The Growth Of The Eurodollar Market Finance Essay - Free Essay Example

Sample details Pages: 4 Words: 1240 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? With the globalization of financial markets, the growth of the international capital markets becomes rapidly, especially the Eurocurrency and Eurobond markets. A Eurocurrency is a dollar or other freely convertible currency deposited in a bank outside its country of origin. The prefix Euro as used here has nothing to do with the currency known as the euro or with Europe. Such as, the U.S dollars on deposit in banks outside the United States are called Eurodollar. Eurodollars are not under the jurisdiction of the Federal Reserve. As long as the U.S dollar was the worlds main means of international payments, the Eurodollar became the dominant Eurocurrency in the financial market. The Eurodollar first came about in 1957 because of the cold war. After the Second World War, the quantity of U.S dollars outside the United States increased enormously. As a result, enormous sum of U.S dollars were in the custody of foreign banks outside the United States. During the col d war period, the Soviet Union feared that its deposits in North American banks would be frozen as retaliation. It decided to move some of its holdings to the Moscow Narodny Bank, which is a Soviet owned bank with a British charter. The British bank would then deposit that money in the US bank. There would be no chance of confiscating that money, because it belonged to the British bank and not directly to the Soviets. On February 28, 1957, the sum of $800,000 was transferred, that creating the first Eurodollar. At first the Eurodollar was only in European nations but because of the large commercial deficits of the United States the Eurodollar market quickly expanded worldwide. The growth of the Eurodollar Market is caused of the restrictive U.S government policies.  These policies include reserve requirements on deposits, special charges and taxes, required concessionary loan rates, interest rate ceilings, and rules which restrict bank competition. Such as Regulation Q of the F ederal Reserve System, which fixed the rates of interest, paid on time deposits but did not apply to time deposits owned by foreign accounts. Competition among New York banks led returns on such deposits in 1958 and 1959 to rise one-fourth of 1 percent above the Regulation Q ceilings. This induced banks in London to bid for dollar deposits, which they conceded to New York. European lenders and borrowers in dollars also found it convenient to trade in dollars in London rather than New York, because of the identity of the time zones, without the need to limit trading to the few hours a day when Europe and U.S. banks were open simultaneously. Through the 1960s, the Eurodollar market grew rapidly. Currencies other than dollars were traded outside their domestic markets. London was at the centre of the Eurodollar market at that time. Depositors consist mainly of Europe central banks, firms, and individuals in the United States and in third world countries. In the 1970s, the practice o f accepting deposits in U.S. dollars and other non-local currencies spread to banks in Singapore and Hong Kong. As long as the banks outside of the United States offer convenience and smaller spreads than U.S domestic banks. The Eurodollar market continues to thrive. The most important characteristic of the Eurodollar market is that loans are made on a floating rate basis. The benchmark lending rate for Eurodollar became know as dollar LIBOR (London Interbank Offer Rate). This is also called as the Eurodollar rate, which is a zero coupon dollar benchmark interest rate that is quoted for various period such as overnight, one month, three month, six month and one year. Interest rates on loans to governments and their agencies, corporations and nonprime banks are set at a fixed margin above the LIBOR for the given period and currency chosen. At the end of each period, the interest for the next period is calculated at the same fixed margin over the new LIBOR. Fro example, if the marg in is 60 basis points and the current six month LIBOR is 3%, and then the borrower is charged 3.6% for the upcoming period. Since the late 1980s, the London interbank offered rate has become less important as a benchmark for lending money in the Eurocurrency market, in much the same way that the prime rate is no longer the all-important benchmark in the U.S bank loan market. Although Eurocurrency rates are still computed off LIBOR, a number of creditworthy borrowers (such as Denmark, Sweden, several major corporations, and some banks) are obtaining financing in the Eurocurrency markets at interest rates well below LIBOR. For example, high-quality borrowers at the London interbank bid (LIBID) rate, which the rate paid by one bank to another for a deposit. LIBID is about 12.5 basis points below LIBOR. The high-quality borrowers, such as the World Bank, can raise funds at below LIBID. This trend largely reflects the fact that the ability of banks to impose themselves as the credit y ardstick by which all other international borrowers are measured had faltered. The LIBOR also used as a reference