The Fallen of Lehman Brothers

Introduction Following the downfall of Lehman Brothers, attention was focused on the role of regulators and credit rating agencies in the whole debacle. The public demanded for answers which were not forthcoming from all the concerned parties. This experience was to throw the Sarbanes-Oxley Act under close scrutiny and questions were abound as to how the act was not followed by all concerned parties.Advertising We will write a custom term paper sample on The Fallen of Lehman Brothers specifically for you for only $16.05 $11/page Learn More The Sarbanes-Oxley Act was enacted to protect and control the activities of shareholders and prevent accounting errors. This act restricted considerably all financial activities and corporate independence, still, the attempt was made, and the results were expected. Credit rating agencies were blamed for coming up with false ratings on securities connected to subprime mortgages. Examples of these agencies are Moodys, St andard, and Poors. They were found guilty of assigning exceptionally high ratings to the securities and failing to reexamine the ratings based on the current environment at the time. There was also the issue of autonomy as it was found that the rating agencies did not operate independently as there was a conflict of interest in the rating firms. The rating agencies are often backed up by the issuer who owns the bond that the same agencies rate. The situation with Lehman Brothers Holdings showed that the grounds for its downfall were observed through evident accounting malpractice that was committed by both management and staff. The representatives from all departments did not find it necessary to control the financial activities of the organization, still, they try to get more personal benefits and provide their families with appropriate incomes. Managers got an access to manipulate net profits in order to please the public as well as to demonstrate how skillfully they could achieve professional targets. There was also the lack of transparency in how managers dealt with subordinates who were found to have committed the existed malpractice. There was a clear lack of professional management within the organization (Tibman 23), and the analysis helped to understand that this company was not properly protected from numerous outside and inside factors. Genesis of Credit Crunch at Lehman Brothers Before the company became bankrupt, it had a record loss of 4.8 billion US dollars for the year ended May 2008. This amount of loss was contributed by a drastic fall of revenues for principal transactions including earnings from financial instruments and other assets owned by the company (Copeland 45). The downward shift in transactions can be explained by unrealized losses of US dollars 1.6 in the year 2008 with unrealized gains of 200 million US dollars in 2007 (Copeland 78). Such changes made the Lehman managers think that their earnings were enlarged, and the general si tuation of the company is good indeed; this is why, they failed to notice in time how terrible their situation actually was.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Cardinal point worth noting is the reduction in value of assets which are usually appeared in some financial institutions after using the fair value accounting. Any kind of change of values leads to severe contractions of capital ratios as a result of which it is necessary to force the financial institution in order to sell its assets at a distressed price (Copeland 30). In case the values and changes are analyzed properly, it is possible to define the threats of decline. The application of fair value accounting sends a message that a company’s solvency is deeply undermined by strategies in financial institutions or rather their practices of lending and depositing fund but it is the duty of the regulators to specify the information to use when deciding on the market prices. In accounting, the term ‘fair value’ introduces a kind of unbiased estimate with the help of which potential market prices may be evaluated. Critics argue that fair value accounting values distracts attention from the main issue. The main concern is the quality of the associated disclosure. Former governor of Federal Reserve Bank held that the main focus should be on disclosure so that investors and other beneficiaries of financial statement comprehend the drivers behind fair values (Copeland 34). The evaluation of the company’s fair value was not successful because poor attention was paid to the risk credit that Suisse and Lehman Brothers could face. AIG faced adverse risk because of exposure to credit evasion swaps. If the balance sheet of the mentioned financial institution is evaluated before the crisis, it would have been difficult to investigate the amount of losses following the risks. From this discussion it can be concluded that fair value accounting is not a good mirror image of value that is at risk. Role of Fair Value Fair value in accounting is the price value an entity would make if it were to sell assets or rather the amount paid to settle liabilities in a business entity. From the