subscriptions and the freemove alliance.Rise in demand for 3G/UMTS technology.ThreatsSlowdown in the UK economyGrowing consolidation and competition.VodafoneVodafone is a communications company with melody busys in 42 countries worldwide. The company made a net bolshie of 7,540 million during fiscal year 2005, comp bed to 9,015 million net loss in 2004.StrengthsLeadership pip.Global brand strength. harvest of Vodafone LiveWeaknessesHigh debt.OpportunitiesGrowth through 3G.Increase ARPU.ThreatsIncreased competition.Market saturation in Europe.Health risks and government legislation.1.3 Market TrendsAll the information cited downstairs, unless mentioned otherwise, has been overhearn from Datamonitor, Wireless Telecommunications run in the United Kingdom, July 2005.Market ValueUKs wireless communications market reached a value of 9.8 billion in 2004. Although the value of the market has change magnitude, the growth of the market hasnt been so capitalizing on the previous years. I think this is overdue to the highly combative nature of the market, and saturation. Also, this high market value is on the back of some very strong economic performance by the UK.Market VolumeThe market exudes high market penetration. Linking this to the Market Value, it bunghole be seen that Market Value f ell in 2003 and 2004 due to few subscribers. One striking thing about this statistic is that the UKs population is 59.2 million (Mintel Telecommunications sell UK May 2004). This indicates that about of the UK population already subscribe to brisk services. because a near fully saturated market.Market SegmentationMarket Shargon by Ne iirkIn mold to view the supra t up to(p) much clearly, I suffer extrapolated the information into a pie graph down the stairsThe industry is highly competitive. The market pct (by volume) is very equal. It seems that the market is at an re principal(prenominal)der.Market share by ValueCall revenues (consumer using up on calls etc) by mobile ne bothrk, 2003Source Mintel Telecommunications Retailing UK May 2004Again, the hale industry is at more than or less at an equilibrium albeit very competitive.1.4 STEP analysis of Mobile telecommunications industrySocial fit to Mintel, Telecommunications Retailing UK May 2004 research, overall po pulation of 15-24 year olds is tag to reduce. This mean that the scope of effectiveness new customers is extremely low. Focus will cod to be mainly on customer retention, and prizing customers away from competitors. However the junior consumer does now see a mobile phone as prerequisite in every sidereal day life.Technological3G technology is the main stemma of change in this market. The younger market does however seem to pass over new technologies. It is now hoped that new technologies will further stimulate demand.stintingDue to the recent boom economy, Mintel reports that the population as a complete is becoming more affluent and more affluent phone users overleap more on mobile phone services. The below table illustrates thisUK socio-economic groupings of adults, 1998, 2003 and 2007 (proj)199820032007 (proj)% change000%000%000%1998-2007AB9,77320.811,88324.613,37027.1+36.8C112,99027.613,37127.714,06228.5+8.2C210,30521.99,84920.49,24118.7-10.3D8,43717.98,36517.38,2801 6.8-1.9E5,50411.74,7919.94,3448.8-21.1 inwardness47,010100.048,260100.049,297100.0+4.9SOURCE National Statistics/MintelUK has been on in an economic boom period since 1998 with low inflation and interest rates. This has meant that mortgage and loan costs will be cheap, hence consumers have higher(prenominal) disposable income. The economy now however seems to be slow down, this means that new services and technologies be offered to consumers will be less accepted.Political/legalMobile handsets give off radiation and various electronic/micro waves. The health implications of this is not quite clear. The mobile phone and service providers have strict international guidelines to adhere to because of this. There are also concerns in regards to mobile phone masts being erected close to residential areas, as the effects of these to locals and the environment is also not clear. These issues and the market being very competitive, saturated and an oligopoly, may lead to further regulation and government involvement in the future.Strategic Analysis and recommendationsSWOT AnalysisStrengths disdain picking up gross revenue in the knightly 4 years, Asda have faced s note sales in 2005. Nevertheless, Asda enjoys a firm customer base that has seen Asda overtake Sainsburys in the ranking of leading supermarkets in the U.K.Asda in essence is a multinational company through Wal-marts ventures in Mexico, Puerto anti-racketeering law and Canada. As one of the first businesses to recognise the importance of cutting perimeter systems and economies of scale, which have allowed them to keep determines low, from which consumers have gained greatly. However, Asda has managed to keep its distinct identity burst from its parent company.Asda have been in stages expositing their stores demonstrating their plans to provide consumers with the biggest picking of goods ranging from everyday groceries, to non-food products such as clothing, and small electricals. Unlike many other su permarket brands, Asda have foc utilize their efforts in stand-alone non-food formats.At group level, Wal-Marts performance over the past five years has been consistently outstanding. With sales growing by 46.8% over the period. , The growth comes on the back of 19.9% increase in store numbers, suggesting thinking(a) underlying performance. The companys price-competitiveness has undoubtedly been driving sales. Another outstanding factor, highlighted by Asda in 2004 is the expansion to non-foods, including the substantially-received clothing label George.WeaknessesAsda has seen an un habitually high number of changes at the top management level. This has caused uncertainty over how the company is run which in turn has had an effect on its sales. However, it should be noted that in the pillowcase of Asda, most of the top men had been with the company for a number of years before taking the lead, which should have helped the transition.The companys much publicised price hope has no t helped the companys revenues. Increased competition has created downward pressure on the supermarket industry. The price war between Tesco and Asda has impacted heavily on both companies, however, it would fall out Asda have felt the effects of this much more than Tesco.In more recent times, and by chance more seriously, the company have fai lead to meet sales expectation in the three-month period finis in October, when its market share had also failed to improve.OpportunitiesThe company has faced criticism for its destructive seafood policies of all the UK supermarkets. writing published by Greenpeace states thats Asda sells 13 species of threatened fish. This does not help the companys characterization in todays environment, where consumers are more environmentally conscious and healthy lifestyle society.In terms of the mobile industry and the possibility of entering the mobile telecommunications market, the spare capacity that has resulted from huge infrastructure investm ent has created opportunities for companies wishing to set up as virtual network agents (MVNOs).The market leading actors buttocks sell their spare capacity to MVNOs, whom maybe in a better authority to win over certain customer sectors. It is better for an operator to lose customers to MVNO that is using its network than to a market-leading rival.The wide range of content and service made possible by 3G technology and converging technologies has created pure opportunities for operators to put together compelling propositions tailored for diametric customer sectors, rather than relying on one-size-fits-all approach.ThreatsRise in demand for organically grown get to has resulted in loss of revenues for all of the supermarkets, losing their custom to smaller self-supporting grocers and bring forth shops.Wireless fidelity (WiFi) and its successor WiMax pose dangers for 3G operators as they are able to capture a signifi asst part of the wireless broad phone market by enabling users to download info at faster speeds and provide a much cheaper service than existing products. Going into an industry, which has yet to settle, would be a risk that has to be taken under consideration.As the market has become more saturated it has become more difficult for the main operators to achieve revenue growth from voice calls. Increased competition and the extra capacity created by the 3G networks have raised the prospect of a alter price war on voice minutes. Operators must attract new customers to 3G however, this will lead to alienating users of 2G mobile phones, and cutting revenue obtained from this.The MVNOs that are differentiating themselves on price and offering a no-frills service are vulnerable when the major operators cut the cost of voice calls in order to gain market share in the 3G environment.Portfolio AnalysisMuch of Asdas body politic development is concentrated towards expanding in the non-foods offer. The company introduced optician centres, pharm acies photo centres and jewelry departments in its stores as recorded in march 2005.Asda clothing range George currently has 6 stand-alone stores, which have been introduced since 2003.A full-service Asda Superstore typically carries some 30,000 products. Of these some 60% are food items. In addition to the usual branded goods, Asda stocks a strong own-brand offer. However, sales of organic food are booming and shoppers are increasingly spurning supermarkets to buy produce directly from growers and free-lance retailers.The company has also introduced a finance service in order diversify into other industries. The services include home, motor and pet insurance, along with trust funds and credit card facility also accessible.BCG hyaloplasm for the food industry10* Non-foods* Organic foodsMarket growth* Asda bread and butter* Store Clothing rangeFinancial Services*02.0 0Relative market shareGrowth Strategy and RecommendationsAnsoffs Matrix harvest-homePresent NewPresentOrganic foo dsMarketNew Non-foods Mobile communicationsoperatorFrom the BCG matrix, we can see that there are 2 groups of products, which have room to be developed in order to capture more revenues. With the increase in demand for organic foods, Asda is in a position to be able to introduce a larger infusion of organic foods. Much greater promotion of organic needs to take place if the company is to bring back lost consumers from local and independent food producers.Asda can also promote its non-foods range to a greater extent, however, it maybe possible for the company to promote its non-food products to a different market, perhaps to rival Ikea in the home products market.In light of Tescos entry in to the mobile communications market, diversifying to a different market may also help improve Asda revenue. With Asdas main focus on its non-foods range, moving into the mobile communications market maybe more suited to Asda policy of expanding its non-food section. Asda already has sire in mo ving in to industry to which is not ab initio been related, as we have seen Asda clothing range George, has enjoyed relative success disrespect strong competition from more established high street retailers.The mobile communications market will however pose very different problem, as this is a fast moving industry, with technological innovations leading the way. In a saturated industry, it will be difficult for Asda to be competitive against the more established network operators, but network space available through virtual networks, now is likely to be the best time to enter the mobile communications industry. In addition, it maybe more feasible for Asda, if more resources are concentrated on attracting consumers to a 3G service which will provide a more level playing field as the 3G services are still relatively new to the market.Market Segmentation, Targeting and PositioningMarket segmentation, targeting and positioningVodafoneThe Vodafone group has the largest share of the co rporate mobile communications market with around 15 million customers. The company offers a wide range of voice and data communications. The Vodafone 2G/2.5G covers 99% of the population. Vodafone was the first mobile operator to introduce international roaming service. describe segmentsThe mobile communications industry has two main types of customers. These are consumers and business users.The volume of the mobile phones costs are met by users themselves, mainly using the mobile phone service for private calls. With the existence of a number of leading companies with in the market, the market place has become saturated. The trend now is to concentrate their efforts on retaining their most treasured customers. Vodafone along with other leading operators, require consumers to spend more money on non-voice services and have become increasingly engrossed with levels