rate for Eurodollar contracts. The Eurodollar futures contracts are traded at the Chicago Mercantile Exchange (CME) in Chicago. They are the worlds most heavily traded short term interest rate futures contracts and extend up to ten years. Each CME Eurodollar futures contract has a face value of $1,000,000. Though the leverage used in futures allows one contract to be traded with a margin of about $1,000. The CMEs Eurodollar futures contracts are based on three month U.S dollar LIBOR rates. The price of a Eurodollar futures contract is defined to be 100.00 minus the three month LIBOR on the contract settlement date. For example, an anticipated annualized interest rate of 5% will translate to a futures price of 95.00. On the expiry day of the contract, the contract is valued using the current fixing of three month LIBOR. From the example we can see at the expiration, if the interest rate raises 1%, the value of the futures contract will be quoted at 94.00. The buyer will compensate the seller $2,500 for one of $1,000,000 valued contract, and vice-versa. Thus the appropriate hedging position can be used to deliver a cash flow that compensates the hedger for the change in interest rates that occurs between the trade date and the settlement date. However, since futures contracts are marked to market daily by the clearing house of the exchange these transfers actually occur incrementally through the period between the trade date and the delivery date and not just on the delivery date. From the principle of how the Eurodollar futures contract works, we can find out if the yield raises the price of the futures contract will falls and vice-versa. Therefore, if you believe that interest rate will fall, you would then buy a CME Eurodollar futures contract because you expect the contract price to rise. And vice-versa, if you believe rate will rise, yo u would sell or short-sell a CME Eurodollar futures contract because you expect the contract price to fall. This retains the normal inverse relationship between the price and the yield of interest rate securities. However, the bond convexity is not maintained due to the pricing of the Eurodollar contracts in yield terms. In recent years, the global economic is in recession. There is so much uncertainty in todays financial market. Therefore, it is important for investors to properly analyze, not only market environment, but also their investment goals. Especially invest in currency market, that always with large potential risk. Don’t waste time! Our writers will create an original "The Growth Of The Eurodollar Market Finance Essay" essay for you Create order

Overview Their Eyes Were Watching God by Zora Neale Hurston

Their Eyes Were Watching God was written by Zora Neale Hurston and published in 1937. Hurstons book guides us through character Janie Crawford’s hectic journey while taking place in the 1900s. The story starts out with Janie, a middle-aged African American woman, returning to her hometown in Eatonville, Florida. Her surprise visit gets the town talking. They wonder where she had gone, what she was doing, and why she was gone so long. Janie’s friend, Pheoby Watson, visits Janie to find out what happened. The conversation that they share frames the rest of the entire book. Janie begins her story explaining that her grandmother raised her because her own mother ran off. Janie’s grandmother worked as a nanny for a white family, so Janie grew†¦show more content†¦It’s very clear that the historical events that occurred during the time period in which this book was written influenced Hurston’s writings. Her book was published in 1937 and it was based in the early 1900s. Hurston was born in 1891, and the Civil War had just ended about 30 years before she was born. Therefore, racial tension was still intact. Her book slightly shows the differences between black and white people in segregated communities. In the book, Janie’s grandmother was a slave and Janie’s mother was â€Å"lighter† skinned. Janie is considered to be a â€Å"lighter† skinned woman, and that has a big influence on how people view her in the book. The story takes place in Eatonville, the â€Å"first incorporated African American town in the United States† (Sherry, Dustin). Women and African Americans were given very few rights due to historical events, including the time after the Civil War. Throughout the book, it’s evident that we see a theme that is common in the early 1900s. For example, Janie’s grandmother wished for Janie to marry a man that would be able to financially support her. Janie is forced to work hard labor for her first husband, Logan Killicks, and we later see her get beaten by her second husband, Joe Starks, in their unbearable marriage. This theme is commonly seen in the book and in the time period in which the book was written. Dustin Sherry believes that â€Å"this story was written as a reflection...she wroteShow MoreRelatedCritique of Oprah Winfreys Film Version of Their Eyes Were Watching God1771 Words   |  8 PagesOprah Winfrey lied on the opposite end of Zora Neale Hurston’s spectrum when she produced her atrocious rendition of Hurston’s stellar novel, Their Eyes Were Watching God. She modified characters and