definition of Generally Accepted Accounting Principle, fair value is the amount at which an asset or a liability can be sold or bought in a current transaction. This is possible only if the transaction is done between willing parties. The best approach for fair values is use of prices quoted in the market but in situation where these prices do not exist, then it calls for the use of reliable information available in the market to determine prices. It is widely recognized that companies employ the use of fair value in recording its assets and liabilities and other financial instruments. An example of a model used in estimating fair values is the valuation model which considers data s uch as: economic conditions, status of the market and prices of other competing instruments. To ensure accuracy in arriving at fair values, business establishments must have a strong internal control system. The end result is a consistent and reasonable valuation process. In recognition of the fact that market conditions varies overtime, appraisal of valuation models must be done on a continuous basis.Advertising We will write a custom term paper sample on The Fallen of Lehman Brothers specifically for you for only $16.05 $11/page Learn More The federal government by the use of administrative powers conferred to them by the constitution pressured the Federal Reserve Bank to lower their lending standards to the intermediary banks (Sly 78). Such conditions made the managers pay more attention to mortgage-backed securities which are important debt obligations to represent the right claim on the current cash flows. People or rather investors went to borrow monies in order to invest in the housing finance. A subsequent collapse of the housing sector led to reduction in value of securities. Valuation of these marketable securities was as a result of fair value system. Considering the fact that fair value requires the use of prices at the present time under a specific market condition, mortgage-backed securities were therefore undervalued. Continued employment of present market value when in real terms a market does not exist has destroyed the financial market. The benefit attached to the use of fair value is its ability to provide information on financial assets and liabilities contrary to the historical cost approach. The chosen approach measures the company’s investments in such parameters like acquisition, training, familiarization, and experience. One of the most serious limitations due to this approach is that assets cannot be sold in case check of valuation is dependent on something. Fair value system also provides comparab ility of assets bought or sold at different time period since it reflects the condition of the market at the present time. Investors are also more concerned with details of the balance sheet and other financial statements (Henri 67). For this reason, its preparation and disclosure will go along in supplementing on the information they have before a critical step of choosing an investment. Securities and Exchange Board Out of all this, the major organization seen to be at the center of the blame is the Securities and Exchange board which seemed to have turned a blind eye in regulating and investigating complaints that had been raised before. The major cause within the board was its Consolidated Supervised Entities program which was supposed to check and investigate on the investment’s bank liquid capability. The program required that an investment bank preserve adequate liquid asset that can last a year (Tibman 54). In Lehman’s case the SEC did not enforce this program despite acquiring enough evidence to enforce legal action against the investment bank. Following a series of stress tests which assesses the level of liquidity, the bank failed to show how it could endure a year without unsecured funding but was allowed to operate. Sarbanes-Oxley Act The Sarbanes-Oxley Act was meant to ensure that no other melt down such as ENRON would be experienced again. The act gives mandates to company boards and accounting firms that are public in addition to transparent and full disclosure of accounting statements. The act also requires the SEC to regulate organizations and companies.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The act seemed reliant on the SEC which at the time was compromised .Commercial banks issued subprime mortgages that had the full security of investment banks such as Lehman. At the time of enacting the act, the onset of such events had not been thought about and no one had imagined that such a blow to Lehman was coming. This was because of the way Lehman was making money out of collaterized debt obligations that were in doubt. In lay mans terms the bonds offered was backed by mortgage pools. It is out of these events that have led to the general public perception that the agencies cannot prevent future accounting fraud. Many Americans questioned do not trust the same bodies that were responsible in aiding the whole economic mess that they are now experiencing. Currently the Sarbanes-Oxley Act has significantly improved the quality of audit. Under the conditions of the