Increase Awareness

ACKNOWLEDGEMENT
Our first experience of project has been successfully, thanks to the support
staff of many friends & colleagues with gratitude. We wish to acknowledge all of
them. However, we wish to make special mention of the following.
First of all we are thankful of our project guide Mrs.D.M.N.G.Dissanayaka

under whose guideline we were able to complete our project. We are
wholeheartedly thankful to her for giving us her value able time & attention & for
providing us a systematic way for completing our project in time.
We must make special mention of Mrs.S.Jayapalan, our project in charge

for their co-operation & assistance in solving a technical problem. We would
thank to our H.O.D. Mrs. Mrs.D.M.N.G.Dissanayaka & all lab maintenance staff
for proving us assistance in various h/w & s/w problem encountered during
course of our project.
We are also very thankful to respective Director B.Gajasingha sir who

gave us an opportunity to present this project.
Thank You
CONTENTS
ACKNOWLEDGEMENT
CONTENTS
CHAPTER 01 - INTRODUCTIONS
1.1 Background Of Study
1.2 Problem Research
1.3 Objective of Study
1.4 Methodology of Study
1.4.0 Type of Study
1.4.1 Data Collection
1.5 Limitation of Study
1.6 Theoretical Frame Work
CHAPTER 02 LITERATURE REVIEW

2.1 Organization Awareness
2.2 Capital Reach Leasing Ltd
CHAPTER 03 ENVIROMENTAL ANALYSIS

3.1 Financial Industry
3.2 PEST Analysis of Financial Industry
CHAPTER 04 COMPETITIVE ADVANTAGES
4.1 Introduction
4.2 Competitve Advantages Model INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
4.3 The Value Chain Analysis

4.4 Porter’s Generic Strategies
4.5 Programe Activities of Promotion/Awareness
CHAPTER 05 DATA PRESENTATION & ANALYSIS

5.1Analysis the Customer Questionnaires
5.1.1 Age category of Customers
5.1.2 Category of Gender
5.1.3 Category of Occupation
5.2 Analysis the Public Questionnaires
5.3 Analysis the Staffs Questionnaires
CHAPTER 06 CONCLUSIONS & RECOMMENDATION

6.1 Introduction
6.2 Conclusion
6.3 Recommendation
REFERENCESS
INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

CHAPTER 01
INTRODUCTIONS
1.1 BACKGROUND OF STUDY
For-profit organizations recognize the importance of market research, and have developed many
sophisticated techniques to determine what the public will buy, how to price products and where to locate
business. The success of not-for-profit housing also depends upon understanding the characteristics of
market.
Many organizations make the mistake of becoming attached to a particular production model without doing
the necessary planning and evaluation to make sure it is really appropriate for them and their market. It's
essential to take a careful, analytical look at the community before making program decisions, as choice of
service area has important implications for nearly every other decision make.
Community customer's wants are not necessarily the same as its needs, and are closely related to community
values There may be a number of peoples are earning to median income in Badulla area and they need live in
very normally. Similarly, if residents associate home ownership with single family homes and small yards, a
program to provide ownership opportunities in a limited cooperative may not be very attractive.
Firstly organization awareness is a very importance for every organization decision makes. Awareness
considers in market, customers therefore market awareness using to organization may have a mandate to
work in a certain neighborhood. Organization may be committed to expanding home ownership
opportunities for high, low-income families throughout the city. Market is the community intend to serve. As
the program models suggest, there are a number of strategies to make home ownership or rental properties
more affordable. Many organizations make the mistake of becoming attached to a particular production
model without doing the necessary planning and evaluation to make sure it is really appropriate for them and
their market. It's essential to take a careful, analytical look at the community before making program
decisions, as choice of service area has important implications for nearly every other decision make. And
customer awareness using for create/build the organization goodwill it is give more benefits such as
v
.Increase profit
v
.Reduce Customer Support and Sales Costs
v
.Increase productivity
v
.Minimize price sensitivity
v
.Foster internal customer/supplier relationships
v
. Create a reputation for being a caring, customer-oriented company
v
.Easily Accessible Customer Service
v
.Increase customer satisfaction and retention
v
.Improve its image in the eyes of the customer
v
.Increase Customer Loyalty
v
.Increase Conversion Rates
v
.Increase customer satisfaction and retention
v
.Bring about continuous improvements to the operation of the company
v
.Differentiate itself from the competition
v
.Achieve a maximum number of advocates for the company
1.2 RESEARCH PROBLEM
“Less awareness about the Capital Reach Leasing ltd in Badulla Branch”
1.3 OBJECTIVE OF THE STUDY
MAIN OBJECTIVE
1. Environmental Analysis
1.1. Financial Industry
1.2. PEST Analysis
2. Competitive Advantages
2.1. Competitive Advantages Model
2.2. Value chain analysis
2.3. Generic Strategies
3. Programmers activities of Promotion/Awareness