symbols, altered the theme and relationships, and utterly desolated the significance of the title, making it almost unrecognizable to someone who has read the book. Winfrey totally eviscerated Hurston’s unsurpassed novel, extrapolating what she thought important without going in depth in to the trueRead MoreJohn Lewis s Writing Shines New Light On What Happiness714 Words   |  3 Pageswhich [Clare] states† (96). Being so lenient when it comes to happiness only reaps discouragement as this quest can defile the Law of Nature (96).This theme, to think about what our actions effect, is seen in Lewis’ other writing. In â€Å"C.S. Lewis: Overview†, David Langford recounts all of C.S. Lewis’ literary writings. Many of Lewis’ books deal with the human spirit and how we deal with certain situations when they are posed to us. Throughout Lewis’ writings, he challenges the reader to think criticallyRead MoreSelf-Actualizing Through Loving Others1685 Words   |  7 Pagesachieve self-discovery and happiness in life one must serve and love others. Janie in Their Eyes Were Watching God moves around from place to place in order to find happiness. Author Zora Neale Hurstons life parallels with this story, as she attended four different schools after growing up in Eatonville, Florida, Americas first African-American town, where Janie first escapes for a new beginning (McLeod). Hurston studied cultural anthropology and started writing her books during the Great DepressionRead MoreOne Significant Change That Has Occurred in t he World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesISTORY In the series Critical Perspectives on the Past, edited by Susan Porter Benson, Stephen Brier, and Roy Rosenzweig Also in this series: Paula Hamilton and Linda Shopes, eds., Oral History and Public Memories Tiffany Ruby Patterson, Zora Neale Hurston and a History of Southern Life Lisa M. Fine, The Story of Reo Joe: Work, Kin, and Community in Autotown, U.S.A. Van Gosse and Richard Moser, eds., The World the Sixties Made: Politics and Culture in Recent America Joanne Meyerowitz, ed

History of African American Music Free Essays

The history of African American music has been characterized by a mixture among various forms of music. Country blues, urban blues, New Orleans Jazz, Bebop, big-band jazz, and rhythm and blues, have all influenced each other profoundly. These influences flowed back and forth among the various forms. We will write a custom essay sample on History of African American Music or any similar topic only for you Order Now But, black gospel music had only a very limited effect on popular styles, until a few church-trained artists, such as Sam Cooke and Ray Charles, began to incorporate gospel styling into their popular work. The result is usually described as â€Å"soul music,† a mix of blues, rhythm and blues, and gospel voices. But, if Ray Charles was one of the â€Å"originators† of soul music, â€Å"Aretha Franklin reshaped it,† by bringing even more of her gospel background to bear on secular love songs (Wade and Picardie 27). By combining popular elements with her stunning voice, her great musicianship, and the feeling for a song that she learned in church, Aretha became one of the greatest soul singers to ever live. Aretha Franklin is a well-known pop, RB, and gospel singer. She has been nicknamed â€Å"The Queen of Soul† and is an internationally known artist and a symbol of pride in the African American community. Her popularity soared in 1967 when she released an album containing songs â€Å"I Never Loved a Man†, â€Å"Respect†, and â€Å"Baby I Love You. † Throughout her career she has achieved fifteen Grammy Awards, Lifetime Achievement Award, National Academy of Recording Arts and Sciences Legend Awards, and many Grammy Hall of Fame Awards. In 1987 she became the first woman inducted into the Rock Roll Hall of Fame. Time magazine chose her as one of the most influential artists and entertainers of the 20th century. She sang at Dr. Martin Luther King’s funeral and at former President Bill Clinton’s inaugural party. Although she has all these accomplishments and awards there are other reasons that have driven Franklin to fame and landed her on the front cover of Time magazine on June 28, 1968. The reasons I believe allowed Aretha Franklin to become so successful are the following: Her family’s involvement with religion, the inspiring people that surrounded her, and the pain she suffered. It is clear that because her family’s involvement with religion would be one reason why Aretha Franklin became as famous as a Gospel singer. Some people would say that her love for religion is unbelievable, but after researching her childhood it is very believable. Her father, Reverend Clarence LaVaugh Franklin lived in Shelby Mississippi and preached while living the life of a sharecropper. As soon as he had enough money, he would move to Memphis, Tennessee to become a pastor of two churches. After a couple of years he attended LeMoyne College, and he studied Education and English Literature. With his education he was able to bring a more liberal view to his preaching’s. Then he moved the family to Buffalo, New York. When he had the resources, he moved the family again to