Act, the audit services are performed for a public firm and a number of non attest services are performed for the c lients. Such division of services reduces the chances of false and misleading financial statements. As the parties are involved in the preparation of financial statements, they are autonomous and specialize in the chosen sphere of life. For instance, an actuary undertakes actuarial services rather than the auditor. This greatly improves the quality of the financial statements and the information reflected on the statements. The Act also points out the procedures to be followed and the appropriate personnel to undertake related tasks. Therefore, uniformity is upheld while the Act is impartial at the same time. Unruly conduct in preparation of financial statements carries along related punitive measures. Therefore, auditors and other parties remain to be under a strict control and a number of guidelines stipulated. On the one hand, the country wins a lot due to the Act as it is obligatory to control the corporations and analyze their incomes. On the other hand, this Act promotes a cer tain dependence on many outside factors which deprive the companies of a chance to grow and the managers of a chance to earn more. Effects of Credit Crunch The effect of the crisis has made many financial institutions to resort to securitization process. The price of the houses which has also risen sharply has created in the minds of the lenders the perception that it is still not risky. High valued properties have been repossessed from individuals due to the loans which are unpaid. This has led to the increase in popularity of â€Å"self-certified† loans especially in the United States of America (Henri 65) There are the banks that have begun buying securities from other banks. On the one hand, the Collateral Debt obligations could enhance the risk spread, still, on the other hand, these obligations are largely complicated and often do not reveal the bad loans. Apparently no one wants to receive bad news when things seem to be good. In fact, those people whose risks raised c oncerns about security were about to lose their jobs, while those people who try to mitigate risks may face a potential decline in their respective market shares (Krugman 45). Banks consider being â€Å"high street† and involve themselves in a kind of investment, which is through trading, buying and selling risk. On the other hand, investment banks which are not satisfied with trading, that is, buying and selling of the risks have involved themselves in mortgages as well as loans which they have limited management skills/controls thus putting their operations at a more riskier position. It is unfortunate that the use of a financial instrument to lend money and securities as well as reducing risks in the financial service industry has suddenly backfired due to the current economic crisis. Failure of the banks to lend has trickled to the public and this has shattered many people’s confidence. As a result, the lending process has decreased while ceasing to exist in some c ases. Loaners opt to get their money back due to the crashing down of assets and most investment banks have little or no deposits to fall back on. The financial institutions have been collapsing at a shockingly gradual rate (Krugman 89) The sub-prime and the mortgages are not the reasons why there is an economic crisis affecting the financial institutions but they are only the consequences. The main reason for the economic crisis in the financial service industry the weak policies that have been adopted and implemented in the financial sector. For example, during this period, the Federal Reserve has had negative interest rates which force the institutional investments to park money and get return. The mortgage –backed securities have become a favorite investment instrument. Housing investment companies are looking forward to replace the fees earned during the recent economic bubble. (Krugman 67) Under the US requirements by the Federal Reserve, banks are required to have a ce rtain percentage of the capital requirement to back up the loans that they make. Therefore many banks and the financial institutions have Mortgage-based securities assets on their books. This has made them have less capital at hand since to outset the outstanding loans. Therefore they have been forced to raise capital which in the end has raised fears concerning their solvency and this has accounted for the reason why some banks have gone under liquidation. It has been observed that the general economy does not face liquidity crisis since the general economic output is generally up and unemployment is at an average of 7 percent worldwide. The process could soon spread to the capital market certainly (Krugman 110). The problem has become so enormous to a point that even those banks which have huge reserves of capital have run out and therefore they have remained with no option but to approach governments in order to be bailed out. But unfortunately that is not enough to restore peopl es’ confidence. Research shows that banks which are in the process of shrinking normally absorb much money