1.4 METHODOLOGY OF STUDY
1.4.0 TYPE OF STUDY
This is descriptive and quantitative study which analysis organization build/creative

awareness/trust/promotion and new strategies of organization awareness/trust/promotion.
1.4.1 DATA COLLECTION
PRIMARY DATA
The intentions of data collection are fresh. It is the information that is developed or gathered by the
researcher specifically for the research project to be done. There are various ways to collect primary data.
Selecting a collection method depends on the nature of the research to be done.
Here are some ways or methods of collecting primary data.
Interviews
The surveys and personal interviews Badulla Capital Reach Leasing Ltd have conducted Customers and
Badulla Capital Reach Leasing Ltd
In additional of Badulla Capital Reach Leasing Ltd staffs and Badulla area publics are interviewed.
Questionnaires
Questionnaire data are collecting the people about their attitudes, awareness, intentions, characteristics and
behaviors. The Questionnaire sample units 50cutomers, 50publics and 10 office staffs
SECONDARY DATA
Secondary data is collected from external sources such as:

Annual report
· TV, radio, internet
· magazines, newspapers
· reviews
· research articles INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
DATA ANALYSIS AND PRESENTATION
Collection of data's professionally analysis that mean using Marketing models and statistical techniques
such as SWOT analysis, PEST analysis, Value chain analysis, Opportunity analysis, Generic strategies, etc
and present data Tables, Graphs and Descriptive analysis are going to be used.
1.5 LIMITATION OF STUDY
I have faced more problems in conducting this research. There is little limitation.
LIMITATION OF TIME
Lack of time main problem of this research therefore lack of time for preparing questionnaire,
less time of interviews especially office staff's interviews, less time of information collection
and all over not enough time for research preparation.
LIMITATION OF SAMPLES
Firstly selecting area is small for this research and selecting number of samples was little
therefore only selecting 50 customers, 50 publics and 10 office staffs and it is not represent
whole Badulla District
LIMITATION OF INFORMATION
Office manager and other staffs sometime not like to give all information, because
organization security problem not allowed gain all information. Collecting other
information's is not hundred percent matching with this project.

1.6 THEORETICAL FRAME WORK
MARKET COMPANY AWARENESS
BUYERS PRMOTIONAL TOOLS
MARKET MIX
SOCIAL WELFARE
BADULLA
BADULLA CAPITAL REACH LEASING LTD
CUSTOMER AWARENESS

