Group Publishing Limited 2005). By 1990‚ however‚ Zara realised that the Spanish market was far too saturated; they had to change their growth strategy. For that reason‚ they started its global expansion by entering Spanish natural export exit: Portugal. Shortly after‚ Inditex started its outer expansion in France‚ the US and the rest of the world. But let’s focus on which entry strategies Inditex had to pursue to become global. Inditex choose a localization strategy which meant: 1) increasing
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Capital Project “A capital expenditure is a commitment of resources that is expected to provide benefits during a reasonably long period‚ at least two or more years” (Cleverly & Cameron‚ 2007‚ p. 397). Sometimes it can be difficult to determine the difference between a capital expenditure and a routine expense. A capital expenditure improves the value of the asset‚ whereas a routine expense is used for maintenance of that asset. For example‚ installation of a new bathroom in a
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was first featured as low-priced look-alike products of popular‚ higher-end clothing fashions. The first store proved to be a success‚ hence Inditex Group started to open more Zara stores in Spain. In order to reduce the lead time and also react to new trends in a faster way‚ Ortega decided to change the design‚ manufacturing and distribution process during the 1980’s. This is what Ortega called “instant fashion”. The company made their improvements by the use of information technologies and using
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What are Capital Markets? Capital markets are markets where people‚ companies‚ and governments with more funds than they need (because they save some of their income) transfer those funds to people‚ companies‚ or governments who have a shortage of funds (because they spend more than their income). Stock and bond markets are two major capital markets. Capital markets promote economic efficiency by channeling money from those who do not have an immediate productive use for it to those who do. 1.
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Ltd By Shah Abdul Hannan‚ Former Secretary‚ Ministry of Finance‚ Government of Bangladesh and M. Fariduddin Ahmad Deputy Executive President Islami Bank Bangladesh Limited ________________________________________________ SECTION – I Banking Scenario in Bangladesh When Bangladesh came into existence on the 16th December‚ 1971‚ the banking sector of Bangladesh was in a total disarray. With the exception of two local banks incorporated in then East Pakistan‚ all the bigger local banks became inoperational
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CAPITAL BUDGETING MEANING OF CAPITAL BUDGETING Capital budgeting is the making of long term planning decision for investment fixed assets and their financing. Capital budgeting decision is concerned with current investment that will pay for itself and yield an acceptable rate of return over its life span. Hampton (1992) defines capital budgeting as the decision making process by which firms evaluate the purchase of major fixed assets‚ including buildings‚ equipment. It also covers decisions to
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Capital Budgeting Introduction Capital budgeting decisions are the most important investment decisions made by management. The objective of these decisions is to select investments in real assets that will increase the value of the firm. (Kidwell and Parrino‚ 2009) Project Classification Types * Replacement projects are expenditures necessary to replace worn-out or damaged equipment. * Cost reduction projects include expenditures to replace serviceable but obsolete plant and equipment
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How venture capital funding works It is popularly believed that venture capitalists fund only established players and proven products. There is a lot of cynicism amongst many about all the hype that private equity and venture capital is getting in India of late. However‚ the truth is that‚ in recent times in India‚ the VCs have actually provided capital to relatively new‚ start-up companies that have a reasonable‚ though not certain‚ prospects to develop into highly profitable ventures. Travelguru
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Zara expansion in China ZARA Zara is the flagship chain store of Inditex Group owned in Spanish. Inditex takes a step forward in its expansion in China. Zara opened its first store in this country in May 2004 at the IFC mall‚ Hong Kong‚ where it now has five stores. In February 2006 the first store was launched in Shanghai‚ in Nanjing Xi Lu‚ followed by a second one in this city located at Times Square mall. In February 2007 The Inditex Group already opened its first Zara store in Beijing‚ located
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Capital Budgeting Rules: NPV‚ IRR‚ Payback‚ Discounted Payback‚ AAR Categories of Plans 1. Replacement Projects: decisions to replace old equipment – those are among the easier of capital budgeting techniques. It is important to decide whether to replace the equipment when it wears out or to invest in repairing the machine. 2. Expansion Projects: These are decisions whether to increase the size of business or not – they are more uncertain than replacement projects. 3. New products and services: These
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