from the countries reserves and the economy as they make an effort to put together their previous capital. New Regulation There have been calls for new regulation following the debacle that followed Bear Stearns and Lehman Brothers (Tibman 102). Calls for the overhaul of Regulations touching on corporate governance have been voiced by scholars and policy makers. In a country where compliance is expensive, these voices are fast becoming the voice of the majority. A good example of how costly it is to comply is how it needs one to re-tool their IT systems and employing more executives dealing with compliance issues. There is also the increased cost of payment to audit committees (Johnasses 23). Conclusion The new regulations that are being called for can lead to a better and more transparent environment for organizations as it will be cheaper for them to audit and report t o the authorities. The example of Lehman Brother Holdings show that it is possible to have high ratings, appropriate costs, and rather beneficial incomes, and still, undergo considerable challenges and financial problems which could lead to downfall. To avoid unpleasant outcomes in huge corporations as well as in small private companies, it is very important to create controlling centers which are able to evaluate the financial situation constantly and consider the changes which come from the outside. Currency improvements or fair value accounting should be controlled thoroughly as they may prevent the managers from observing threats within a particular company. The regulations like the Sarbanes-Oxley Act of 2002 may enhance the already existed standards and limit the activities of the companies within a short period of time, this is why the companies should be ready to take a number of steps in order to avoid losses, gain more benefits, and overcome the conditions which lead to dow nfall. Works Cited Copeland, Mary. Reviving the World Economy and Reforming The Financial Systems. New York: New York publishers, 2008. Henri, Sam. Healthy banks needed for revival. California: The Sidney Morning Herald, 2009. Johnasses, Ben. Sub-prime crisis. London: Sage, 2008. Krugman, Peter. The Return of Depression Economics and the Crisis of 2008. New York :Norton Company Limited, 2009. Sly, Mark. The Reasons behind Global Economic Crisis† in Macro-economics. London, Oxford Publishers, 2008. Tibman, Joseph. The Murder of Lehman Brothers: An Insider’s Look at the Global Meltdown. London: Oxford Publishers, 2009. This term paper on The Fallen of Lehman Brothers was written and submitted by user Brantley Oneill to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Try These Spooky Halloween Science Projects

Try These Spooky Halloween Science Projects Are you ready for some spooky science? These projects and experiments are just right for Halloween. Make your holiday educational as well as fun! Mad Scientist Party - Are you throwing a Halloween bash? Why not give it a mad science theme? Make Spooky Fog - Fog is a great spooky effect. Find it naturally while trick-or-treating or make your own for a party.Creepy Halloween Jack-o-Lantern - Creepy tendrils of fog flow from the carvings of this jack-o-lantern.Green Fire Halloween Jack-o-Lantern - This Halloween jack-o-lantern is filled with green fire.Glowing Pumpkin - A glowing pumpkin is a little more ghastly and creepy than your typical orange pumpkin. This is an easy project that yields a great result.Glowing Hand of Doom Punch - A glowing hand rises from the fog of this bubbling punch. Its the perfect party drink!Glowing Slime - Make glowing slime for a haunted house, a Halloween party, or just because glowing slime is cool.Water into Blood Demonstration - Learn about pH indicators or just use this as a cool trick.Laundry Detergent Glowing Skull - Make a glowing skull decoration using laundry detergent.Homemade Face Paint - Make your own non-toxic Halloween face paint. The base paint is white, though you can customi ze it to be any color you like. Make Fake Blood ... or fake snot, vomit, wounds, or glass.Fake Blue or Green Blood - Blood isnt always red. Spiders, for example, have blue blood. If your Halloween adventure includes blood from another species, you might like this edible blue or green fake blood.Glowing Ink can be used to write eerie glowing messages.Make Colored Fire - Fire is fun, but colored fire can be spooky. Try adding a bit of color to your jack-o-lantern flame.Make a Fizzy Potion - Halloween drinks can bubble and fizz like something a mad scientist might drink.Dry Ice Crystal Ball - All you need is dry ice and bubble solution to create an eerie, long-lasting bubble that resembles a cloudy crystal ball.Halloween Reaction - This clock reaction makes a spectacular Halloween demonstration since the colors change from orange to black. This demo is for the chemistry lab rather than home.Smoke Bomb Jack-o-Lantern - Lighting a homemade smoke bomb inside of a jack-o-lantern is a lot of fun, plus it produces a ton of smoke. Glowing Ice Crystal Ball - This glowing crystal ball is the perfect addition to any Halloween punchbowl, especially if you add a little dry ice, too.