CHAPTER 02
LITERATURE REVIEW
2.1 ORGANIZATION AWARENESS
Organization all activities are looking to customers based that mean consumer was considered as King of the
market but in the contemporary society, consumers are no longer safe against the mal practices such as,
substandard goods and unsatisfactory services. So awareness creation is base of all organization.
Companies creating awareness, image and perception marketing research studies to understand the level at
which consumers are familiar with and have positive opinions about their products or services. A high level
of awareness is important to a company that is trying to grow larger market share. Awareness creation doing
some ways there are
ADVERTISING AWARENESS
Measurement drives efficiency and improvement it any business exchange; especially in advertising. As a
marketing director, need to measure the effectiveness of organization planned or ongoing advertising
campaign. Perhaps need to evaluate awareness of specific promotions. Or goal may be to generate awareness
of ads and brand across a subset of industry insiders. Notice rivals are beginning to reallocate media dollars
and need to understand why .
OBJECTIVES OF AN ADVERTISING AWARENESS STUDY
To improve the return on your advertising dollars spent, trust Direct Opinions to partner with your company.
Our proven methods for creating ad awareness surveys can help your business in three key areas:
Competitive Ad Analysis -- Assess how your product or service offerings are perceived as compared to
your competition. Identify customer expectations that impact satisfaction such as product quality, price,
customer experience or technical support.
Creative Testing -- What headlines, value propositions, and call-to-actions have the greatest marketing
impact in your advertising? Awareness surveys can help uncover your most influential messaging in print
ads, direct mailers, and collateral.
Measuring Advertising Effectiveness and ROI -- You can use ad awareness measurement to determine
which advertisements will cut through the clutter and leave a lasting impression.
BRAND AWARENESS
Branding is the process of developing a relationship with target audience. Target audience includes
people who represent a specific group or market most likely to buy product and/or service, or most
interested in the information you provide.
CULTIVATING A RELATIONSHIP WITH TARGET AUDIENCE IS A 3-PHRASE PROCESS.
Phase 1: Increase Awareness

Introducing organization to target audience, and reinforcing their understanding of who you are and what you
do through continuous communication.
Phase 2: Facilitate Recognition

Moving target audience to a state of recognition, and fostering familiarity. When they see brand or hear name
and/or organization's name, they readily identify it with organization's products and/or services.
Phase 3: Compel Action

Moving target audience from familiarity to a state of trust so they will be confident in making a purchase or
using a service.
Increasing Awareness through the creation and use of brand, and provides insights about the three goals that
organization should focus on in the brand development and utilization process. Ideally, a brand facilitates a
favorable first impression of organization. It provides a visual representation of what is the organization
stand for, and is the key Identity piece that drives loyalty, establishes a brand identity, and provides a
professional look.
3 Goals of the Brand Development & Utilization Process
1) Define identity
Determining and developing the messages that should be communicated to target audience about the
organization.
2) Communicate identity
Determining the most appropriate and effective way that message and/or organization's message should be
graphically communicated to target audience.
3) Make a connection
Understanding the importance of continuous use of identity, and incorporating identity into various
communication mechanisms to increase awareness about the organization.
Awareness level measures whether consumers know about and are familiar with a company, organization,
product, or service. Awareness can be measured in two forms:
The extent to which consumer's think of a company or product on a top-of-mind basis in unaided INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
awareness. A survey might ask, "When you think of companies that provide these kinds of products, which
company first comes to mind?"
The extent to which consumers who know about a company or product are familiar with that
company or product is aided awareness. A survey might ask, "How familiar are you with this company?
Would you say you are very familiar, somewhat familiar, or not familiar?”
Awareness created after build organization trust that is help to retaining customers all over life time .it is
very important every activities and like organizational identity, trust can be examined at different levels.
Trust at the level of organizations refers to a collective commitment and cooperation in order to achieve
organizational goals. At the individual level, trust affects to willingness to co-operate and to commit to
organizational changes. Trust has been described as the “social glue” that can hold different kind of
organizational structures together Trust is an essential element in constructive human relationships. It
creates togetherness and gives people a feeling of security. Trust is expressed at three levels within an
organization: individual, group and system level.
At the individual level, trust is based on interpersonal interaction. Trust can be defined as “the willingness of
a party to be vulnerable to the actions of another party, based on the expectation, that the other will perform a
particular action important to the trustor, irrespective of the ability to monitor or control that other party.”
Willingness to be vulnerable, to say take a risk, implies that there is something of importance to be lost.
Different definitions and models of trust focus on features such as integrity, competence, openness,
vulnerability, reliability and positive expectations .These features refer to trust as a positive expectation, that
another person will not – through words, actions or decisions – act opportunistically.
At the group level, trust is a collective phenomenon. Teams represent collective values and identities.
Interactional histories give information that is useful in assessing dispositions, intentions and motives of
others. Individuals' judgments about others' trustworthiness are anchored, at least in part, on their priori
experiences about the others behavior .As values are commonly believed to guide behavior, sharing common
values helps team members to predict each other's and leaders' behavior in the future. Shared values and
shared goals reduce uncertainty, but also determine which types of behaviors, situations or people are
desirable or undesirable. Teams also have rule-based trust. Rules, both formal and informal, include the
knowledge that members have about tacit understandings. Rule-based trust is predominantly shared
understandings relating to the system of rules regarding appropriate behavior. By institutionalizing trust
through practices at the collective level, trust becomes internalized at the individual level.
At the system level, trust is institutional and based on roles, systems or reputation, from which inferences are
drawn about the trustworthiness of an individual. Trust can be seen as given, based on the role that an
individual acts. Trust is tied to formal structures, depending on individual or firm specific attributes.
Trust in organization refers to the global evaluation of an organization's trustworthiness as perceived by the
employee. Employees continually observe the organizational environment when they consider whether or
not to trust their organization. Organizational processes communicate the organization's views of its
employees and their roles, and employees will respond to trust relations communicated by the organization.
Companies and organizations use market awareness and perception research to support their key operational
and marketing decisions. Clients use the results to guide decisions about mission, goals, product design,
customer service, personnel, delivery, marketing, communications, and public relations.