Detroit, Michigan were he settled and became a pastor of a churched called New Bethel Baptist Church. He quickly became one of the most famous pastors in the city of Detroit. Aretha was two years old when they made their final move, she would grow up here and grab the emotion of Church and incorporate it into her music. Aretha Franklin’s mom, Barbara V. Skaggers, served as choir director and pianist. Aretha describes her mom as â€Å"a Superb singer, her voice was clear and distinctive†. (Franklin and Ritz, 6) Her parents taught her how to sing with great pride. This was a big issue because the late ‘50s, early ‘60s was a time of turmoil for African Americans. Her father especially tried to instill pride into her. He was a Civil Rights activist and he was a close colleague with Dr. Martin Luther King. With her parents keeping her involved in Church she was bound to become one of the world’s greatest singers. At around age 12, the father recognized Aretha’s talent as a singer. So he took her on the road with his traveling gospel show. This was important because it shows the kind of support Aretha received from her family. It was said, â€Å"She was a spellbinding performer at the age of fourteen. † (Franklin, 3) So her family really supported and inspired her to become a gospel singer. What also made her a great artist was that she had inspiring people all around her. Aretha grew up in Detroit which at the time was a rousing city or a city of hope for the African Americans running away from the brutality of the South. Though Detroit still had its problems such as race riots, many famous musicians grew up there. Also since New Bethel Baptist Church was so prominent, many musicians and political leaders used Reverend Franklin’s pulpit as a platform to sing or speak to the Black’s of Detroit. Aretha was introduced to classical music by Smokey Robinson’s sister Sylvia Burston. She listened to well known local DJ’s like Ruth Brown and Senator Brystal Brown. When Aretha was younger, she would ride her bike to the local park, and on her way home she would stop by a night club where you could here B. B. King perform. She says, â€Å"You could hear the soft sound of his guitar all the way to the sidewalk (Franklin and Ritz, 22). National and local political leaders would give there speeches. Speakers such as Dr. Adam Clayton Powell, Sr. , Dr. Martin Luther King, and Reverend Jesse Jackson would speak powerfully to the church. Aretha was directly influenced by Miriam Anderson, Sammy Davis, and Roy Wilkins. Detroit was overflowing with talent and speakers which I believe also contributed to Aretha’s success. Pain was probably what really drove Aretha Franklin’s success. As stated before, Franklin’s family was highly religious and was continually involved in the Church. But that doesn’t mean that she hadn’t been through a tremendous amount of pain. Early in life her mother and father got a divorce. The father was better suitable to raise Aretha and her four Siblings. The mother moved to Buffalo, New York and tried to make regular visits to see her children. She was supported her children in the best way she could, but when Aretha needed her, she still was not reachable. Matters became worst a few years later when Aretha’s mom dies of a stroke. Aretha described her mom by saying â€Å"she was the absolute lady† (Smith, 3). At age 15 she had her first child and two years later another would come. But Aretha still wanted to go out and be with friends, so her grandmother usually babysat for her periodically. In a time when Black Activism, Feminism, and Sexual Liberation were high, she needed to provide for herself. So when Aretha was old enough and was ready to start performing, she hired a man named Ted White to be her manager. He later became her husband. In the future she would divorce him for a famous actor which would end in divorce, too. Even though in 1968 to 1969, Franklin’s career was rising rapidly. She was still described by her Producer Jerry Wexler as â€Å"a person whose depressions runs deeper than the sea† (Ritchie Unterberger, 3). Then one of Franklin’s highest admirers, gospel giant Mahalia Jackson died. Right after her death a extremely emotional gospel album was released my Aretha â€Å"Amazing Grace† This record was considered to be one of the most emotional records of its time. Much of the pain that Aretha suffered was not really publicized, but still it had to be one of the reasons for her to have such a powerful voice. Aretha Franklin was a successful artist and still inspires musicians today. Her voice is still described as incredible. She has all the awards that she needs to show her talent. Works cited Franklin, Aretha, and David Ritz. Aretha: From These Roots. New York: Villard, 1999. Print. Carroll, Jillian. Aretha Franklin. Chicago: Raintree, 2004. Print How to cite History of African American Music, Essay examples

Market Segmentation and Decision Making in IT Industry

