Product definition Assignment Example | Topics and Well Written Essays - 250 words

Product definition - Assignment Example The expected attributes of a product are those benefits that customers perceive that they will be offered in return of purchasing Rolls Royce Phantom. The customers expect that by purchasing the Phantom they will attain the benefit of travelling in a luxurious and expensive vehicle which will suit and compliment their higher social status in the society. The customers expect that Rolls Royce will offer them security and it does provide security in the shape of features including frontal and overhead airbags. It even offers customers safety as these cars come along with the attribute of disabling the ignition. Customers expect that these cars will offer them convenience in shape of programmed temperature controlling option and they even offer the driver with a bin attached on the door. These are those benefits that are offered by Rolls Royce Luxury Cars and provide a competitive advantage to the company over its competitors. One of the major benefits that customers receive from purchasing a Rolls Royce is that they are allowed to customize their own cars according to their needs and taste. The benefit of customization is quite rare and this allows the company to maintain a base of customers who are loyal to the brand. Rolls Royce Phantom offers a moon roof that is not offered by its close competitor Mulsanne. The Phantom even offers warranty coverage for a period of 4 years and even offers door locks for children that are not offered by its competitors. The customers of Rolls Royce luxury cars such as the customers of Phantom expect that in future these cars will be more fuel efficient with updated technologies that will reduce fuel consumption. The customers even expect that in future the phantom may be priced lower with the introduction of a mini Phantom. This will allow a lot more consumers to experience the luxury and comfort

Differences in Assessing and Managing Credit Risk in Investment Essay

Differences in Assessing and Managing Credit Risk in Investment Banking and Commercial Banking - Essay Example Credit risk represents the possibility of loss due to the inability of the obligor to fulfill the terms in the financial obligation (bond, note, lease, installment debt etc.). The credit risk is known by slightly different terms in investment and commercial backings. Counterparty credit risk is important for investment banking mainly in trading operations and loan credit risk is crucial in commercial banking. Though both may be caused by the same reason, default, they are managed differently. Credit risk becomes a very serious issue if accompanied by poor banking operations. Proper systems and controls should be in place for effectively assessing and managing credit risks in both type of banking operations. Credit risk arises when a borrower of a loan fails to repay it (in commercial banking) or when an issuer of a security or a bond fails to fulfill his financial obligation (a corporate who issued a bond may go bankrupt) to the borrower . For assessment of credit risks in the financial products the investment banking firms (which is more complex compared to assessment in commercial banking) rely on the credit rating assigned to the issuer by the major credit rating companies. To arrive at the credit rating, the agencies carry out a research and an assessment of the account statements (income and expenditure, balance sheet), quality of the management, previous business and financial track records, the potential business and financial risks and the ability of the management to mitigate them effectively. ... Proper systems and controls should be in place for effectively assessing and managing credit risks in both type of banking operations. Assessing Credit risk in Investment Banking and Commercial Banking Credit risk arises when a borrower of a loan fails to repay it (in commercial banking) or when an issuer of a security or a bond fails to fulfill his financial obligation (a corporate who issued a bond may go bankrupt) to the borrower (in investment banking). For assessment of credit risks in the financial products the investment banking firms (which is more complex compared to assessment in commercial banking) rely on the credit rating (considered as the representation of the financial strength of the issuer or the product that is issued to meet its financial obligations) assigned to the issuer by the major credit rating companies. To arrive at the credit rating, the agencies carry out a research and an assessment of the account statements (income and expenditure, balance sheet), quality of the management, previous business and financial track records, the potential business and financial risks and the ability of the management to mitigate them effectively. Based on the data collec ted and analysis of the same, the agencies issue a credit rating, which is a qualitative judgment of the ability of the issuer to meet his financial obligations. Standard & Poor, Moody's (US) and Fitch-IBCA (UK) are some of the leading and reputed credit rating agencies whose ratings carry more value in the financial market. The companies/products who exhibit least risk are given investment grades and with increasing possibilities of risk, the rating is graded down to the ones with definite possibility for default are