2.2 CAPITAL REACH LEASING LTD
Capital Reach Holdings Ltd (CRHL), a financial services provider incorporated in 2005 is the holding
company of 3 subsidiaries namely Capital Reach Leasing Ltd (CRLL), Capital Reach Credit Ltd (CRCL)
and Capital Reach Business Development (Pvt) Ltd (CRBDL). CRHL is involved in business rescue and
turnaround services, consultancy services and project formulation, implementation and management
services. Capital Reach Leasing Ltd is a Registered Finance Company incorporated in 1999 and licensed by
the Central Bank of Sri Lanka under the Finance companies Act of 78 of 1988.
The new equity investment which flowed in to the company in 2005 heralded a period of growth and gave the
company the ability to focus on areas of strength allowing it to bypass threats in the market.
The company provides Finance Leasing and Hire purchase facilities and accepts fixed deposits and savings.
In 2008 CRLL established a unit for development and sale of property.
CRLL is manned by a team of professional staff with vast experience in Marketing and Finance and is geared
to provide the highest quality service to its clientele.
Capital Reach Leasing Ltd is a specialized Leasing Company incorporated in 1999 and offers a variety of
leasing services including Finance Leases, Operating Leases and Hire Purchase Financing.
Capital Reach Credit Ltd was incorporated in 1999 to engage in Working Capital Finance and Personal
Credit.
Ours is a team of talented, hand-picked, multi-disciplinary individuals, who are practical and results-
oriented. We engage persons from a variety of disciplines including marketing, finance and legal and we are
looking for those individuals with well rounded personalities and versatile interests who would be willing to
grow alongside with us. The Capital Reach Group offers excellent career progression through training,
challenging work and exposure to versatile areas of business.
Additionally the Group has a branch network of 8 branches throughout Sri Lanka through which we offer all
our products and services
Colombo
BRANCH NETWORK 1, Lake Crescent,
Colombo 2,
Sri Lanka.
Badulla
30,
Anagarika Dharmapala
Mawatha,
Badulla,
Sri Lanka.
Chilaw
66, Ground Floor,
Kurunegala Road,
Chilaw,
Sri Lanka.
Galle
16 A,
Gamini Mawatha,
Galle,
Sri Lanka.
Kaduruwela
125, Batticaloa Road,
Polonnaruwa,
Sri Lanka.
Kandy
No.165,
Kotugodella Veediya,
Kandy,
Sri Lanka.
Matara
8C, 2nd Floor,
F. N. Building,
Station Road,
Matara,
Sri Lanka.
Nuwara Eliya
36,
Park Road,
Nuwara Eliya,
Sri Lanka.
Rathnapura
1/200, Ground Floor,
Main Street,
Rathnapura,
Sri Lanka.
BOARD OF DIRECTORS
TEAM OF PROFESSIONALS
Company is a team of talented, hand-picked, well-respected, highly-recognized, immensely-successful,

multi-disciplinary Consultants, who are practical and results-oriented. They engage leading specialists in the
relevant fields in all consultancy assignments so that they can truly deliver *value-added* services to
customer. They range of services, skills and reach is extensive. It enables us to examine customer issues and
problems from various angles. Should the complexity of customer assignment require even wider skills than
they originally envisaged, they will source the necessary skills to deliver what they promised.
All they Team members possess positive frames of mind and are confident that they can deliver...customer
requirements...on time...every time.
Mr. Mayura Fernando – (Chairman)