Computer and Network Hardware Assignment Example | Topics and Well Written Essays - 250 words - 1

Computer and Network Hardware - Assignment Example A router is necessary in a network in that they are the paths through which creation of layer 3 takes place (Lammle, 2008). Layer 3 refers to the gateway through which the data transmitted in a network operates and this mainly takes place in OSI model. Routers make use of Internet Protocol commonly known as IP address to pass data across the network. Routers are common in Local Area Networks (LAN) (Lammle, 2008). A collision domain is where collision of data packets takes place on a shared medium mostly in Ethernet networking (Lammle, 2008). On the other hand, a broadcast domain is where any connected device to the network is capable of transmitting data to the other. In a broadcast domain, the data does not have to pass through a router. Finally, a network segment refers to any section of a workstation network depending on the devices used in the network. LAN segmentation is one of the common methods of creating collision domain (Medhi, 2007). The configurations depend on networks needed. With LAN, it is possible to extend the network and isolate faulty networks. It also helps to improve the network security and applicable in creating network domains (Medhi, 2007). LAN segmentation makes of bridges, network switches and routers in configuring the required

Film review fido Movie Example | Topics and Well Written Essays - 250 words

Film fido - Movie Review Example I enjoyed the film due to its unpredictability nature. It has a lot of suspense in it, and the overall movie itself is interesting (humorous). For instance, humor exists when the government comes up with a remote control system of switching off and controlling the zombies (Currie). The major characters of the film are Timmy, Fido, and Hellen. Timmy is a malicious and inhuman character. She kills the zombified next-door neighbor; an act that causes the outbreak whereby many people within the area turn into zombies. The minor characters include Cindy Bottoms, Jonathan Bottoms, Theopolis, and many others (Currie). Generally, the major characters are associated with an anti-societal practice of supporting the zombie practices. The minor characters, on the other hand, are against the infestation of the society by the zombies. The minor characters influence and support the major characters by going against their plans and wishes, thus completing the plot of the film. Action is one of the main techniques that have been used in the movie. It is portrayed when Fido is killing the next-door neighbor (Currie). The technique ensures that the movie maintains its nature, that is, the horror character in it. It also ensures that the plot of the movie is maintained, thus enhancing the theme of the movie. Finally, it depicts the editor’s ability of using various movie techniques and picture and image editing styles. The film is based on a story. It has fulfilled and portrayed the literary work successfully using certain devices such as flashbacks, contrast, and

Discuss the Role that Alfieri Plays Essay Example for Free

Discuss the Role that Alfieri Plays Essay Arthur Millers A View from the Bridge is a modern tragedy set in 1950s Brooklyn about a mans obsession with his niece, and what that obsession ultimately brings about. Eddie Carbone, a hard- working dockworker is the tragic hero of the piece who struggles with how he feels about his niece, Catherine. Miller manages identify and raise many themes concerning the people who lived in the area in which the play was set, themes such as family, justice, respect and death, themes that played a big part in society during that era. Alfieri is the narrator of the play; he is like a sort of Greek chorus in the sense that he divides the scenes with monologues, he also explains to the audience the themes and adds depth to the play. From the very beginning of the play Alfieri hints towards tragedy, he does this a few times in his prologue, for example, he says: I am inclined to see the ruin in things, This tells the audience or readers straight away, at the beginning of the play that Alfieri can see that Eddies story is going to end in disaster. Towards the end of the prologue, it is clear that Alfieri can do nothing to avert the play from tragedy. another lawyer, quite differently dressed, heard the same complaint and sat there as powerless as I, watched it run its bloody course. The quote explains that nobody could do anything to change what is going to happen. It also hints that blood is going to be spilt and someone is going to die. When Marco and Rodolfo first arrive they act very differently, Marco enters the house greets everyone and shows Eddie a lot of respect and thanks him, whereas Rodolfo does not show any gratitude toward Eddie at all. The stage instructions show that Eddie, whenever he asks a question about them, he goes to Marco and totally bypasses Rodolfo. Eddie shows hostility towards him from the very beginning, for example, when Rodolfo starts singing Paper Doll, Eddie interrupts and warns him that by singing it could raise suspicion about them because singing is different and as Eddie says: Because we never had no singers here and all of a sudden theres a singer in the house, yknow what I mean? Eddie begins to act differently, jealous that he is no longer getting all the attention in the house, instead, Rodolfo is getting all of the attention from the women, he doesnt like this so he stops him from singing and uses the excuse above to regain control of the household. The first time Eddie meets Alfieri to see if there is any legal action he can take against Rodolfo to get him away from Catherine. He is now incredibly jealous of Rodolfo and Catherines relationship, this is because of his incest feeling for Katy, Alfieri tells him about how he feels is wrong during their meeting: We all love somebody, the wife, the kids- every mans got somebody that he loves, heh? But sometimes theres too much. You know? Theres too much and it goes where it mustnt. Eddie cannot admit these feelings, and gets annoyed that he cant do anything without immigration officers finding out about Marco and Rodolfo because it would involve betrayal, and that creates conflict within him. On one hand, he could betray Marco and Rodolfo and go against every thing he stands for by telling immigration, but on the other he could leave things as the stand and sit back to watch Catherine get married to Rodolfo and push his feelings aside. It is because Eddie cannot push his feelings for Katy aside that he dies, whatever he did he could not let her grow up. As Alfieri said, he did love her too much in the wrong way. This play could have ended many ways without violence, for instance, if Eddie forgot about his incest feeling or if Marco could have forgiven Eddie and apologised when Eddie demanded for his name, maybe the characters would have acted differently, but because they did not this play demonstrates many examples of betrayal, justice, honour, death and many other themes. Alfieri provides link between scenes and helps the audience understand Eddie and in a way the way he thinks.

