Investment Process

The following is investment process which is followed when an investment decision is to be taken.

  1. Meeting the prerequisite of investment
  2. Setting investment policy/goals
  3. Security evaluation or analysis
  4. Portfolio construction
  5. Managing the portfolio & its performance

Prerequisite of Investment:

For Individuals

– Fulfillment of basic needs
– Keep cash to bear sudden (emergency) requirements
– In case of loss, you must have enough strength to meet it.

For Companies

– Ensure the uninterrupted operations
– fulfill their short term financial needs
– fulfill their raw material and employees needs

Setting Investment Policy or Goals:

Timing of Investment:
If company wishes to invest for short term or long term investment.
Form of Investment:
If company wishes to investment is in real or financial assets.
If company wishes to invest in high risk or low risk investments.
Return Expectations:
If company has high return or nominal return expectations.

Security Evaluation and Analysis:

Technical Analysis:
It is a security analysis for forecasting the  future direction of prices through the study of past relevant data like price and return behaviors.

Fundamental Analysis:
It is the study of the fundamentals of a company to determine if the business has potential for investment by considering the Risk , required rate of return and companies cash flows , profits and other data by analyzing their financial statements.

Portfolio Construction:

The investments are diversified into various sectors to minimize the risk. That means we do not invest our whole amount in a single opportunity or investment. When we gather different investments we have a portfolio of investments. We can use different techniques to evaluate how can we increase our returns or reduce our risk on certain investments. Portfolio is the best method to increase your returns and reduce your risks because if somehow your decision about an investment goes wrong and you suffer losses, you have other investments which will compensate.

Managing the Portfolio & its Performance:

In this step, we observe our portfolio and look for the returns. If any of the investment is not up to to the expectations we might swap that investment with any other one.

Performance Appraisal


The degree of accomplishment of any task is called performance.


Any criteria through which performance of any employee can be evaluated.

Performance Appraisal:

“It is a process of determining and communicating to an employee that how he/she is performing on job and ideally establishing a plan of action.”

It has three basic tasks to do,

1. Determine what employee doing
2. Communicate with employee about his performance
3. Set a plan of action for training needs if required.

Uses of Performance Appraisal

– Promotion
– Compensation
– Performance
– Training
– Firings (Layoffs)
– Transfers
– Test Validation
– Motivation

The above are some uses of Performance appraisal.

Determinants of Performance Appraisal


“Amount of energy individual uses to perform a task.”


“Personal characteristics which a person uses to perform a task.”

Role Perception:

“Direction in which individuals believe that they should generalize their efforts.”

Individual Human Potential = (Inborn Abilities + Acquired Abilities) x Attitude

Process of Performance Appraisal

1. Establish the performance standard with employees
2. Mutually set measurable goals
3. Measure actual performance
4. Compare actual performance with standards
5. Discuss the performance evaluation with employee
6. If necessary, go for immediate corrective action.

Methods of Performance Appraisal

1. Graphical Rating Scale Method

“A scale that list a number of traits and a range of performance for each. The employee is then rated by identifying the scale that best describe his or her performance for each trait.”

Typical Graphic Rating Scale (Example)
Employee Name……………….        Job title ……………..

Department …………………….       Rate ……………

Data …………………………….






Quantity of work: Volume of work under normal working conditions
Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job
A clear understanding of the factors connected with the job
Attitude: Exhibits enthusiasm and cooperativeness on the job
Dependability: Conscientious, thorough, reliable, accurate, with respect to attendance, reliefs, lunch breaks, etc.
Cooperation: Willingness and ability to work with others to produce desired goals.

Table Reference

2. Alternation Ranking Method

“Ranking the employees from best to worst on a particular trait choosing highest then lowest until all are ranked.”

3. Paired Comparison Method

“Ranking the employees by making a chart of all possible paires of the employees for each trait and then indicating which is the better employee of the pair.”

4. Force Distribution Method

“It is similar to the grading on curve. Predetermined percentages of the ratees are placed in various performance categories.

5. Critical Incident Method

“Keeping a record of uncommonly good or undesirably bad examples of an employee work related behavior and reviewing it with employee at predetermined times.

6. Behaviorally Anchored Rating Scale (BARS)

“An appraisal method that aim at combining the benefits of narrative critical incidents and quantified rating by anchoring a quantified scale with narrative examples of good and poor performances.”

Steps to create BARS

6.1 Generate critical incidetns

6.2 Develop performance dimensions

6.3 Reallocation of incidents

6.4 Scale the incidents

6.5 Develop a final instrument

An Example of Behaviorally Anchored Rating Scale (BARS)




Extremely good7Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.
Good6Can expect to initiate creative ideas for improved sales.
Above average5Can expect to keep in touch with the customers throughout the year.
Average4Can manage, with difficulty, to deliver the goods in time.
Below average3Can expect to unload the trucks when asked by the supervisor.
Poor2Can expect to inform only a part of the customers.
Extremely poor1Can expect to take extended coffee breaks and roam around purposelessly.

Table Reference

7. Management By Objective (MBO)

“It involves setting specific measurable goals with each employee and then periodically reviewing the progress made by the employee.”


Asalam-o-Alaikum and Welcome all!

My purpose to create this blog is to provide help to students for business education. Business education is quite common in all over the world. But in Pakistan, due to the education systems the students find it difficult to understand things from International Authors. Keeping in mind the students with low English skills , I’ve tried to put the things simple for them.