Mr. Nalin Wijekoon – (Managing Director)
Mr. Daya Muthukumarana
Mr. Ranjit De Silva
Mr. Sirinimal Jayawardhane
Mr. Anura Fernando
Mr. Prakash Schaffter
MISSION STATEMENT OF CAPITAL REACH LEASING LTD.
VISION
“To be the preferred non banking financial institution in Sri Lanka”
MISSION INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
v
.To strive to delight our customers through custom made financial solutions, served through our
professional and highly motivated team, committed to excellence.
v
. To create shareholder value through stability and above average returns
v
.To sustain our continued commitment to being a good corporate citizen, and make a positive
contribution to the community and environment.
PRODUCTS AND SERVICES OF BADULLA CAPITAL REACH LEASING LTD.
Capital Reach Leasing Ltd has complete products and services are category to age groups. Products and
services are dividing four types there are
v
Lending Products
v
Fixed Deposit Products
h
v
Saving Products
v
Real Estate
LENDING PRODUCTS. h Harvest Lease - Aswanne
Hire purchase - Janahitha

h Entrepreneur's Lease - Supiri
h
h
LENDING PRODUCTS
h
Operating Lease- Victory
Sale and Lease Back - Atamita
Equal Installment Lease – Piripun
Harvest Lease - Aswanne
A Finance Lease specially designed for the agricultural sector – seasonal payments to match with the
harvesting period
Entrepreneur's Lease - Supiri

This is specially designed to match the cash flows of the client. Payment is via a lump sum at the end of the INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
lease period instead of at the beginning
Sale and Lease Back - Atamita

A facility will help customer to overcome temporary cash flow constraints. Allows customer to obtain cash/
working capital by re-selling an asset
Equal Installment Lease – Piripun

Specially design for the Trading sector
Operating Lease- Victory

Provides with maintenance and without maintenance for any client looking for medium term usage of an
asset.
Hire purchase - Janahitha

Gives tax advantages
FIXED DEPOSIT PRODUCTS.
Capital Reach Leasing Ltd is a Registered Finance Company under the Central Bank of Sri Lanka as well as a
Registered Finance Leasing Company (Reg. No.s 30 and FLA56). It has over 7 years of profitable operations
behind it.
They invite customer to invest in their Fixed Deposit schemes and take advantage of the attractive
introductory rates and valuable gift opportunities.
Other than the General fixed deposit, they have designed three Fixed Deposit products specifically to suit
customer differing needs and they hope that customer will receive the maximum benefit from this
differentiation.
v
.General fixed deposit
v
.Three Fixed Deposit
Junior savers deposit A deposit for the modern woman Senior citizens
SAVING PRODUCTS.
Itumina Savings
?

REAL ESTATE

CHAPTER 03
ENVIROMENTAL ANALYSIS
3.1 FINANCIAL INDUSTRY
The Financial Market, which is the market for credit and capital, can be divided into the Money Market
and the Capital Market. The Money Market is the market for short-term interest- bearing assets with
maturities of less than one year, such as Treasury bills, commercial paper, and certificates of deposits.
The major task of the Money Market is to facilitate the liquidity management in the economy. The main
issuers in the Money Market are the Government, banks and private companies, while the main investors
are banks, insurance companies and pension and provident funds. The Capital Market is the market for
trading in assets for maturities of greater than one year, such as Treasury bonds, private debt securities
(bonds and debentures) and equities (shares). The main purpose of the Capital Market is to facilitate the
raising of long-term funds. The main issuers in the Capital Market are the Government, banks and
private companies, while the main investors are pension and provident funds and insurance companies.
The Financial Market can be also be classified according to instruments, such as the debt market and the
equity market. The debt market is also known as the Fixed Income Securities Market and its segments
are the Government Securities Market (Treasury bills and bonds) and the Private Debt Securities Market
(commercial paper, private bonds and debentures). Another distinction can also be drawn between
primary and secondary markets. The Primary Market is the market for new issues of shares and debt
securities, while the Secondary Market is the market in which existing securities are traded.
The Central Bank through its conduct of monetary policy influences the different segments of the
Financial Market in varying degrees. The Central Bank's policy interest rates have the greatest impact on
a segment of the Money Market called the inter-bank call money market and a segment of the Fixed
Income Securities Market, i.e. the Government Securities Market. The Central Bank may also intervene
in the inter-bank Foreign Exchange Market, which is closely connected to the Money Market.
In finance, financial markets facilitate –
The raising of capital (in the capital markets);
The transfer of risk (in the derivatives markets);
International Trade (in the currency markets)
Types of financial markets