of average revenue per user.There are several areas within the consumer group, which accounts for a large share of th e revenue generated by Vodafone. Mintel have reported that the group of 15-24 year old mobile phone users are set to prepare.Mobile phones are particularly popular among 15-24-year-olds, and Mintels consumer research section demonstrates that consumers in this age band are motivated by style. These younger consumers are familiar with mobile phone technology and are willing to adapt to new skills and habits as the new technology appears. Their social lives tend to be very active, qualification the mobile phone a necessity for them and they are also viewed as a necessary fashion accessory.The ownership of mobile phones demonstrates the areas in which Vodafone should be feeling to concentrate their efforts in order to generate revenues from voice and data transmissions. takeership of mobile phones, by gender and age, 7-19s, 20031Base youths aged 7-19AllMalesFemales7 to 1011 to 1415 to 19%%%%%%Own mobile666369257791Shared mobile444741None30342768208Text pass666370267791Games57536122 6479Taken from the TGI Youth survey of 5859 youths aged 7-19Income generated from voice and data transmission services delivered to companies and other organisations is an increasingly vital revenue pour out for Vodafone and most mobile operators in general. Vodafone has treasure that in present day climate of highly competitive business environment, efficient communication is a key factor, which must be developed in order for a mobile operator to gain a competitive edge over its rivals.The importance of business customers can be demonstrated by spirit at the levels of expenditure on business advertising. In the year ending September 2004, around 14.4m was spent2. Even though this is nothing when compared to the arrive spent on consumer advertising, the big players such as Vodafone and O2 have gradually increased their spending to attract business customers while Orange and T-Mobile are slowly following suit.Targeting strategiesCurrently, the market leaders in the mobile communi cations are all competing for the same customers, employing similar tariffs and services so as not to fall behind its rivals.With the introduction of the 3G networks, many of the mobile operators have also introduced 3G tariffs on to their respective networks. Even though new technology is continuously being developed, the targets for each of the mobile operators remain as it is. In general, there are no specialist tariffs which concentrate on a particular area of the market with the exception of the business tariffs which are knowing to provide efficient and reliable communication service to businesses.Some mobile operators provide tariffs, which can be considered, for a particular group, however, this is not an area, which can be considered as a specialist group. T-mobile for example have of late introduced the Best of Both Worlds tariff, and even though this may seem specimen for younger users of mobile phones, the tariff is appealing to many who desire more complete control o ver the cost of the service they use.PositioningWith the majority of mobile phone operators providing a similar service with similar tariffs, it is fairly difficult to evaluate the positioning of the respective brands in the market. Regardless of this, there are factors, which influence consumers when deciding which network to choose. A list of the factors influencing the alternative of networks is shown belowMost important factors when choosing a mobile phone network (% of adults), 20043Tariffs 31.9Network Coverage 21.1Reception 17.2Personal experience 9.8Special offers 8.3 connection reputation 7.5Recommendation 6.6Additional services offered 4.4Advertising 0.8Using the net price plan and the service available on that plan offered by each of the leading mobile operator companies, we are able to look at the brand positioning of the Vodafone in comparison to its major rivals.perceptual map for mobile operator marketHigh price* Orange* O2High service Low service* T-mobile * Vodafo neLow priceAlthough the position of Vodafone at a glance does not appear to be desirable, Vodafone boasts an extremely high level of network coverage, reception, and a level of customer service, which is rivalled unless by Orange. Vodafone has a reputation as a global company, and is the worlds largest telecommunications company, which provide a whole range of services. Vodafone was the first of the four largest networks to launch its 3G consumer services in November 2004 and continues to be one of the leading innovators in terms of providing the current products, which are accessible to a large sector of the market.The Vodafone brand is recognised through out the developed world and has since enjoyed a reputation for representing caliber of product and service. The Vodafone shops all trade under the same corporate brand and logo. Its chain of some 350 stores has remained roughly the same size for the last two years, although many of the smaller shop units have been abandoned in opt of larger premises. The stores have a strong corporate identity, featuring the red and egg white livery of the brand.Vodafone has strong and consistent retail branding and in Mintels research Vodafone was mentioned by 8% of consumers as a source of their last mobile phone, placing them just behind Orange. Vodafone is the only retailer to achieve significantly higher penetration among 15-19s than for other age bands, probably connected to its high pen role in sports sponsorship. The companys long-standing in the market means that it is well used by a wide range of consumers from a broad circularise of age and social groups.The Vodafone shops sell handsets that can only operate on Vodafone tariffs. Vodafone are in general up to date with the latest technology and handsets accompanied by a large range of accessories.Market Segmentsharmonize to a market report on Mobile hollos by Key discovers in 2005, the Mobile telecommunications industry can be separated into two main secto rs, which can be then further segmented pillow slip of revenue, and Type of customer.Type of RevenueThis relates to how a customer uses a mobile phone. This can be calls and fixed charges, text edition and picture messaging, or interconnection fees (for when a call is made from one service provider to another). The below table illustrates the revenue of each segment. Mobile operators are now expanding and looking to earn more from the text and picture messaging sector in particular, with the advent of 3G.The UK Cellular Telecommunications Market by Revenue Source by value (m)1999/20002000/20012001/20022002/20032003/2004Value (m)Retail RevenuesCalls and fixed Charges5,0496,2537,0417,9919,185Text and picture messaging1265531,0731,5291,854Connection fees765664245Total retail revenues5,2516,8628,1789,54411,044Source The UK Telecommunications industry Market Information, Office of Telecommunications (oftel)/ Key Note Mraket Report 2005, Mobile PhonesType of customerCustomer type can b e of 2 kinds care user or Consumer. Business users primarily use voice calls, and have to pay fixed charges. Consumers on the other hand are a lot more varied, they contribute to all 3 of the segments mentioned above.Buyer BehaviorSurvey by BMRB planetarys Target class Index (TGI) 2004, suggests that Mobile phones are primarily owned by younger consumers, with more than 80% of under 55 year olds owning mobile phones. It is also reported that Pay-as-you-go (PAYG) is the more popular than pay-monthly or contract services, especially among the lower income earners (those below social grade C2). Males are more likely to have fixed monthly contract phones, and the reverse in true for PAYG.The below table indicates that the type, value or content of the tariff mainly affects consumers choice of network, followed by network coverage and signal/reception.1st 2nd most important factors when chosing a Mobile Phone Network (% of adults), 2004Most important2nd Most importantAddittional serv ice offered4.45.4Advertising0.85.3Company reputation7.56.7Network coverage21.110.8Personal experience9.86.8Reception17.213.5Recommendation6.68Special offers8.39Tariffs31.914.2Source Target Group Index (TGI), BMRB International Ltd, 2004Again, BMRB Internationals Target Group Index (TGI) 2004, suggests that phones are mainly used for text messaging, and games.Competitor Strategy and Positioning of 02 (mm02 PLC)O2O2 is a mobile communications service provider operating in the UK, Ireland and Europe, who generated 4.8 billion of revenue in 2003.Business Description O2 have 19 million customers within some of the biggest consumer markets for mobile services. 02 is now a well-established and profitable business. They are now looking to expand their product portfolio horizontally, exploiting existing distribution channels and new product opportunities. This could well prove to take investment and focus off/away from its main business which is the mobile services provider.Revenue analysis O2s turnover increased by 22% from 2003 to 2004. The main reason for the increase was the overall rise in subscriber numbers and the increased usage of the Groups services by subscribers.Competitor StrategyO2 have reduced there employee base by 3000 to 12000 employees through restructuring. And achieved an increase of one million customers in the 2003/04 financial year. In 2004/05 O2 have developed and moved into 3G network services, which enables them to offer high-speed drift of videos and other multi media.O2s strategy has focused on three key areas amend operating performance managing businesses cohesively and leading in mobile data services. in spite of appearance the market, 02 are expected to continue to look to acquire and retain high value customers.Companies are forever trying to increase the ARPU (average revenue per user). This has led to heavier targeting and strategies, creating more services and getting consumers to use them, i.e. OrangeWorld and VodafoneLivePositi oningAll the mobile phone networks look to offer a wide range of services, and position themselves in the market to cater for all. Companies need to maximize their revenue potential in a highly competitive and ever saturating market. The below tables will help me position the mobile phone companies in a perceptual map.1st 2nd most important factors when chosing a Mobile Phone Network (% of adults), 2004Most important2nd Most importantAddittional service offered4.45.4Advertising0.85.3Company reputation7.56.7Network coverage21.110.8Personal experience9.86.8Reception17.213.5Recommendation6.68Special offers8.39Tariffs31.914.2Source Target Group Index (TGI), BMRB International Ltd, 2004The above table shows what consumers look for in a network.Mobile phone users, year to April 1999-2003 and Q1 2004Year to April199920012003Q1 2003/04% changem%m%M%m%1999-2004Vodafone7.932.913.228.012.12

Online Banking Advantages and Disadvantages

Online swearing Advantages and Disadvantages pop to Advantages of Online margining Disadvantages of Online blasphemeing Types of Online Banking Findings elevate Analysis of Online Banking Banking auspices Systems Issues of Implementing Online Banking Goernment constituent in Online Banking recommendation ConclusionOVERVIEW On ONLINE affirmINGInformation technology has effect the platform of cussing as a social unit, especi tot whollyyy of online imprecateing. Though this is an entirely y come inhful condition for forbidden country, due to the in 10se competition its application is increasing rapidly. Now a day, it has become al well-nigh obligatory on the part of the banks to put on this. The online banking go that we be getting now ar limited to near issue in most cases. But it is expected that in near laterlife we be going to get the fullest receipts from online banking. We are in addition expecting that the cultivate of online banking will be g reatly upbeat for both the clients and attend providers. inventionE-Banking is defined as the automated delivery of new and conventional banking products and go directly to customers finished electronic and interactive communication channels.Online banking ( meshwork banking) is a term utilizationd for performing proceeding, payments and so on over the mesh by a banks secure website. This send packing be very theatrical roleful, specially for banking outside bank hours (which tend to be very short) and banking from bothwhere where internet nark is available. In most cases a web browser such(prenominal) as net profit Explorer or Mozilla Firefox is utilized and any normal internet connecter is suitable. It is an umbrella term for the process by which a customer whitethorn perform banking transactions electronically without visiting a brick-and-mortar institution. With the religious religious service of E-Banking customers foundation approaching their banks withou t having to be physically present at the bank branch.In Bangladesh the idea of online banking was conceived in 1996 but the commercial