When Modernist Tools Go PoMo Essay -- Internet Style Essays

When Modernist Tools Go PoMo Since the internet is a tool largely founded in modernist thought it possesses the ability to eradicate social and historical diversity of style in composition. However, due to the shift of thought entailed in Postmodernism, and the fact that making a website grows easier every day, the shift towards global uniformity of style might be slowing or even reversing. A variety of examples support the argument that the internet is, in fact, not restricting or reducing the development of diversity within composition, but rather is promoting diversity and enforcing the Postmodernist concept of a convoluted reality that defies attempts at classification. To fully understand the assertions made it is important to understand the differences between Modernist and Postmodernist thought, and to know what is meant by cultural and historical diversity of style in composition. Simply put, Modernist theory states that the ideal form is that of a machine. To Modernists, everything is seen in terms of the machine; everything can be observed within the extent of means for conversion of an input or stimulus to an output or reaction. Once viewed this way, the essence of all objects lies in their utilitarian function, and once utilitarianism is the standard by which all things are measured the need for diversity is non-existent. Then, when the assertion is made and substantiated that the internet is in essence a product of this mindset , it can be seen how it can be considered a tool facilitating standardization and the formation of a single universal style for composition. The purpose of this destruction of diversity is for utilitarian efficiency and common understanding. Postmodernism is best understood as ... ...ons. The goal of these sites is stated to be the opposite of what is considered the correct or standard style of composition, and so they fall under the concept of taboo sites that do not conform to standards. Ultimately, the internet is different from the previous forms of mass communication because it exists in a different social context. Thus, it is evident that the internet is considerably more Postmodernist in nature, despite the fact that it is steeped in Modernist foundations of organization and intent. Due to the internet’s origins in Modernist thought it definitely possesses the capabilities to further the Modernist concept of an absolute standardization of style in composition. But as long as the internet remains easily accessible to the general public and open as a forum for international interaction the possibilities for diversity of style are endless.

Business to Consumer Marketing Essay

Increase in the use of Internet use means that marketing on the internet has also gained popularity. People turn towards the Internet to search for basic information on any items they are interested in, whether for personal use or for business, and to a lesser extent they may want to purchase it from the convenience of their home or office. From the business point of view, this means the companies need to pay special attention to their website, as it represents the company in cyber space. Not only the extent of information available on their site, but the user-friendliness of the website, search ability of the site, how fast the website loads, are also important factors. All these factors are also dependent on the target market of the company, whether they are engaged in B2B (business-to-business) or B2C (business-to-consumer) marketing. For instance, B2B customers are more concerned with technical aspect of the product, the warranty provided and the customer services. For B2C customers, the design and over all look of the product may be equally important as the functionalities. This article discusses the differences and similarities between B2C and B2B marketing that should be there in an ideal or a well-planned website. Features of Online Marketing Before being specific about what B2B and B2C marketing should ideally target, I’ll be discussing the common features any marketing site should have. It is also important knowing that a company is represented by one site, and this should give all the relevant information to all its stakeholders, in a manner which is easily accessible and gives only relevant information. The postings on an e-information typically fall into these five categories, according to Etzel, Walker and Stanton (2004): Company Background and General Information: This category covers the history of the company, its mission and vision, corporate philosophy and general orientation. It may also include financial performance of the company and other investor related information, the structure of the company, its operations and global/local divisions and branches, and profile of the management team. This portion is usually accessible to everyone and needs to be presented clearly to both categories of customers – individuals and business consumers. Current Business Operations: This category caters to the company’s customers. This is where division of any kind may come in. For customers this section provides product descriptions, dealer contact information and payment terms and structure. For the business partners, this may consider more technical details, how to contact the relevant business personnel, the different packages available etc. Because the company needs to know about its potential customers, and some of the information in this section may be confidential, access may be restricted by requiring the users to register and give their email