The financial markets can be divided into different subtypes:
· Capital markets which consist of: INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
o Stock markets, which provide financing through the issuance of shares or common stock,
and enable the subsequent trading thereof.
o Bond markets, which provide financing through the issuance of bonds, and enable the
subsequent trading thereof.
· Commodity markets, which facilitate the trading of commodities.
· Money markets, which provide short term debt financing and investment.
· Derivatives markets, which provide instruments for the management of financial risk.
o Futures markets, which provide standardized forward contracts for trading products at
some future date; see also forward market.
· Insurance markets, which facilitate the redistribution of various risks.
· Foreign exchange markets, which facilitate the trading of foreign exchange.
The capital markets consist of primary markets and secondary markets. Newly formed (issued) securities
are bought or sold in primary markets. Secondary markets allow investors to sell securities that they hold
or buy existing securities.
Without financial markets, borrowers would have difficulty finding lenders themselves. Intermediaries
such as banks help in this process. Banks take deposits from those who have money to save. They can
then lend money from this pool of deposited money to those who seek to borrow. Banks popularly lend
money in the form of loans and mortgages.
More complex transactions than a simple bank deposit require markets where lenders and their agents can
meet borrowers and their agents, and where existing borrowing or lending commitments can be sold on to
other parties. A good example of a financial market is a stock exchange. A company can raise money by
selling shares to investors and its existing shares can be bought or sold.
The following table illustrates where financial markets fit in the relationship between lenders and borrowers
Relationship between lenders and borrowers
Lenders Financial Intermediaries Financial Markets Borrowers
Interbank Individuals
Banks
Stock Exchange Companies
Individuals Insurance Companies
Money Market Central Government
Companies Pension Funds
Bond Market Municipalities
Mutual Funds
Foreign Exchange Public Corporations
Performance Indicators of key variables in Sri Lanka

Financial System Stability
Financial system stability means a safe and secure financial system which is able to withstand external and
internal shocks. A stable financial system creates a favorable environment for depositors and investors,
encourages financial institutions and markets to function effectively and efficiently, and hence, promotes
investment and economic growth. Financial system stability requires a stable financial and economic
environment within an effective regulatory framework and a safe and robust payment and settlement system.
The maintenance of financial system stability entails identifying and addressing potential vulnerabilities and
risks to the financial system.
# Creating a trust-worthy and enabling environment favorable to savers and investors