Question: Discuss about the Market Segmentation and Decision Making in IT Industry. Answer: Introduction Market segmentation is whereby you have a broad consumer market of both existing and potential consumers and subdivide it into small groups known as segments. The segments will, therefore, consist of a group of individuals with same characteristic and preferences for the good and service being offered. Day by day, the customer population and preferences are becoming wider. Ultimately, the competitive options are becoming more available, as the market segmentation become very critical in any business or marketing plan. Companies that launch products are considering market segmentation, and through the conceptualization of the market segment, rightful customers are targeted. Apparently, by targeting the right consumers, businesses probably utilizes the best sales and marketing channels that are capable to significantly influence consumers purchasing behavior. Apple is a global company that specializes in manufacturing and selling of information technology products. Apple Inc develops and sells computer software, electronics and offers online services (Lublin, 2014). This industry is characterized by creativity and innovation and the technology that work perfectly well today may not be the best if not improved. Hence, there is a robust advancement in the products and services offered by various companies in IT sector (Johnson et al., 2008). Apple Inc has to identify the potential customers that exist so that appropriate sales and marketing strategies are proactively applied. This report has firstly expounded on Apple growth, profitability and applied PESTLE to analyze business environment. Secondly, this paper has succinctly examined market segment for Apple Inc by identifying primary and secondary target market. Moreover, it has described the level of involvement of the primary segments likely have on this organization regarding decision making. Finally, this paper has discussed the nature of competition in this industry and further created a positioning map for the marketplace of this company. Business environmental audit: PESTLE analysis Political factors Political factors, considers the government placed policies. These policies positively and negatively affect IT companies. Because Apple manufactures most of its products in China, political instability could adversely affect the production. The growing anti-Americanism in China will probably affect manufacturing and sale of products in China. Additionally, the toughing environmental and labor laws in the U.S.A are probable challenges for Apple to retain its competitiveness. Economic factors There is an overall rise of middle-class disposable incomes. This has continually created the gap for computer hardware and software thus creating more opportunities for production of these. IT is saving time and energy for most business. Apple has been affected by economic crises that affected its markets (Cheney, 2010). Also, high unemployment rate affects its sales in some regions. Moreover, the strong American Dollar increases the exchange rates hence making Apple products expensive in developing countries, China, and other regions with a weak currency. Social factors The social factors look into employees right, language barriers, race, nationality, etc. Apple is keen in ensuring there is a minimal customer-product mismatch, and this could be a result of increased cultural diversity. The different social classes provide an opportunity to provide even high standard customers who are only for high-quality services and product that are similarly expensive. Apple has applied franchise in India and acquisition to enhance growth and further provide products that suit customer needs. For instance, Apple acquired Prime Sense and Embark as part of a strategy to strengthen its market position. Moreover, the ethical concern in China about the manufacturing of Apple products may affect the purchase of its product by ethical conscious consumers. Technological factors Technology is changing every day which acts as an opportunity for innovation. It is, perhaps, costly since changes are happening spontaneously and a company may come up with a product today, and tomorrow it is obsolete (Nerkar Shane, 2007). There is a daily increase in demand for mobile phones and tablets, and this is an opportunity for technology providing companies. Apple lead in innovation has enabled it to manufacture unique product hence retaining its large market share. However, frequent change in environment imperatively requires Apple to significantly invest in research and development to improve continuation in innovation (Shaughnessy, 2013). Legal factors There are regulations on electronic waste disposal, and this is one way to improve company image to the public by coming up with effective disposal and recycling programs. Also, the patents laws that aim to reduce software piracy are formulated which perhaps increases Apple exposure to litigation risks. The entrance of Apple into the provision of financial services through Apple Pay exposes it to more regulations and oversight by the government. On the other hand, there is increasing governmental support for automation which presents opportunities for increase computer technology sales via governmental clients. The increasing international trade agreements develop a remote or macro-environment that supports an increase in global sales. Information