address, which allows them to be kept updated with new company’s happenings if they choose to keep updated. This is a place where there is a two-way communication open, minimal though it may be, and companies should focus on those aspects which are valued by their target market. Links:Â  This category has connections to other related sites. This is important for B2B customers who may wish to contact a dealer near their place of business, or to get more information. Attraction and Entertainment Features: This is more important for B2C customers and includes those features and tools which make the site more interesting and unique for customers. For B2B sites, it is more important to be uncluttered, present the information in a style that is easy-to-read and understand, and the site itself should be easy to navigate. Contact Point:Â  This provides usually an email address for visitors, to make a comment or for queries and should also provide a phone number. This is an opportunity to interact directly with the company and is a major advantage of internet over traditional media. However, this should be paid attention to, as unanswered queries and negatively affect the company’s business. B2B Online Marketing: B2B sites specifically cater to corporate clients. This implies that the decision making process is longer for the customers and the company should cater to that. Also, services usually provided are in-house services or regarding maintenance software or similar services to increase the productivity and profitability of the company. The characteristics of B2B sites include an attempt to automate trading process on the website. This is more convenient, saves time as well as money. This is important as even though B2C sites are generally more popular, however, the amount of money in transactions is greater for B2B sites. This means that security is also important for any company, including keeping the information provided by the corporate client. Also, the company should try to differentiate itself from the competition by using and promoting its USP (unique selling proposition). This can be done both online as well as offline using traditional methods of advertising, tradeshows, field sales etc. By automating the processes and as much of their supply chain as possible, the company is saving costs in the long run, thus allowing it to compete on price basis as well. Ideally, B2B sites should also have a registration option for business customers who may wish to learn more. By registering themselves on the site, it allows for more human intervention and a two-way communication. This can make an online business transactions more long lasting which is important in businesses. B2C Online Marketing: Sites which specifically cater to a target group to promote goods and services fall into this category. The more popular sites include Amazon. com and eBay. com. B2C sites are more transaction-oriented in general. Though both sites allow transactions, consumers are usually online and in a position to transact and purchase immediately, as they take less time than businesses for decision making. This is because B2B consumers are more investigative and seek more information from different channels and sources. B2C sites also try to create relationships with customers to enhance the brand loyalty of consumers and ensure that their queries are answered. Though, this is more difficult and companies need to ensure that this process does not adversely harm the operations of the company. B2C sites simultaneously also use offline methods along with online advertising. Online tools can include interactive websites, online communities and discussion forums, email marketing, pop-ups, cost per click advertising such as Google AdWords etc. However, the challenge for any company lies in finding the right mix of advertising and promotion which maximizes profits and minimizes costs. However, good B2C sites allows the consumers to shop faster and in a more convenient manner, offerings and prices obtained are in real-time and can be changed as required and call centres are usually integrated along with the websites allowing interaction between the companies and the end-users. Conclusion: Research shows that more than actual purchase, consumers are using the internet more for research about the product and to make a more informed purchase decision, which is truer for the business consumers. Thus, the company should realize that not all visitors may purchase from their site; however most of them will be researching the company’s products and the information available will be a significant factor in the final decision. This is true to a lesser extent for consumers, because individuals tend to display customer loyalty, thus they may research more to confirm their original decision rather than look at competition’s information. Also, in B2C more emphasis is on price comparisons as customers usually go online shopping to obtain the best price possible. This is also lower than the price in offline stores in some cases as it saves the cost of the intermediary or any dealer involved. In B2B, competition on a global basis ensures that the companies no longer can ignore online marketing and it is necessary to keep up with the competition. Initiatives such as Electronic Data Interchange (EDI) and just in time inventory are changing the way business is being done. This combined with Customer Relationship Management (CRM) ensures that the way companies do business with other businesses has changed and they need to use innovative ways to make their presence felt online. (Furlong, 2001)