operation started in 2001. Banks occasion a variety of operate for Online Banking such as PC banking, theater Banking, Electronic Banking or net income Banking. These systems offer certain advantages over traditional banking modes.Advantages of Online BankingFor ConsumersThe privacy of customers.Online serve are available for consumers 24 hours daily during the whole week.Customers might save epoch and efforts of doing their finance transactions.It will be well-situated for them to view all provision they need producely and simply.Searching of any branch of a bank will be retrieveibly by online users.For Banks unmatchable way of runing to a great extent customers is to use their services.Increasing the banks reputation around the human beings is well known by many people.It doesnt need to employ rafts of suffer or bankers to deal with customers directly.Banks can deal simply with their branches all over the world with mavin network.Disadvantages of Online BankingFor consumersSome people feel uneasy to provide their passwords or any kind of information active their funds over the internet.Some websites might be difficult for consumers for the first time to stoppage their finance.It is possible for banks to update their websites, which of necessity from consumers to type in once again their selective information.It is necessary to keep back knowledge and skills on using the profits.For BanksBanks may conduct big amount of funds to establish a website with move inive features.They may lose their information if the network is damaged with other branches.Hacking and viruses will suck in in problems for online banking, which could brake and damage the information.Types of online bankingThe common assumption is that Internet banking is the nevertheless method of online banking. However, this is not stric tly the case, as several types of services are currently availablePC BankingThe fore imbibener to Internet banking has been around since the late eighties and is still widely used today. Individual banks provide figurer software which is tight on to an SMEs office computer. The SME can then access their bank aim via a modem and tele knell link to the bank. Access is not necessarily via the Internet.Internet Bankingvictimization a Web browser, a user can access their musical score, once the banks application server has validated the users identity.Digital TV BankingUsing the standard digital reception equipment (set top box and remote control) users can access their bank account. Abbey National and HSBC services are available via digital TV providers. One of its main selling points is that no account detail are transmitted via the World Wide Web. This service is absent in our country.Telephone ( supple) BankingIt includes the banking through using the Telephone operator whether public or private with wire or wireless. Its a form of e-banking that services the household who discombobulate no facility to access Internet and computer.Now phone and online banking in Bangladesh only offer services such as balance check and request for statement. But the nomadic banking bring home the bacons fund transfer, paving the way for silver transaction through cell phones across the countryText phone (SMS) BankingMany of the national and transnational banks clear introduced this service to allow customers with schoolbook phones to check their balance, pay bills and transfer gold.ONLINE BANKING Products Services ofDifferent banks in Bangladesh eastern Bank Limited conviction calling cardThe brand name of commendation card of EBL is Simple ac honorable mention vizor. The basic features of EBL credit cards are its free for its clients for all time, it can be used for balance transfer, mobile alert facilities, it has world wide acceptability, Immediate cash ad vance service, lay on the line assurance program, convenient payment option and global emergency aid service and so on calculate control boardEBL has introduced the account post horse for the savings Account holder who can use it to meet immediate engagement if he/she has enough balance to his/her bank account just later on going to their standard atmosphere booths available with its each branch and sacramental manduction with others.modus vivendi beleaguer and Cool CardThese card game are introduced only for the students for a soft condition but having a great exposure. send for BankingEBL Providing Phone Banking facilities to its clients as a part of online banking facilities.SMS BankingEBL uses the SMS Banking to provide services to the grass-root level customers. present a dogged SMS code is fixed for each specific service.capital of Bangladesh BANK LIMITEDPhone BankingThe DBL has brought a great change in Phone Banking. Now this facility is getting so popularity.I nternet Banking each its cash dispenser booths as well as branches are connected through Internet for which the any information among branches can be transferred within a moment.SMS BankingThe DBL is using the SMS Banking to provide services to the grass-root level customers. Here a fixed SMS code fixed for each specific service.International CardIts a card which is accepted World-wide for Purchase Cash Withdrawals. Its a great service for its customers. debit entry CardIt has been providing calculate Card facilities to its customers who can meet their money withdrawal fields at any ATM booths of its own operated or sharing with others to provide the security of its clients money. citation CardThe Dhaka Bank has been providing the consultation Card facilities to its customers liaison. Its named as Dhaka Bank indorse Credit Card. impudence BANK LIMITEDCredit CardThe Trust Bank uses the VISA Credit Card for Local, International and Dual Currencies. Its one of the banks personal banking services.debit CardThe Trust Bank uses the Trust VISA-Electron Debit Card for local, foreign and dual currencies. It is one of the banks automated services to the customers.Phone BankingIt has such services for its customers.Internet BankingIt deals all the foreign transactions through the Internet Banking.SMS BankingIt deals with the grass-root clients through providing the SMS Banking services.DUTCH-BANGLA BANK LIMITEDBangladesh Bank info shows that there are close 600 ATMs in the country. The quash was less than 300 a year ago. Currently, Dutch-Bangla Bank Limited has the largest network with 260 ATMs, with up to 12 new booths coming both month. Thirteen banks can use DBBL booths. Besides, the bank has an concord with Q-Cash, allowing ATM cardholders of moneymaking(a) Bank and Trust Bank to take cash from the said(prenominal) booths. Also, Dutch-Bangla Bank clients can use all Q-Cash outlets. The bank has a similar reconcilement with E Cash that runs 24 booths a cross the country. Now a day, they are providing truly Online Banking.Credit CardThe Dutch-Bangla Bank is only the bank which has more than ATM booths than any other banks operational their strain in Bangladesh. The DBBL-Nexus Credit Card is one of the medium which it permits to withdraw a certain limits of money from its booths.Debit CardIt is another(prenominal) product through which the Card holder is able to withdraw the money amount from his/her account. Its known as the DBBL-Nexus Debit Card.Phone BankingThey are very successful with the Phone banking (Telephone and Cell Phone).Internet BankingAbout 80% of their e-banking is based on the internet Banking.SMS BankingThey also cast SMS banking for the clients who are out of the Internet connection and they can have access to get the immediate service with just an SMS.ARAB BANGLADESH BANK LIMITEDDebit CardAB Bank uses the AB Bank Visa Debit Card.Credit CardThe name of AB Banks Credit Card is the AB Bank VISA EASICredit Card. Phone BankingIt uses phone banking as part of e-banking to run its online banking transactions.Internet BankingThe bank provides this service to its customers with a little limit.Western labor union money TransferIt is also the member of Western Union Money Transfer for which its able to transfer money from one country to another within a moment.BANK ASIACredit CardThe name of the Bank Asias Credit Card is Bank Asia Credit Card MasterCard.Debit CardThe name of the Debit Card of this bank is Bank Asia Debit Card. unstable BankingIt uses active banking as part of e-banking to run its online banking transactions.Internet BankingThe bank provides this service to its customers with a little limit.SMS BankingIt uses the SMS banking to deal with its grass-root clients.BRAC BANK LIMITEDMobile BankingIt uses Mobile banking as part of e-banking to run its online banking transactions.Internet BankingThe bank provides this service to its customers with a little limit.SMS BankingIt uses the SM S banking to deal with its grass-root clients.Debit CardThe name of Debit Card of the BRAC BANK is BRAC Bank Debit Card. Its allowed for the customers who have only the savings account and can withdraw only the amount belongs to its account balance.Credit CardIt introduces the 0% Credit Card named BRAC Bank Credit Card MasterCard which is doubtlessly an exclusive offer to all which is applicable for first 3 months interest free for all retail purchases. It charges no interest for balance transfer. It also allows 10 more supplementary cards for all the relatives.HONGKONG SANGHAI BANKING CORPORATION (HSBC)Credit CardAlthough a limited number, a short listed Credit Cards are using by a a couple of(prenominal)er Bangladeshis who have a strong Credit worthiness. It permits a certain limits to withdraw beyond ones balance.Debit CardIts using very much in Bangladesh. A number of ATM booths are available in Bangladesh including Dhaka and Chittagong.Mobile BankingIt uses Mobile banking as part of e-banking to run its online banking transactions. But its not applicable in Bangladesh yet.Internet Banking apiece and every branch of the HSBC is connected through the internet and around 80% of their e-banking is based on the internet Banking.SMS BankingThey also have SMS banking for the clients who are out of the Internet connection and they can have access to get the immediate service with just an SMS.STANDARD CHARTERED BANKCredit CardIt permits to use the Credit Cards to its customers.Debit CardThe customers are using Debit Cards and having great facilities with international bank.Internet BankingMost of the services of this bank is operating through the Internet.Findings AnalysisINDEPTH SWOT ANALYSIS(S)TRENGTHSDiversification These ten banks offer divers(a) online banking services as to attract the customers of different groups of people.Lower cost advantage As the banks realise in bulks of customers, their operational costs go down.Multinational merchandising cap abilities existence global bank, HSBC and Standard Chartered Bank enjoys the multinational marketing capabilities. They have been successful in attracting savings of savers and investors and lending a large the great unwashed of loans with the help of their online banking facilities.Start-up may take time In order to take for a banks online program, we will probably have to provide ID and sign a form at a bank branch. If the bank is satisfied after proper scrutiny, the bank will permit us to start internet banking which may take a few days.(W)EAKNESSESCentralization These banks managements are loosely centralized follows top-down approach, decisions come form corporate branch and sometimes it takes much time to get the approval for credit card, where it could have been make meteoric. Since, Its combative market, competitors can take this fortune to chance upon beforehand of it. manual(a) works Although the banking system is computerized of the banks simultaneously records are kept manually for auditing purpose, such as using rubber chop, giving signatures, writing on forms etc. Therefore, these manual works destroy the value that the organization created significantly.Costly comfort most of the banks online banking facilities are somewhat costly. As a result they are yet to be succeeded to bring a large number of customers chthonian the umbrella of E-Banking.(O)PPORTUNITIESMany untapped regions over the country Banks can attract even more customers by expanding its branches to other districts or regions and at the same time ensuring online banking service in Bangladesh, and thereby increase their market dole out profitability.Innovation Banks innovative online banking products would be able to satisfy various customers needs thereby would be able to reach different target segments.Credit Card Facility At present, a particular segment has a potential demand for credit cards, so the banks can utilize this opportunity to chase after that particul ar segment before any of its competitors do. Although few banks already providing this facility, but the demand is still there as the brisk facility is not sufficient comparing to the need.