# Helping the transmission of monetary policy, thereby assisting the attainment of price stability
# Encouraging efficient financial intermediation, which eventually promotes investment and growth,
and
# Encouraging effective and efficient operation of markets and improving distribution of resources in
the economy
Structure of the Financial System
The financial system in Sri Lanka comprises the major financial institutions, namely the Central Bank of Sri
Lanka, licensed commercial banks (LCBs), licensed specialized banks (LSBs), registered finance
companies (RFCs), specialized leasing companies (SLCs), primary dealers (PDs), pension and provident
funds, insurance companies, rural banks, merchant banks, unit trusts and thrift and credit co-operative
societies; the major financial markets, such as the foreign exchange market, money market, capital market
and the informal financial market ; and the financial infrastructure which is the legal framework related to the
financial system and the payment and settlement.
Objective of Financial System Stability
The objective of financial stability is much wider than the objective of financial sector supervision. Financial
sector supervision follows a micro prudential perspective of examining each financial institution's
performance and health to safeguard the interests of depositors and To promote the soundness of financial
institutions. Financial system stability follows a macroeconomic perspective of examining the overall
functioning and stability of the system including all clearing systems, the PSS as well as exchanges and
depositories for securities etc. Although there could be a large number of financial institutions, the health of
the financial system could be disturbed by the failure of a few major players, or Systemically Important
Financial Institutions (SIFIs). Hence, the financial health of these institutions is important for a stability INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
framework, and it, in turn, depends on the wellbeing of their clients as well as in the internal efficiency of
those institutions. The macroeconomic environment, both international and domestic, could affect financial
institutions and their clients and the entire financial system. What are the benefits of the system stability to
the general public? Let us try to simplify this Statement. Our day-to-day life requires various forms of money
transactions. Most of these Transactions require various services from the financial system to perform better.
Some of us receive our income directly to our bank accounts or in cheques which are payable through banks.
We can keep our savings in various deposits and investments offered by banks and financial Institutions
while receiving interest income. In the event of urgent needs, we can withdraw our Savings from the
institutions or through automated teller machines maintained by such Institutions. We can make payments to
various parties through bank accounts or other payment Methods such as credit cards operated by the banks.
Bank accounts provide a large number of Businessmen and firms with a most convenient means of
depositing their sales proceeds and to make payments to various parties.
Financial institutions provide various types of loans to People who are in need of finance for the businesses
and consumption purposes at a charge of interest. Exporters, importers and foreign travelers undertake their
foreign exchange Transactions through banks. Some of us receive money from friends and relatives abroad
through Banks. We can pay our utility bills through banks. Likewise, one can give a long list of such services
provided by the financial institutions to facilitate our money transactions. When we part with our Money, we
should be confident that they are safe with the institutions.
Present Position of Sri Lanka

Sri Lanka's finance industry has shown steady growth. It grew by 3.8 percent in the first quarter of 2009, with
an economic growth rate of 1.5 percent.
The lending credit growth slowed down in the first quarter and there is an increase in the non-performing
loans.
At present all registered financial institutions are in a stable position to cope with a substantial capital, an
official of the CBSL told Daily News Business.
"Due to the global economic downturn, there is an economic slowdown in the country, but as Sri Lanka has a
growing economy we will recover soon. With the ushering of peace there is an expansion in all sectors of the
economy. As a result, the Central Bank of Sri Lanka (CBSL), expects an economic growth of 4.5 percent in
2009." INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
All development projects that are under construction in the Northern and Eastern provinces will add more
importance to the country's economic growth and we hope to open banking institutions there, the official
said.
At present the finance industry is facing the challenge of reviving the growth of credit and with the
development programs the situation will improve.
As development activities require machinery and equipment, there will be a big demand for leasing and
finance institutions in the Northern and Eastern provinces.
The CBSL expects to introduce a new Finance Act, to strengthen the current regulations in the finance
industry. The new law will restrict all unauthorized financial institutions.
By strengthening the laws in the finance industry, the public will have more confidence in the investments
and that will enhance deposits.
Meanwhile, a media report yesterday stated that the Central Bank of Sri Lanka, which regulates Registered
Finance Companies in Sri Lanka, has accepted in principle a proposal made by the Securities and Exchange
Commission of Sri Lanka (SEC) to list Registered Finance Companies in the Colombo Stock Exchange.
According to the Media report, Director General of the SEC Channa de Silva said Sri Lanka's Registered
Finance Companies mobilized a substantial amount of savings in the country and this proposal is a move to
increase the level of public scrutiny, accountability and transparency, he said.
Listing on the Colombo Stock Exchange would enable these institutions to derive a wide range of benefits
including improved visibility, enhancement of brand image and access to raise substantial capital.
By obtaining a listing, the financial reporting and public disclosure levels of these institutions would be
monitored by the Colombo Stock Exchange and the Securities and Exchange Commission in addition to the
Central Bank's present regulatory scrutiny on operations, it said.
The proposal to list the Registered Finance Companies would undoubtedly be a timely measure to further
strengthen and enhance public confidence in finance entities, in the wake of the recent financial scandals
which currently led to the decline of public confidence, the statement by the SEC said.