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Market is a social structure where:

1. Existence of a commodity (products or services)
2. Existence of buyers and sellers
3. One price for the same product of the same quality.

Size of Market:

Size of market depends upon the following:

1. Nature of demand:

If the demand of a product is higher its market will be vast or large and vice versa.

2. Nature of Commodity:

If the commodity is perishable its market is limited, and if it’s non-perishable then it has a wide market.

3. Means of Transportation & Communication:

If the means of transportation and communication are well developed in an area or country then the market for the products will be wide, if the goods can transfer from once place to other easily, else the market will be limited.

4. Peace and Security:

If the state has peace and security, then the market expand to the whole area or region but if there are some problems regarding peace or security, the goods will not be distributed to the areas.

5. Currency & Credit system:

If the currency and credit system is strong then more transactions will take place and so the wider will be market and vice versa.

6. Weight & Value:

If the goods are heavy weighted then their market will be limited as these kind of commodities are difficult to move from one place to another but on the other hand if goods carry small weight but high value then their market will be wider.

Classification of Market

Markets are classified as:

1. Area:

– Local Markets: markets within a city or town
– Regional Markets: markets within few cities or a region.
– National Markets: markets within the country premises.
– International Markets: markets in few or more countries.
– Global Markets: markets in all over the world.

2. Time Period:

– Day to Day Market: markets for perishable goods like fruits and vegetables
– Short Period Market: short term market, the supply isn’t in control
– Long Period Market: non-perishable goods, supply is in control.

3. Nature of Commodities:

– General Market: for all sort of products
– Specialized Market: for a specific product or group of products
– Grading Market: grading system by sellers
– Sample Market: where samples of the products are displayed or available.

4. Perfect and Imperfect Markets:

– Perfect Market:
Large no. of sellers and few buyers, products are homogenous, same price prevails, competition among sellers

– Imperfect Market:
Limited no. of sellers and large no. of buyers, products are heterogeneous, there is price difference and monopoly so the entry barriers for new sellers.

Terms of Statistics

Common Terms of Statistics

1. Population:
Totality of individuals or objects about which information is required is known as population.
e.g. population of patients of hepatitis , students of MBA classes at RYK campus etc…

2. Sample:
A small part of the population which is selected to investigate the properties of the population is known as sample.

3. Variable:
A characteristics which changes from individual to individual or object to object is known as variable.
e.g. height of students, income of people, weight of potatoes etc…

Variables are sub-divided into two categories:

3.1 Quantitative Variable:
Any variable which can be measured numerically is known as Quantitative variable.
e.g. income, speed, distance, temperature etc…

Quantitative variable are further divided into two types:

3.1.1 Discrete Variable:
A variable which can assume a finite number of values is known as discrete variable.
e.g. no. of leaves, no. of children etc…

3.1.2 Continuous Variable:
A variable which can have any value in a given interval [a,b] is known as continuous variable. Therefore the number of possible values of a continuous variable is infinite.
e.g. height, weight, distance etc…

3.2 Qualitative Variable:
Any variable which can’t be measured numerically is known as Qualitative variable. It is also known as “Attribute”.
e.g. smoking habit, religion, eye color, etc…

4. Constant:
A characteristic which does not change its value from individual to individual and object to object is called a constant.
OR “A variable which have only one value is called constant.”

5. Measurement Error:
The difference between the actual value (True) and the response we get (Recorded) is measurement error. It may be positive or negative.

5.1. Random Error:
If error is due to human mistake or the direction of error is not the same that it’s said to be a Random Error.
e.g. reading error, human mistake in measurement etc…

5.2 Systematic Error:
If the direction of the error in all data is same then it is called a systematic error.
e.g. Machine error, scale error etc…

Introduction to Marketing

Definitions of Marketing

There are many definitions of marketing. The better definitions are focused upon customer orientation and satisfaction of customer needs.

“Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”
– Philips Kotler

“Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably.”
– The Chartered Institute of Marketing (CIM)

The CIM definition looks not only at identifying customer needs, but also satisfying them (short-term) and anticipating them in the future (long-term retention).

“Marketing is a total system of business activities which is design to plan, price, promote and distribute the want satisfying products or services to the target market in order to satisfy their needs and demands.”
– Williams J. Stanton

“The right product, in the right place, at the right time, at the right price-”
– Adcock

This is a snappy and realistic definition that uses McCarthy’s Four Ps.

The Philosophy of Marketing and the Marketing Concept

The marketing concept is a philosophy. It makes the customer, and the satisfaction of his or her needs, the focal point of all business activities. It is driven by senior managers, passionate about delighting their customers.

“Marketing is not only much broader than selling, it is not a specialized activity at all It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.
– Drucker

“This customer focused philosophy is known as the ‘marketing concept’. The marketing concept is a philosophy, not a system of marketing or an organizational structure. It is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires.”
– Barwell

Now that you have been introduced to some definitions of marketing and the marketing concept, remember the important elements contained as follows:

1. Marketing focuses on the satisfaction of customer needs, wants and requirements.
2. The philosophy of marketing needs to be owned by everyone from within the organization.
3. Future needs have to be identified and anticipated.
4. There is normally a focus upon profitability, especially in the corporate sector. However, as public – sector organizations and not-for-profit organizations adopt the concept of marketing; this need not always is the case.
5. More recent definitions recognize the influence of marketing upon society.