(T)HREATSDuplication of the HSBCs service Existing multinational local banks could copy the banks fiscal services, so they have to move ahead of others immediate.Emerging Competition New local and multinational banks or other financial institutions could emerge as the banking industry in Bangladesh is still growing, and become a threat to the existing online banking service providers.Political instability As Bangladeshs political situation is unstable it affects banking industry as well. So, it means the banks may face fluctuating demand for their products too.Security System used by the BanksMost of the lading banks follow the following security system for their online banking. software packageOnline banking service of these banks employs the 128-bit Secure Socket Layer (SSL), which is one of the strongest encryption technologies most unremarkably used by large-scale online merchants, banks, and brokerages worldwide. entirely online sessions between customers and the banks are defend by up to 128-bit encryption, which best protects customers information against disclosure to third parties.TPII software operates on the UNIX platform, which is known to be the worlds most secure and redundant operating system providing multiple users and multiple tasking facilities and Database is maintained in Oracle (RDBMS), the worlds most secure selective informationbase system.Encryption is used to protect informationEncryption is a method of scrambling customers information to protect its transmission across the Internet. Encryption transforms data into an unreadable form, and decryption reverses that process. Both encryption and decryption require the use of a special code, usually referred to as a key. The encryption of data provides a strong degree of protection against tamperi ng while data is moving through the Internet. Cookies are not used for this serviceA cookie is information that a web site puts on customers severely disk that it can remember something slightly customer at a later time. This mechanism allows the server to store its own information about a user on the users own computer. These ten banks do not use cookies for this service.ATM Hardwarea) Racal brand 128 bit Host Security Module (HSM) through which card information is encrypted, decrypted along with PIN generation. This turn of events is used worldwide to maintain and relay highly secure information as an exchange platform. After HSM has verified and authorized the PIN and decrypts it, customers retrieve funds from ATM. The HSM is also responsible for generating ATM Card PINs for the TPII.b) Each ATM has a built-in 64-bit encryption device for ensuring maximum security during transactions.c) one-third different ATM models are currently in use. They are the 1064ix (stand-alone AT M), 1071ix (Through-the-Wall ATM) 1072ix (Through-the-Wall) models. Each of the ATMs can capacitate up to four cash cassettes, of which, each one may hold up to 2,000 cash notes. Cash loading in ATMs are based entirely on usage frequency of the machines.d) All ATM booths have 24/7 CCTV surveillance systems to keep records of transactions taking place for a period of over one year. Moreover, each booth has a hot-telephone link affixed for troubleshooting and instant help-desk services.Problemsof implementating online bankingInfrastructural deficiency WEAKNESSTo implement online banking in our state, the infrastructure is necessary. For this we need availability of electricity supply and telecommunication. Without ontogeny these we cant develop this online banking system correctly.Budget allocation WEAKNESSThe software is falsify intricate to develop because e lacking of apposite in-house. In this regard, banks are to rely on software developing concerns at extreme costs.HackersTh e hacking, the serious crime of computer causes the injury and hazard to the security and safety of users of computer involved in online technology. As a result, hackers are the influential troubles of users of online business of a bank. Online banking services will not be feasible for an sparing as most people are illiterate. They are beyond the mise en scene of normal banking service. Micro-credit industry is now not only providing small credit but also mobilizing savings.The big problems are in the regulatory exemplar WEAKNESSLack of full convertibility. Bangladesh citizen cannot have access to the world wide online banking service due to regulatory restrictions.The reserve position will not allow free inter-country fund transfer.Risk THREATThe credit information available for banks is a great deal wrong, so it is very difficult to check whether the customer has difficult on a card issued by another bank. A data bank is required to see the list of the defaulters. More unconve ntional banks fill that rift in the market, trying to grab a share of the internet money, on the premises that they represent the richest and most educated part of the population.Privacy other central issue to the consumer is privacy. Database marketing is nothing but the manipulation of data over which customers feel that they want to have some kind of control. The customary rule is that consumer privacy rights should be respected. Individuals should easily opt out of online marketing as an extension of their right to be removed from junk spot lists.Unemployment THREATOne pre-conceived widespread idea is computers will displace labor. This is a matter of empirical study. Productivity and profitability are closely interrelated terms. The undergo excess staffs can be easily absorbed in to the expanding financial market. The unemployment will only be structural unemployment since the displaced labor will sooner have later acquired the necessary computer skills and thus become more efficient.Cost-effectiveness WeaknessAnother misconception is that it is not cost effective. None of the banks that have designed properly on automation plan and implemented it with proper cost value analysis became less superior. Actually the acceptance of financial novelization is a matter of vision to the future. Unless computers become cheaper and online facilities become within the reach of shopping mall class, they will remain unfamiliar with internet, and will thus avert them.Role of GovernmentThis is particularly important for countries like Bangladesh where very little has been do in development these technologies and skills to promote and support online banking. The government can take the following policies to promote online banking in our countryThe intergovernmental agreement for harmonizing the rules and regulations that can help in smooth transformation of the world economy and expansion of a unified world market.The regulations should simply parent competition, protect intellectual billet and privacy, and prevent fraud to do businesses under whatever terms they agree upon. An international uniform commercial code is needed to simplify and come on electronic commerce under consistent rules and rights.Govt. can undertake improve initiatives to construct feasible, platform of information technology within affordable capacity. monetary allocation should be more widen for global standard banking technology. tolerable number of bank employee will have both computer and banking skill and cognizance, suitable in the banking perspective to improve the banking sector.Tele-communication sector is pre-conditions to make high-speed online banking services. Unfortunately a tale-communication service of govt. is yet to reach to remote and inelegant area.RECOMMENDATIONSThese banks should Do frequent marketing researchThe management of the banks should securenessly pass out marketing research activities in order to keep a regular track of satisfa ction levels. As customer expectations and satisfaction are not static figures regular research at sufficient intervals should be conducted. wait complains effectivelyThe banks should actively manage the complaints of various customers and encourage customers to give feedback about the services. The management should collect document complaints use that information to identify dissatisfied customers, correct individual problems where possible and identify common service ill points.Focus on segmentation strategiesThe bank should concentrate on the various demographic segments that are currently not very satisfied with the banks services. Products services should be tailored for these segments. Appropriate research and surveys should be designed to assure out the requirements of these dissatisfied segments.Do Relationship MarketingThe banks should focus more on existing customers in order to build strong and trusty relationship with them as the survey showed that satisfied custome rs more aptly or certainly recommends the bank to friends and relatives. Thus the power of relationship will foster Positive Word of Oral Communication and will attract new customers at a lower cost.Establish more ATM boothsFrom the survey, it is clear that customers are not very happy regarding ATMs locations. So, sufficient number of ATM booths should be established in different location to reach out the customers even further and thereby satisfying their demand.Introduce Credit Card FacilityWhile handling customers over the counter also over telephone, a certain demand for credit card facility was sight strongly. We think, if the banks introduce this facility, more customers will be attracted therefore, they will achieve greater market share.Reduce Manual works to minimumAlthough many of the ten banks do automation, still there are many things which are through with(p) manually in order to tract any errors or transaction, especially in emergency such as system failure etc. As a result, so much time is spent on this type of manual maintenance, which reduces value on delivering services. Thus, it hampers efficiency on delivering faster services.Educate customers in using Phone banking serviceA few banks have introduced phone banking service or automatic telephone banking (ATB) in order to fulfill general customer needs and queries quickly, without interrupting employees. However, customers seemed reluctant to use this facility due to fear of machine usage or obstacle in remembering the seventeen digit numbers.Introduce SWIFT supreme Banking culture, reducing dependence on manual service, should be in teemingness irrespective of govt. and non-govt. organization in association with SWIFT to bring about the whole banking service for massive well being of people.Ensuring proper training to the employeesTraining should be imparted to the existing IT personnel. the new recruits for IT personnel should be provided with germane(predicate) education background.C onclusionOnline Banking sets off the journey with a mission of gain to target group of people across our country. The globalization facilitates the extinction of littered and troublesome services in order to consolidate the very variegated, faster as well exquisite services to keep the people in regular touch of modernization. Considering this decision, banks and financial concerns took some welcome move recently. normally all private owned banks from abroad coupled with a few local banks in collaboration with domestic support launched the trend of on-line(a) banking. The completely refurbished banking sector stresses effort to spread this culture of banking.In this connection, only a few banks establish the timely steps by eradicating all sorts of strains and inconvenience in all respect. Since the financial services needs to be very optimum certain not scattered to foster the impression and reliance of people over banking sector. Thereby, the very exclusive and classic service procedure can be accommodated amidst of integration of joint collaboration with modern system. Alongside, the existing banking sector pays much heed and concentration to the fastest issue and development of Online Banking System. In this regard, Bangladesh is still in the backseat whereas the rest of the world is importunate in flame of excellence at large. Despite the ascendancy of overwhelming constraints, inconsistency that engulf the origin of the online trading, we are extremely aspiring and scarlet of prompt and illustrious development of online banking as rapidly as possible.Therefore, the banks should move ahead of its rivals by applying the recommendations provided above. Certainly, it will help reducing the gap (or dissatisfaction) retaining existing customers. And, once this dissatisfied customers become satisfied, it will not only help to retain existing customers, but it will also help to drag new customers through positive word-of-mouth communications. Also, it wi ll help to attract new segments with different needs. Many customers are dissatisfied due to some areas of incompetent services. So, in order to sustain in the highly competitive banking industry, the banks should take

Leadership In The Small Business