Technology Industry Analysis: Current trends in growth of IT industry Today, there has been a tremendous change in the IT industry which has been spurred by robust innovation and creativity. Perfect and effective technologies are being developed hence enhancing trade and industrialization (Johnson et al., 2012). As activities and processes get simplified in industries, the primary providers of these technologies are also ensuring that the current technologies are improved daily. Profitability The most important driver for profit increment remains the inspiration from the most government to achieve economic prosperity by customizing on technology hence increasing the demand for technologies. Ultimately, incremental charges like license renewal, servicing, and acquisition of spare parts keep impacting positively on the sales of IT providers companies (Adam, 2013). In other cases, profits earned by most innovative companies do not fall significantly but mostly improve. For instance, the gross profit for Apple Inc for 2013-2016 was $64,304,000, $70,537,000, $93,626,000 and $84, 263,000 respectively. Perhaps, the gross income has decreased but Apple has continually realized significant profits. Therefore, the profitability of businesses in this industry depends on the competitive scope of a company in providing innovative products (Thielen, 2012). Threats and opportunities of the industry Apple has the opportunity for business diversification where there is a new business development that includes sales of a range of products which is fundamental in increasing revenues. There is the increased adoption of mobile technology (Apple Inc, 2014). Everyone from the young to the old needs a phone, so there is the opportunity to design a mobile phone that are user-friendly and that have different qualities for each age group. However, weaknesses exist, such as vulnerability to cyber crime. It limits the attractiveness of Apple software (Tech, 2013). Competition in the Industry Despite Apple success in serving a large market share in the globe, it faces stiff competition from rivals. For instance, mobile computers face competition from Dell, Acer, Lenovo, and Hewlett-Packard. Smartphones face stiff competition from Samsung and Sony. Mobile payment faces competition from Pay Pal and Google. Simply, IT industry is very competitive hence increasing the rate of obsoleteness in the products manufactured and sold by companies. In as much as the tremendous change in technology may be perceived as a challenge for the key providers of IT services, however, the changes offer the opportunity to help come up with products and services that meet customers demands accordingly (Adam, 2013). The high pace of advancement in this industry is a major threat not only to Apple but also other companies. This is whereby fraud and identity theft is done via computer internets. Another threat is piracy, which is becoming too rampant in developing nations. Moreover, there is also strong rivalry in the industry. Such rivalry threatens Apple growth and development. Apple has diversified its operations to surmount the ever pressing competition (Fan Xiao, 2015). Many firms are in software and hardware business, and some are selling them cheaply because of the poor quality which makes Apple lower prices in spite of quality being high thus affecting the profits. Apple has a strong financial position which is derived from the overwhelming sales volume. High revenues are generated from the wide range of quality products sold globally (Porter, 2008). Apple sales are very high and keep increasing which has enabled it to have the funds for innovations and improving its products (Tan, 2013). These high revenues have been as a result of having a good image and properly positioning their products and services to customers (Murray, 2014). Customers are more encouraged to buy goods from Apple because its product can be trusted. Products are of high quality and do not easily break. Also having alliances with other companies in the IT industry through franchising has greatly helps it in developing best products that always meet customer expectation. Apple has a strong market for software, like above mentioned, customers like being identified with suppliers who are reliable. Therefore, Apple rigorously customizes on any available opportunity which has as sisted it to retain competitive advantages over rivals in IT sector. Consumer Targeting and Segmentation: Market segmentation Consumer targeting refers to the process of identifying the potential market for the product and applying the right marketing and promotional mix with the primary objective of increasing the company sales (James et al., 2009). As earlier discussed, a company must identify customers that should be given priority. The target market is determinable by firstly conducting research on the market. This, however, does not mean that the fewer priority consumers are left. Apple applies four types of market segmentation, that is, geographical, demographic, behavioral and psychographic segmentation. Every segment is profiled, and the attractiveness of each is evaluated so as to determine the most profitable market to the least