The theoretical foundation of states regulatory response to the Essay

The theoretical foundation of states regulatory response to the financial crisis - Essay Example inancial crisis arises when the demand for money is more than the supply resulting in a liquidity problem forcing banks to borrow to make up for the shortfall and in some cases leading to a collapse of this banks. This results into a financial crisis. It is for this reasons that theories have been developed across the financial field on the regulatory response to the crisis. The following are some of the financial regulations that are being adopted by many nations across the globe in trying to control the financial crisis includes; liquidity risk management, money market operations by the central banks, bank insolvency regimes, financial crisis management, and the deposit insurance. This paper seeks to explore the theoretical foundation of states regulatory response to the financial crisis. The Deposit Insurance has been used as a way of regulating the financial institutions to control the financial crisis from inflicting adverse effects on the economy of a country. The deposit insurance is a measure used to protect the bank depositors in case of a financial crisis (Strater and Corneli 2008 p.46). It protects the investors from losing the money they invest in the banks in case the banks have liquidity problem and become insolvent. The Insurance deposits ensure that the investors recover the money. The deposit insurance operates by allowing the banks to deposit part of the money with the Insurance deposit to cushion them from any financial crisis that may lead to recession and closure of these banks. The United States for example protected the smaller banks from the poor states by adopting the insurance Deposit as a strategy to avert a looming financial crisis (McDonald 1996 p.19-23). Liquidity risk management theory is also a regulatory response theory to financial crisis. Liquidity is the ability of a bank to fund its assets and meets its long and short term obligation as and when they fall due. When a bank is faced with a financial crisis, it is not able to

Marketing - Pricing Strategy Essay Example | Topics and Well Written Essays - 1500 words

Marketing - Pricing Strategy - Essay Example To ensure that the number of customers is controlled, the restaurant will charge high prices for their products while ensuring that the quality of food and other services provided are great. The statement of the restaurant should be to offer high quality food to the target market by ensuring emphasis on customized / personalized services. By adhering to the statement, the restaurant will aim at offering good food to the customers and at the same time be driven by the changes in the market (Milligan, 2012). This will ensure that the customers’ needs are met in a timely manner with customer considered king in the business operations. At the same time, offering of quality food and drinks will make the business operate within the legal requirements and cater for the interests of their stakeholders (Gupta, 2009). Because of this, the business will remain socially responsible and reduce costs that are associated with litigation charges. Most cases involving restaurants are based on tortuous actions or criminal proceedings if customers get injured or incur losses because of consuming food or having injuries in the restaurants. If the statement guiding the operations of the restaurant is maintenance of quality, the cases of such litigations will be minimized hence reducing costs. This statement would simultaneously cause customer satisfaction and loyalty. Every retailer in conducting business has the objective of maximizing returns ion the investment. Pricing is the only marketing mix element that generates cash to the business hence its importance. However, settling on the pricing strategy to use may not be an easy task to businesses. There are various pricing strategies including cost plus margin pricing, competitive pricing, psychological pricing, multiple pricing, discount pricing, and prestige pricing (Nagle Hogan & Zale, 2011). Any business that considers profit key however must thus consider the cost of production and ensure that the prices are above all the total costs and other overheads used in production. For the case of the upscale pricing, there is need for exclusion and uniqueness. The kinds of customers who are expected to be served in the restaurants are those of high class and will be interested in high quality services. They will thus be less sensitive to changes in the prices since they are also capable of paying even where charges are very high. Prestige pricing will therefore be the best pricing strategy to adopt in the restaurant (Nagle Hogan & Zale, 2011). Prestige pricing is one way that will ensure that the prices charged are above the costs and therefore make the business make huge profits to justify its operations and expansion of their services. In addition, the customers of upscale restaurant are those who need a feeling of being very important and non-ordinary. This makes them associate the high price with very high quality ad uniqueness. They will therefore be more comfortable with paying high prices than jus t the normal prices as a cost to the exclusive nature of their environment. In an upscale restaurant, highly qualified staffs who also expect to be paid highly normally prepare the food. The hotel attendants must be people with great skills and knowledge whose services are compensated very highly. In addition, the furniture, jewelers, and other beautification products to make the environment look prestigious make the customers overlook the