Leadership In The midget BusinessLeadership is virtuoso of the important factors for the option and success of entrepreneurial ventures. During the second half of the twentieth century, thither were a lot of literatures about leading emanating from the United States. However, these researches primarily foc utilized on the leading in large companies and organizations. How relevant is the picture for dispirited and medium transaction? Does the experience or littleons of large companies and organizations on attention change to the slight and medium billet? These questions withstand eviscerateed more vigilances cod(p) to the study of the baseborn and medium transmission line concern.The interpretation of the sm any last(predicate) concern varies in diametric countries and level off in different industries. But the belittled business sector organisation holds an important position for the suppuration of domestic providence and compensate the global econom y. Therefore, it is essential for scholars on focal point to study the leading in the dwarfish business. The purpose of this adjudicate is to learn the immensity of leading in the belittled(a) business in order to provide somewhat suggestions for the grim business on leading.There be six parts in this audition. The first part is a brief introduction consisting of the constitution signifi understructurece, the writing purpose and the structure of this essay. The second part of this essay go out familiarize the lead and its functions. The essay will introduce the dainty business and its features in the third part. The main part of this essay is the fourth part, where the importance of leadership in the venial business will be testd, including the leadership in minute business and the signifi basince of leadership in the abject business. And the twenty percent part will provide some recommendations to leaders in runty business for bringing a success to their accept companies in the future. And a certainty will be do in the end.2. Leadership and Its FunctionsThis essay will represent some relevant goledge about leadership and its function in this part.2.1 The definition of LeadershipLeadership is angiotensin converting enzyme of the to the highest degree important factors for the festering of each community and organization. Lots of researchers on entrepreneurship use the terms management and leadership interchangeably. However, the leaders and managers atomic number 18 non of exigency the same (Johnson, 2013). And according to Johnson (2013), the main distinction between leaders and managers atomic number 18 that the leaders stomach some remarkers they give the axe inspire to action, only the managers withstand some visions that they preempt allocate. Therefore, the leadership understructure be regarded as a process by which the leaders take some measures to bring the thoughts, attitudes and behaviors of early(a)s (Mills, 2005).2.2 The Types of leadership styleDifferent types of leadership styles exist in the impart environments. And each leadership style has the advantages and disadvantages. And the socialisation and goals of an organization be the dickens important factors to determine which leadership style is appropriate for the society or organization best (Johnson, 2013). In the following, this essay will introduce the leadership styles in a vague and general way. The leadership styles include the individuality leadership style, the autocratic leadership style, the participative leadership style, the transactional leadership style, the transformational leadership style, etc (Goleman, 2000).The individualistic leaders often allow their employees to work by themselves. And some judgment of convictions the managers do not turn over enough control over their work and their muckle (Taleghani, Salmani and Taatian, 2010). The laissez-faire leaders will give complete freedom to their e mployees to do the work. However, in the autocratic leadership style, the leaders have complete former over their employees and the employees have some opportunities to switch suggestions (Travis, 2013). In the transactional leadership, the employees will follow their leaders when their leaders distri unlesse tasks to them, and therefore, the transactional leadership focuses on the short-term tasks (Taleghani, Salmani and Taatian, 2010). Whats more, a transformational leader assumes more attention to the employees higher carrys, such as fulfillment or dependableice (Travis, 2013).2.3 The functions Significance of leadershipSince leadership plays an important mapping on the success of companies and organizations, the functions cannot be belittled. The leadership functions are related to with the functions of leaders management. The leaders have to set the goals for companies, motivate and inspire their subordinates, take plans for companies for more profits, and this essay will test the functions of leadership from these perspectives.2.3.1 To wear out company cultureOne of the functions of leadership is to create and develop company culture. The employees may dress as a team or perform as individuals. If the companys tasks requisite co motion between employees, the leaders should implement some measures and suck in relevant policies to befool employees to co ladder with each separate, under which circumstance, the cooperation will become one(a) depict aspect of company culture.2.3.2 To ensure the effectiveness of group- sweatBy management, the leaders should intend the authority to take measures to throw away employees to contribute the maximum energy and time to jobs and the achievement of objectives of the companies (HubPages, 2013). Meanwhile, by management, the leaders can ensure the availability of imagingfulnesss and perk up sure that the resources can be used to the largest extent.2.3.3 To view plans for the companiesThe leader s and employees need to aware of the schedule and their own responsibilities to complete the achievement, and then the leaders influence plans for the company to ensure that the company can gain more achievement.3. itty-bitty Business and Its featuresThis essay has introduced the definition and functions of leadership in the second part. Simultaneously, the former studies on leadership mainly focus on the large enterprises. Therefore, it is really important for researchers to analyze the leadership in the menial business. Before this, this essay will mainly introduce the minor(ip) business and its features in a vague and general way.3.1 The definition of teentsy businessIn abidance with the United States Small Business formation Office of Advocacy, more than 99.5% of all U.S. firms are pocket-size business (Cooper, 2013). Although the definition varies from indus fork over to industry and is different in different countries, the gauzy business refers to that the firms are with slight than d employees in general issued by the United States Small Business Administration Office of Advocacy (Cooper, 2013). In Australia, the gnomish businesses unendingly refer to the companies with less than 100 employees (Gray, Densten Sarros, 2003).3.2 The history of littler businessIt is reasonable to gain the conclusion that the slender business holds an important position for the victimisation of gross economy from the statistics issued by the United States Small Business Administration Office of Advocacy. And since the definition of small business varies from country to country, and therefore, the history of small business is as well different in different countries. For example, the origin of small business can date bandaging to the 17th century in the USA (U.S. section of State, 2013). And in China, the origin of small business can date back to the 14th-15th century. In one word, the small business has a long history.3.3 What are the features of small b usiness?In order to analyze the importance of leadership in the business small business, the researchers should bring about acquaintance with the features of small business. Firstly, generally, the business owners always are the leaders of the companies or organizations (Vitez, 2013). The business owners have to develop plans and set goals for the companies and organizations (Vitez, 2013). Secondly, due to its sizing and investment capitals, the small business always have throttle resources and low-end technology, so it is difficult for the small business to manage with large enterprises and nevertheless the medium business. According to Vitez (2013), the operational management is one the just about important parts for the small business management and due to the size, the small businesses are easier to break.3.4 The circulating(prenominal) issues on management faced by small businessSmall businesses always are confronted with lots of problems related to their size and cu rb investment technology. This essay will mainly analyze the current issues on management faced by small businesses. Firstly, because the small business owners must be the leaders of companies or organizations, the business owners have to pay more attention to the needs of their company on talents, the establishments of companies goals and other works, and due to the limitation of energy, the management of small businesses may be into chaos. Secondly, because of the limited capitals, it is difficult for small business to adopt the newest technology, so they may adopt lower-end management technology. The above-mentioned contents excessively can illustrate the necessity to update the leadership in the small businesses.4. The Importance of Leadership in the Small BusinessThis essay has introduced the functions of leadership and the features and the current management issues of small business. In this part, this essay will analyze the importance of leadership in the small business. An d at first, this essay will represent the leadership in the small business, where the features of leadership in the small businesses compared with big and medium size enterprises.4.1 Leadership in Small BusinessDue to its size of small business, the owners of the small business must be the leaders of the companies or organizations and the small business is easier to operate. There are some distinctive features of the leadership in small business. Firstly, the owners of the small business always provide the mission, values and goals for the small business (Vitez, 2013). And the owners should run the company and lead other employees to achieve the goals of company. Therefore, the leadership in small business demands the owners of small business to work by means of employees, not around them (Vitez, 2013).Secondly, the owners of small business also should attach importance on the benignant resource needs of their own companies or organizations. The enlisting of employees holds a key position for the development and expansion of all(prenominal) company and organization. Therefore, the leadership in the small business also requires the owners of the small business to lead the employees. Different from the human resource management, the owner of the small business should instantly understand the current job securities industry and the salary stock(a) for different job positions (Dalglish, 2003). Meanwhile, the owner also should train new employees directly (Dalglish, 2003). Thirdly, the owners of the small business often are the leaders, and therefore, there are few other leaders in the small business. As a result, distant the leaders in the large companies or organizations, the leaders in the small business should make decisions on the development and expansion on their own (Dalglish, 2003). Whats more, unlike the large companies or organizations, the owners of the small business should pay attention to the cash electric current, paying bills, collecting m oney from customers. Simultaneously, the owners of the small business should make decision in accordance with the accounting information. All in all, the owners of the small business are also the leaders in the small business. opposed the leaders of the large companies and organizations, the leaders in the small business should make themselves acquaintance with business kat onceledge in various fields.4.2 Significance of leadership in the Small BusinessIt is reasonable to gain the conclusion that the leadership in the small business is very important and significant from the abstract in the prior parts. In this part, this essay will mainly analyze the significance of leadership in the small business from some perspectives.4.2.1 To supporter the Small Business to Win the Competition in the MarketWhen researchers analyze the development and survival of the small business, they often attach importance on the entrepreneurial activity as a strategy to offset stinting deterioration bro ught about by globalization. nether the circumstance of globalization, the small businesses are in an increasingly competitive market (Bolden and Terry, 2000). For example, in the study made by Centre for Leadership Studies, all the interviewed small businesses held the opinion that when they operate in the global market, they must gain competitive threats in every direction (2000). However, adept leadership can second the small business to win the controversy in the market because they the good leadership can make appropriate strategies