profitable. Market Segmentation helps the business to precisely provide particular consumers with specific needs and wants (Grewal and Levy, 2010). Apple primarily uses demographic segmentation. This is whereby the business is targeting market based on age group. Different age group, for instance, has a preference for different type of mobile phones. Age between 18-35years is said to be using phones whose features are very high. This age group is an earning group and is in middle crisis so is the group likely to buy high-quality phones at a high price. Also on sales of OS and software, its target is gender-based, and for this case, male gender is more targeted (Michael and Todd, 2011). Additionally, Apple primarily uses geographic segmentation whereby, it is expanding its distributions and operations to developing countries. Apple is targeting developing nations because of the increased governmental support towards propelling economic development through the embrasure of technology. Secondary behavioral segmentation is used. In this type, the usage rate is looked into, and further brand loyalty. Apple has managed to provide reliable services, and therefore it has a clique of customer who always comes back to purchase products because of the loyalty created (YouSigma, 2008). Another secondary segment used is psychographic. Psychographic segmentation is whereby the product and services are usually offered to different society classes (lifestyle) and also based on the opinions. If a certain group believes a certain product is good, then that whole society should be marketed for that particular product they feel is good for them. The level of involvement the primary segment is likely to have on decision making. The primary segment helps in targeting the right customers. Segmenting makes it easier to target customers (Yue Tong, 2009). The segment, therefore, influences which customers are to be prioritized. It also determines the firm position. For instance, if it is advertising, segmentation helps the management to understand how the company can carry it out to reach the target customers. With the geographic segmenting it is wise to advertise the product on price and quality as well as how it is of benefit to the target customers (Sweeting, 2013). Consideration of primary segmenting also gives the full and clear picture of what the target customer wants. It is possible to make a decision if a company can meet all customers need and how to meet these needs. This segmentation is important because it gives ideas for growth and innovation. By bearing in mind that a market has different classes, primary segmentation aids in determining and noticing any arising opportunities as quickly as possib le (Ingram et al., 2009). positioning map Firstly, the determinant attributes are ascertained. These are the main factors that the consumer will rely on to make a purchase decision. The next step is to list the leading competitors in the market for all the products. Finally is to create scores for the chosen brands. With the behavioral segmentation, it is apparent that there are a high standard and middle standards customers. It is thus an opportunity to ensure both customer standards are met. This increases sales since the markets are well covered. Market positioning map ensures that the customer services offered as well are of high standard. Figure 1.1 Positioning map Conclusion In conclusion, the external factors will always be there, and it is the duty of the business to comply. In some instances, failing to comply may lead to heavy penalties, closure of the business or creating a bad image which will scare away existing and potential customers. Again, it is very important to conduct a SWOT analysis and identify the strengths so as to capitalize on them as well as the opportunities available. This will help in identifying the existing weaknesses that could compromise the overall working of the business and determine threats such as competitors so as to ensure the business has a competitive advantage in the market. Also for the business to have a clearly stated target market, it must segment, target and position its market. Segmenting, targeting and positioning generally increases the focus of the company to its market, improves its competitiveness, market expansion is possible especially with the geographic segment that provides an opportunity to go global , and further enhances customer retention. For the organization to thrive well in the environment its operating in or planning to launch a new product it must understand, the entire environment well starting with the political situation, the prevailing economic factors, the importance of culture, technological situation, the legislations regulating the environment and the environmental concerns of the industry. In the case of making decisions also, the company has to analyze internal factors and external factors that are likely to affect the business. Sometimes, it is hard to accurately map out a business future without first evaluating it from all angles. This mapping includes an exhaustive look into all internal and external sources of threats. 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