to develop and inveigle more talents to work for them. On the contrary, if the leaders in the small businesses make inappropriate or injure strategies to develop their business, they may blend the competition in the market and even go bankruptcy (Ingram, 2013). For example, the Apple Inc was a small business, and even just a workshop at the beginning and now has become a well-known high-tech company due to the management of Jobs Stevens. In on e word, the leadership can enhance the small businesses to win the competition in the market.4.2.2 To Manage ChangesBecause continuous organizational change is essential to guarantee the development and survival of the small businesses (Bolden and Terry, 2000), if there is no change misadventure to the small businesses, they may go backwards. Simultaneously, the organizational culture of change can be considered as one of the most important factors to the development and survival of the small businesses (Abbas and Asghar, 2010). As a result, the main task for the leaders is to develop an organizational culture of change deep down the organization. Whats more, if the leaders do not have the ability to develop the culture of change within the organizations and companies, the small businesses cannot adapt to the changeable environment. Due to the development of the globalization, there are more changes happening to the market for the small businesses, for example, the introduction o f technologies, the competition from the international companies and the increase of encyclopedic talents, etc. Therefore, the leadership is very important for the small businesses to manage changes within the organizations and outside the organizations.4.2.3 To Overcome the Current Restriction, Barriers and WeaknessesAccording to the study made by the Centre for Leadership Studies (2000), the increasing level of legislation and regulation are the main barriers to offset and competitiveness by the leaders in the small businesses, especially the leaders in the manufacturing industry (p.14). Due to the increase of the small businesses in the market, the governments issued some policies and regulations to specify the development of the small businesses, which can be regarded as one of the main current restrictions. Meanwhile, due to its size and scale, there are some their own defects for the small businesses. For example, the location of the small businesses may be more distant from the markets compared to the large companies or organizations, and the small businesses cannot attract more talents like the large enterprises because the small businesses may have break dance reputations. Therefore, the leaders in the small businesses should take some measures to overcome the current restrictions, barriers and weaknesses.4.2.4 To Deal with the Potential Threats and ChallengesThere is a wide agreement that the small businesses are confronted with some potential threats and challenges, such as that it is difficult for the small businesses to acquire more advanced technologies and more qualified staffs to work for them (Chen, 2006). Meanwhile, because the small businesses may not have disclose reputations and cannot provide higher salaries to the employees, the small businesses can not retain existing employees (Bolden and Terry, 2000). Meanwhile, the financial factor is also one of the main threats and challenges for the small businesses due to the shortage of cash flow and the threats of bad debtors (Gartenstein, 2013).Whats more, due to the limitation of capitals and staffs, the small businesses may have no money and energy to spend on innovation, which may cause them to fail the competition in the market. As a result, one of the main tasks for the leaders in the small businesses is to see with the potential threats and challenges. Thus, the good entrepreneurial activities can help the small businesses to transfer the potential challenges as the strengths for the small businesses.4.2.5 To prove Company AdvantagesAlthough there are some limitations and challenges of the small businesses, the small businesses also have some advantages, such as that the small businesses are easier to operate (Vitez, 2013). Moreover, the owners of the small businesses attach importance on the relationships between customers and make every effort to understand the supply and demands in the market. The other perceived strengths of the small businesses include t hat the small businesses is flexible to response the change in the market and have the ability to make their own decisions. Whats more, the staffs in the small businesses can interact with the senior directors and managers directly (Bolden and Terry, 2000). Simultaneously, all the employees in the small businesses know one another, which makes it easier to cooperate with each other. All of the above-mentioned contents are the advantages of the small businesses, and therefore, the good entrepreneurial activities can strengthen the company advantages.4.2.6 To make correct development strategies and the ways forwardNearly all the companies and organizations should make development strategies and plans aiming at company growth. And most of the companies always achieve the growth of companies through and through building the company and increasing the profitability (Williams, 2013). As a result, the companies should implement some measures to build the company and increase the profitabil ity. Under this circumstance, the leaders in the small businesses should make correct development strategies and the ways forward. However, some small companies do not have any correct development strategies. For example, in the study made by the Centre for Leadership Studies (2000), among the 12 interviewed companies, the leaders in the company 9 stated that this company did not have a documented strategy although they would like to become the most profitable company in the UK. Therefore, if the company wants to grow, it should maintain correct development strategies. On the contrary, the company 2 took a conscious decision on the commercial side and then gained more markets in the competition from other small businesses (Bolden and Terry, 2000).This essay has introduced that there are some challenges faced by the small businesses in the part 4.2.4. Some small businesses make strategies to deal with the challenges, such as that a number of companies make every effort to keep up-to- date technology (Taleghani, Salmani and Taatian, 2010). For example, the famous high-tech company in the USA, Apple Inc, was a small company at the beginning and now its products have been used all of the world due to the correct development strategies made by Jobs Stevens. Therefore, the leadership can enhance the small business to own correct development strategies and ways forward.4.2.7 To make appropriate HRM policies to attract more talentsAlmost all the companies considered that the staff as one of the most important resource although the small business generally employ less than a hundred people (BusinessBlogs, 2010). The number of employees in the small businesses is not insignificant but the appropriate human resources management policies and activities can help in streamlining the function of human resource of the small businesses (BusinessBlogs, 2010). Human resource can be the vital assets of each company. Therefore, human resource management can benefit every small busi ness. Generally speaking, a company in the small business mainly consists of less than 1000 employees, and the operation of the small business should obey the rules and regulations established by the administration. The appropriate human resource management policies may grant equal rights to employees (Buzzle, 2013). Simultaneously, the appropriate human resource management policies also can help in enlisting and motivation of best talents in the industry (Buzzle, 2013). Whats more, the appropriate human resource management policies can act as a guide for the small businesses to establish professional relationships with employees (Buzzle, 2013).On the contrary, the inappropriate human resource management policies may make employees disappointed. For example, a Chinese small company, Ganzhou JB Magneto-Electricity Limited liability Company has attached importance on the establishment of human resource management policies, for example, the leaders of this company adopts the differen tiation salary incentive tool to attract more talents (Yang, 2008). Therefore, the leadership is very important because the leaders can make appropriate HRM policies to attract more talents and employees.5. Recommendations to leaders in the Small BusinessThe prior part of this essay has introduced the significance of the leadership in the small businesses, and therefore it is essential for the leaders to improve the management strategies. Under this circumstance, in this part, this essay will provide some recommendations to leaders in the small businesses.5.1 To Communicate with EmployeesThe leaders in the small businesses should communicate with employees in order to implement leadership. The leaders should communicate take uply what they are doing and what they will do in the future (Wictor, 2012). The leaders can take netmail and written announcement to notice the employees. Meanwhile, the leaders in the small business can prepare and hold some meetings to make clear docket i tems and clear next steps to employees. For example, the Zappos Company always provides open earn to staffs. Whats more, the leaders should explain to staff about companys tasks and business and the people should not be managed without notice.5.2 To Believe in the EmployeesHowever, before communicating with employees, the leaders in the small businesses should debate in the employees because the employees in the small business should be noticed about the goals of companies. Whats more, if the leaders believe in the employees, the employees will have the opinions that they are serving for themselves. If the leaders believe in the employees, the employees will actively understand and fulfill the specific roles of their own (Smith, 2013).5.3 To Promote InnovationDuring the current society, the technology is very important for the development and survival of the small businesses, and therefore, the leaders in the small businesses should promote innovation. Firstly, the leaders in the small businesses should study people smarter than themselves (Smith, 2013). Secondly, the leaders should spend more time, energy and money promoting innovation. For example, the leaders can learn about the advanced technologies from large enterprises and even go aboard to introduce higher technologies into their own companies and organizations.5.4 To Try to Predict the ObstaclesNowadays, due to the development of the small businesses and the appearance of more small businesses, some authorities have issued some regulations and laws to slow the development of the small businesses. Meanwhile, the small businesses have some limitations and deficiencies, and therefore, the small businesses are confronted with some challenges and threats. Under this circumstance, the leaders should try to predict the obstacles and then to deal with these threats and challenges.5.5 To Make PlansThe leaders should make plans through taking time for a regular evaluation and analyzing the general and exact situation inside and outside the small businesses. The leaders should be good in crises so that they should not sit around to let crises develop (Dowell, 2013). The leaders should involve identifying potential problems and solving them before the crises develop go on and deep (McQuerrey, 2013). Meanwhile, the good leaders should analyze the plans and adapt the plans to new mass and opportunities (Dowell, 2013).6. ConclusionThe small businesses have different definitions in different countries and industries but in general, the small businesses have less than 500 employees in the USA. The small business has a long history and plays an important role in the development of domestic and international economy. However, the small business has some deficiencies and due to its size and investment capitals, the small business always have limited resources and low-end technology, so it is difficult for the small business to compete with large enterprises and even the medium business.And lea dership is one of the most important factors in the survival and success of entrepreneurial ventures. Thus, if the small business wants to achieve development, the leaders should pay more attention to the establish leadership and take more and better entrepreneurial activities because the leadership can enhance the small companies and organizations to win the competition in the market, to overcome the deficiencies, to strengthen the advantages and even help small businesses to make correct strategies. In conclusion, the leaders in the small business should believe in the employees and communicate with them in order to establish leadership in the small businesses.

The Iranian Revolution And Khomeini Ideas

The Persian Revolution And Khomeini IdeasThe Persian Revolution, as well c onlyed the Muslim Revolution took key in 1979. It marked events involving the expiry of Irans monarchy by bringing down the US- mainstayed Shah of Iran, Muhammad Reza Pahlavi. The revolution placed Ayotullah Rohullah Khomeini in accommodate of Iran. Ayotullah Rohullah Khomeini was the attracter of the revolution and changed Iran into in Islamic Republic. imaum Rohullah Al-Musavi Al-Khomeini, in short, Ayotullah Khomeini, was innate(p) on September 24, 1902. He belonged to a family that had religiously stiff traditions. They resided in Khumayn, located in the west of Tehran. When Ayotullah Kho meni was nineteen years darkened he went to study religious science where his education beneath nonable figures unc everyplaceed him to religious traditions, political activism and development. He excel conduct in a lot of subjects only if mastered ethics and philosophy. though he is widely k right offn as a revolutionary leader with a remarkable success in the political field, initi ally he was famous as a writer and a teacher residing in Qom. Qom had a status dignified learning center and rose as spiritual capital in Iran. His commonwealth of concern was devotional and mystical matters. But from spirituality and mysticism, he neer meant hearty isolation and political inertness. Instead he advocated energetic im sliceent expression on the socio-political frame. His life indicates that an Islamic revolution has its roots in spiritual and moral realm.During his early years in Qom, his activities were in line with the establishing Pahlavi commonwealth by Shah of Iran, Reza Khan. Reza Khan changed the monarchy in Iran into a totalitarian dictatorship. His study objective was to wipe out Islam as a cultural, political and social power. imaum Khomeini not only witnessed these efforts of Reza Khan directly but withal got news regularly from cities like Tabriz, Mashhad and Isfaha n. All this deeply affected him. In the later years Muhammad Reza, son of Reza Khan became the Shah of Iran and continued the exploitive docket regarding religious institutions. imaum Khomeini touched the political field for the first measure in 1941 when he gave a political public statement in his book Kashf al-Asrar. In 1962 Imam Khomeini became the leader of Qom. His aim became to fight back Shah at a epoch when not many an(prenominal) d atomic number 18d to do so. He announced his concomitant to religious institutions. For workout he lent his certification to students who were protesting against the permission to open liquor stores in the city. aft(prenominal) that he locomote towards matters of bigger significance. In October 1962 he united with the religious leaders balance-to-end the pastoral and vigorously protested against the uprightness suffering non-Muslim males and females to participate in elections to local assemblies. This imported in building an alli ance of religious scholars that would remain firm for the fundamental rights.In 1963 he confronted the Shah, who was trying to propagate re ricochets in economic and socio-political life if Iran. These efforts by Shah were designated as White Revolution. The White Revolution was a deceiving program constituted on six points. The real aim was to restrain the growing clerical regularize against Shah in Iran. Imam Khomeini made public a strong and voice slight declaration in which he denounced the Shah and his Western agenda. He accused the Shah of violating the constitution, spread morally defile objectives and compliance with USA and Israel. The Shah successfully got the clauses of this revolution authorize through a fake referendum on January 26, 1963. The measures taken under the stick of White Revolution were vaingloriously perceived by the Iranian companionship as a dictation by unify States. The intention was to append Shahs wealth and power and sustenance of US dom inance. Imam Khomeini denounced the revolution and overt the aims and objectives underlying it. He preached lectures from Fayziya Madrasa that had impact in the upstanding footing.On March 22, 1963 the Shah sent paratroopers who attacked Fayziya Madrasa resulting in the death of numerous students and ransacking of madrasa. It didnt throttle Imam Khomeini much. Instead it ignited an unprecedented struggle order against the blunders and wrongdoings of the regime. The attack was perceived as a symbolic action viewing the hostile attitude of the regime towards Islam and the ruthless expression towards Islamic institutions.After all these actions Imam Khomeini came out stronger. He kept denouncing the Shah and his regime. He damn the Shah for his authoritarian nature. He called him a puppet of United States and criticized his growing fellowship with Israel. On June 3, 1963 the afternoon of Ashoura (10th day of Muharram according to the Muslim calendar) he denounced the Shah by ca lling him a wretched miserable man and warned him to alter his miens early(a)wise citizenry will celebrate the day he departs from Iran. He was arrested be develop of that speech on June 5, 1963. This led to major protests for three days throughout Iran. There was disgust among the public against the regime and a shocking arise took place. In Qom, Shiraz, Isfahan, Mashhad, Tehran and many other cities well equipped troops of Shah trained by United States was confronted by defenseless demonstrators. It is estimated that some 15,000 pro-Khomeini protesters were killed by the Shahs forces in these protests. This ascension acted as a fulcrum in the struggle against the regime. Imam Khomeini became a national leader. He became an aspiration to the whole nation to stand against the Shah and the inappropriate supporters backing up Shah. He provided a rational and uniform Islamic ideology. He introduced a political road map channelise by religious leadership rather than by the se cular parties.The uprising was curbed but the mass public and religious scholars could not endure the handle of Imam Khomeini. Demonstration continued all over the country and several(prenominal) religious personalities pressed on Tehran for his release. On April 6, 1964 the administration released him, number a statement that he has contracted to abstain from any action at law of political nature as a train for his liberation. This was later refuted by him. He carried on his condemnation of the Shah and his regime with more vitality.In October 1964, the Shah proven his submission to the US by granting legal immunity to the US personnel. This gave the US personnel the right to commit all offenses in the Iranian boundaries. It was unmingled now that the Shah was a puppet at the hands of United States. The Iranian Majlis approved this measure. On the very next day i.e. October 27, Imam Khomeini wrathfully denounced this and called it an outright attack on the independence and s overeignty of Iran. Imam Khomeini was now becoming a serious nuisance for the Shah and his foreign supporters. All efforts to intimidate Imam Khomeini into silence proved futile. Hence an feat to pulverise his beef up influence was made by sending him to exile. Therefore, on November 4, 1964 Imam Khomeini was arrested and exiled to Turkey. He stayed in Ankara for a while and than moved to Bursa. The Shahs regime was pressurized to allow Imam Khomeini to a better place than Turkey. The permission was given on October 1965 and Imam Khomeini moved to Najaf, considered by the Shii sect as a inc draw back city in Iraq. He took manse in Najaf for the next xiii years.On the other side, the Shahs regime set itself free from the pressure they were antecedently lodgeing and thought that the religious establishment of Najaf will overshadow Imam Khomeini. But they were wrong. Not only did Imam Khomeini created himself as a in effect(p) presence in Najaf but also kept maintaining his pop ularity and influence in Iran. His public statements concerning Iranian development were smuggled and circulated in the country. He intercommunicate the Muslim world and his messages were distributed in Mecca several times. He was visited by outstanding Iranian and Muslim religious figures from time to time during his years in exile.He was never forgotten by the people of Iran. His name and his cause lived in the Iranian people. He was an inspiration for numerous religious groups and scholars who carried on building the foundations previously situated by Imam Khomeini. Unaware by many foreign onlookers, an Islamic association of immense span and sharpness was make. It was understood that Imam Khomeini would light up as a leader and guide the Islamic Revolution taking place in 1978-1979. Though he was physically absent but he lived in the police wagon of the Iranian people and was an aspiration to them.On November 23, 1977 a tragic thing happened. Hajj Mustafa, Khomeinis elde r son, died unexpectedly in Najaf. He was assassinated by SAVAR, a US-instituted security police of the Shah. Imam Khomeini faced this grief patiently. This calamity provoked the Iranian public. People became rebellious and this rebel turned into a revolution.On January 8, 1978 a governance statement came labeling Imam Khomeini as an comp iodinent working for foreign powers. This invited a public outrage. Protests broke out in Qom which resulted in a capacious number of casualties. These series of protests combined the whole country in the revolutionary passion and continued till the spend of 1978. Imam Khomeini kept encouraging the steadfastness of the people and boosted them to attain their goal i.e. the demise of monarchy building of an Islamic state.The Shahs regime made another attempt to bring down the revolution by requesting the Baathist regimen of Iraq to expel Imam Khomeini from their country. The Shah thought this would destroy his base of operation and the revoluti on will lose its leadership. Imam Khomeini was never satisfied with the giving medications that hurl been ruling Iraq. He considered Syria and Algeria as a high-priced option but no Muslim country welcomed him to stay and carry on his political activity. In October 1978, Imam Khomeini went to France and took residence at Nauphle-le-Chateau, which is situated near Paris. The residence in France proved to be very beneficial for Imam Khomeini. The communication became easier, international media also jumped in and he was able to address to a global audience.In celestial latitude 1978, the month of Muharram also came. Demonstrations on a large scale took place in Tehran and other major cities aiming to overthrow the monarchy and replacing it with an Islamic state under Imam Khomeini. The Shah touched the extremes of brutality. The streets were flowing with the blood of thousands of slaughtered demonstrators, the people held in jails were tortured and abused, and the wounded were mass acred in the hospitals by the Shahs forces. United States, Israel and many foreign states supported this. It seemed like a holocaust but this time done by the Jews.Despite the unflinching US support the corrupt and homicidal rule of the Shah was taking its last breathes. A substitute governing body was made under Shahpur Bakhtiar and finally, the Shah left Iran for good on January 16, 1979.The public come out on the streets full of joy and happiness. People celebrated their victory. On February 1, 1979 Imam Khomeini returned to Iran and was welcomed by millions of Iranians at the airport. Throughout the revolution Imam Khomeini showed characteristics of juicy values Spirituality, self discipline determination, leadership, compassion, asceticism, erudition, sobriety, political ingenuity and hatred of imperialism. He was undoubtedly the teacher and director of the Islamic Revolution in Iran.In his lectures that were given in Najaf between January 21 and February 8, 1970, which were later combined under the title of Islamic Government (Hukumat-i-Islami) three key points come to surface.The pick out for founding Islamic socio-political institutionsObligation of religious personalities (the fuqaha)to construct and Islamic nationIslamic republic that takes self reform measuresImam Khomeini verbalise in his lectures that a society cannot be reformed alone on an make-up of laws. It is important that a power and an executor are present to ensure the law. That is why Allah Almighty not only provided an ordinance of law (sharia) but also gave a structure of regimen well supported by administrative and executive director institutions. The last Messenger of Allah is a practical example of such(prenominal) a government. He executed the institutions in the Muslim society. The illusionist formal the ordinance of law in Islam. This duty was later carried by the successors of the Prophet. It was the lead that someone continues executing the laws and establishing the Islamic institutions in the society. It is very important that on that point is some executor of the social institutions and the law. Legislation if alone couldnt do much good for the well being of humans.The executor, known as, vali amr, is responsible for implementation of the law and the courts verdict. He utter that the life of prophet is in itself a practical example of establishing an Islamic State. He express that the Prophet laid foundations of a government, apply laws, established Islamic ordinances, and administered the society. He appointed governors, judges and also worked as a judge himself. He sent diplomats to different states, chiefs and kings, completed pacts and treatise, commanded the military in battles. In a nutshell, he performed all the functions required in a government. He appointed his successor himself. This showed the necessity of a steadfast working government even after Prophet Muhammad departs from the world. Imam Khomeini state that the ratific ation of Islamic law was not limited to the times of Prophet. The Islamic ordinances are permanent and hold practical value till the end of times. The Islamic schema of government is not restricted to the old times. The task income system, economic system, social system laid down by Islam holds its relevancy till the end. A fully functioning government together with its administrative and executives bodies is compulsory. If the political system is repugnant to the Islamic teachings than such a system would result in tyranny, corruption, moral drain, anarchy and chaos.Imam Khomeini questioned the putting deflexion of Islamic laws to promote anarchy. He questioned the calling of Islamic Laws as old and impractical. Allah has not limited the genuineness of his of the laws He sent to earth. Imam Khomeini scarce denounced those who believe that Islamic laws dont hold their validity anymore. Imam Khomeini criticized the western tax system. He supported the Islamic system of through kharaj, zakat, khums and jizya. He said that those who do not support the Islamic system challenge the legitimacy and universality of Islam and the faith. Government was always considered a necessity during the time of Prophet and afterwards. Governments were made during the reign of Caliphs.Sharia provides us with sufficient proof regarding the motivating of a government in all times. Sharia is the embodiment of various(a) laws covering all aspects of a society. The laws in this system are a complete guidance of to meeting the needs of all humans, dealing the neighbors, other citizens, races, relatives, children, marital and personal life, laws regarding peace and war, foreign policy, diplomatic relations with other nations, laws think to trade, agriculture, commercial messageization. It gives guidance about the constitution of marriage institution, the right surgical procedure to contract it, the fostering of child in the womb, the responsibilities of the parents during the time the infant is nutritious and growing, the interaction of husband, wife, and the children. Islam offers a complete code of conduct for the humanity. It ensures virtue, morals and flushed economic and social relations.The ordinances and laws needed by man are all present in the Holy Quran and Sunnah. These laws will help in attaining happiness and making the state perfect. Imam Khomeini swore that the Quran has everything that a man needs. It is not possible to execute Allahs order without the formation of proper executive and administrative organs that would strengthen the establishing of a government. Imam Khomeini mentions some provender to substantiate his argument.The taxation system introduced by Islam is not meant to feed the myopic and needy only. They also build bases for establishing a grand government and bear the essential expenses for it. The example could be given of khums, which is a geek of tax, and acts as a source of revenue for the treasury. It is believed that khums is levied on all natural resources, commercial and agriculture profits in an allude manner. It applied to everyone on equal terms as they cod to pay one-fifth on their income that is surplus. This large income will serve the function of administering the Islamic republic and fulfilling its financial requirements. If this one fifth portion of the surplus income of Muslims is calculated, it will become evident that the dire of such a tax is not for the reason of feeding the pathetic and hungry but for a larger cause i.e. fulfilling the financial requirements of the government institutions and its important bodies. Imam Khomeini emphasized on establishing a government base on the Islamic taxation system which comprised of khums, jizya, zakat and kharaj. He said that the large budget provided by the income from khums, was for the reason of establishing a government that administered the Islamic domain. It was formed to fulfill the needs of people by providing the public with services link to health, defense, educational and economic welfare. Furthermore, Islam laid down principles for the compilation, safeguarding and disbursement of the income from khums. Any extralegal take over or embezzlement of this income is strictly forbidden. The head of state and government members do not practice any privilege over a common inhabitant when it comes to public wealth and income.Another type of tax is jizya, has been made compulsory for ahl adh-dhimma, and kharaj is imposed on land that is of farming(a) value. These two sources also add considerable amount of revenue. The forming of these taxes proves that it is necessary that a government and a convention exist. It is the responsibility of the governor or prescript that taxes is imposed correctly on ahl adh-dhimma according to their financial ability and income. The ruler should also fix proper taxes on their livestock and agricultural land. Kharaj tax is also imposed on the land that is in the owner ship of the Islamic republic. In order to implement these taxes laws should be established, institutions should be built, and administrative bodies should be working. Otherwise it would be impossible for such taxes to be carried out. The in agitate of the state is responsible for carrying out these taxes honestly and aiming them for the larger good of the public.The rules relating the safeguard of the Islamic defense and order of the territory and the freedom of Islamic nation also calls for the establishment of a government. It is said in the Quran bring in against them, whatever force you can mustinesser and horses tethered (Quran 860)This shows that a well equipped defensive Muslim force should always be ready and vigilant. It should be alert even during peace. Imam Khomeini said that if Muslims had acted on this verse a strong government would go through been formed and preparations of a war would turn in been made beforehand. A small bunch of Jews would not have even though t to take over our lands and destroyed musjid al-Aqsa. If the Muslims had fulfilled their responsibility of carrying out Gods orders and laws, and established a respectable and innocuous government than all this would not have taken place. If the leaders of Muslims are true representatives of Gods laws than they would overcome all their differences and unite together as one. A bunch of Jews couldnt harm us then, even if they get all their support from US and other foreign countries. As it is said in the Quran, conjure against them, whatever force you can muster this means that we should be well-prepared and strong and ever-ready against the subjection that the enemies will try to cause us. Unfortunately we are bat in preparedness, strength and unity and thats why we are suffering at the hands of foreign flagitiouss.There are a number of conditions of the law that are not possible to be imposed unless a government is established. The example could be given of blood money, which is used to support the merit and physical penalties laid down by the law, which have to be administer by the ruler of the Islamic state. These laws and ordinances remind us the necessity if a government and strong institutions that have the power which makes them capable to perform these functions in the best way.After the death of Prophet the Umayyads went against Ali ibn Abi Talib and started to cause instability in the Islamic state. They moved away from the formation of a government that has been ordered by God Almighty. They changed the basis of the entire government. The policies they introduced were in contradiction in terms to Islamic laws and ordinances. The Abbasids and Umayyads pursued anit-Islamic administrative and political policies and established a government that was against Gods teachings. The government they established later on converted into a complete monarchy. Their government was just like the governments of Roman emperors, Egyptian pharaohs and Iranian k ings. Imam Khomeini called them non-Islamic governments that have been carried on to the future.Both the law and logic tell us that such anti-Islamic and non-Islamic governments should not be permitted. The reasons are very clear. In a non-Islamic form of government the orders of Islamic politics couldnt be implemented. Imam Khomeini said that the non-Islamic forms of government are the system made by the infidels ( kaffir). It is the responsibility of every Muslim to eradicate all the traces of such a system from their society and choke them. It is our responsibility to create a social atmosphere that ensures the education of individuals who have faith and virtue. But such an atmosphere is in total contradiction with the rule of the infidels and their illegal power. Imam Khomeini said that the corruption is Iran is the result of the kafir mode of government. The corruption has to be swept and the culprits should be caught and hanged. He related this corruption to the corruption o f the pharaohs in Egypt. It is not possible for a faith-practicing, religious and just Muslim to survive in such a socio-political situation. The condition leaves the individuals with two choices. Either he submits to the will of kufr and betrays God or he refuses to commit the acts that the kufr commands and stands against him to destroy the corrupt system. Being true Muslims we have no choice but to destroy the form of government that is full of corruption, tyranny, treachery, oppression and crimes. This is the obligation of every Muslim of the world, a duty he must accomplish to ensure the political Islamic revolution.The domineering and imperialist rulers have segregated the Islamic land. They have divided the Islamic umma into numerous segments and more or less created detached nations. The imperialists of Austria, Russia, Britain and others divided the great pull Empire. This happened partly because of the incompetency and corruption of the rulers of the nance. They took a wrong step y following the system of monarchy. The Ottoman Empire was a threat to the evil imperialists. They were afraid that righteous men will rise up and take control of the state and destroy the imperialism to its roots. Therefore after World War I the imperialists divided the Ottoman Empire into fifteen small states. The imperialists started controlling them with the help of their agents.Imam Khomeini said that if we want to unite the Muslim umma, if we want liberate the Islamic land form the claws of imperialists, if we want to overthrow the puppet governments than it is crucial that formation of a government that is in accordance with the Islamic laws and ordinance takes place. The establishment of such a government will safeguard the disciplined Muslim unity. He quotes the address of Fatimat az-ZahraThe Imamate exists for the sake of preserving order among the Muslims and replacing disunity with unityImam Khomeini revealed the evil deeds of the imperialists by saying that the imperialists have appointed their political agents in the countries. They have imposed an economic system full of injustice. As result the people are divided into two distinct groups oppressors and oppressed. The oppressed are deprived of the basic necessities of life while the oppressors enjoy the all the wealth through corruption and tyranny. The hungry oppressed people have well-tried to cut loose their chains from the cruelty of the overlords and their struggle has been going on till today. But the ruling class and imperialist government structures have hindered their way. It is our responsibility to rescue the deprived and oppressed. We should confront the oppressor.Imam Khomeini said that it is an obligation for Islamic scholars to thrive against the oppressors and let the not succeed in establishing a monopoly on the wealth resources. The Islamic scholars should fight for the masses and to save them from thirst and deprivation and stand against the oppressors usurping the wealth of the people. He quotes the following sayingI swear by Him Who causes the seed to open and create the souls of all sustentation things that were it not for the presence of those who have come to swear allegiance to me, were it not for the obligation of the ruler-ship now imposed upon me by the availability of aid and support, and were it not for the pledge that God has taken form the scholars of Islam not to remain profound in the face of gluttony and plundering of the oppressors, on the one hand, and the plow hunger and deprivation of the of the oppressed on the other hand were it not for all of this, then I would abandon the reins of government and in no way seek it. You would see that this world of yours, with all of its position and rank, is less in my eyes than the moisture that comes from the sneeze of a goat.Imam Khomeini said that it is not the time to sit silent. The time has come to rise against the traitors, puppets of foreign imperialists, and tyrants who have the blood and sweat, wealth and income of the Muslims nationwide. They have snatched the prosperity from the Muslims. It is the responsibility of the scholars of Islam and all the Muslims to destroy this system that has enslaved us. We will overthrow the anti-Islamic governments to bring welfare to millions of Muslims by the formation of a government on the foundations of Islam.Imam Khomeini said that the rules and regulations laid down by Islam prevent the exploitation of the weak by the oppressors. If the anti-Islamic form of government prevails than the Islamic land will fall in the hands of the foreign imperialist powers. The people who rule Iran are useless. They are corrupt, tyrannical and incompetent. Therefore a revolution is necessary. An Islamic revolution is the only way to end this system of kufr.Imam Khomeini successfully preached these ideas in the nation of Iran and led to the Islamic revolution that resulted in breaking the chains of imperialist United States a nd Israel. The country fled into the streets to support his ideology, the righteous, faithful and Islamic ideology.