3.2 PEST ANALYSIS OF FINANCIAL INDUSTRY
POLITICAL
# The Heads of State or Government were of the view that stability, peace
And security in South Asia should be promoted together with efforts to
Improve the global security environment.
# The Leaders emphasized the need to take appropriate measures to make international financial
institutions and the global trading regime more responsive to the needs and concerns of the
developing countries. They reiterated the call for genuine partnership among the developed and
developing countries in international trade and finance and for the reform of the global financial
architecture with an enhanced level of resources.
# Focus on credit quality and financial market conditions for maintaining

Macroeconomic, in particular, financial stability.
# Monetary and interest rate environment enabling growth momentum consistent with price stability.
Exchange Rate Management:
In recent years, the annual policy Statements as well as mid-term Reviews have attempted to brings
into sharper focus the main lessons emerging from our experience in managing the external sector
during periods of external and domestic uncertainties. As articulated in the policy Statements in the
recent years, the broad principles that have guided exchange rate management are:
· Careful monitoring and management of exchange rates without a fixed target or a pre-
announced target or a band. Flexibility in the exchange rate together with ability to intervene,
if and when necessary.
· A policy to maintain a level of foreign exchange reserves which takes into account not only
anticipated current account deficits but also 'liquidity at risk' arising from unanticipated
capital movements.
# Conversion of non-tradable government securities into tradable SLR securities

Will help beneficiary banks raise additional resources for lending to the productive sectors in light of
increasing credit needs of the economy.
# War, inefficiency, bribery, corruption , extortion, fraud, nepotism, cronyism, terrorism, frittering
away public funds by the politicians and high ranking public servants, high energy costs, high INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
inflation, uncontainable exchange rates, attitude problems are some of the factors that made things
worse for our country. However, though the recent global crunch only added just one more factor to
the hit list, the blow it can turn about could be severe due to its rapid and swift augmentation
throughout. In every probability, there is no way Sri Lanka can keep away from the effects of
economic recession but certainly the authorities could think and act sensibly towards finding ways of
minimizing the impact by adopting proper policies. Most of all, the important thing is to adopt
proactive policies
ECONOMIC
# The Heads of State or Government agreed to accelerate cooperation in the core areas of trade,
finance and investment to realize the goal of an integrated South Asian economy in a step-by-step
manner. They expressed their determination to make full use of regional synergy to maximize the
benefits of globalization and liberalization and to minimize their negative impacts on the region.
While recognizing that trade and economic expansion is closely inter-linked, the Leaders made a
commitment to widen and deepen the scope of regional networks of activities in trade and
financial matters.
# Keeping in mind the impact of real sector shocks on financial stability, any assessment of the
banking sector needs to be done in the backdrop of national as well as international economic
outlook.
# Now begun to feel the heat of ill-effects of the world economic recession despite various
optimistic statements made by politicians and the top brass at high echelons in the government.
Hundreds of private sector establishments in a number of fields have been shut down and
employees are facing challenges they never ever thought could be realities.
# Around one million expatriate workers distended all over the world mainly in the Middle East,
remit increasing amounts of Dollars to inject strength into our ailing economy. This top foreign
exchange earner of our country is facing the risk of slamming the brakes on worker remittances
as a result of the global financial crisis which would rigorously intensify our economic
wretchedness.
# Strongest economy on earth with ubiquitous assets and gigantic martial command escorting the
economic, political, intellectual and military supremacy over all other nations is where the
tribulation set in motion. Financial, trading, service and production sectors in the world market are in
ruins; banking institutions, investment companies, insurance and other asset management
companies have crashed. Even Europe, Japan and Australia are going through the same fate. At the
rate the financial crisis is swallowing up the world in full bloom and the credit crunch is munching the
global markets in style, frail economies such as ours have no chance of standing alone. Most
disturbing question is how long can we stand this situation? With all the efforts the world high powers
are putting in, recuperation of the global trade and industry is at least a couple of years away. When
the global financial crisis hit on the head, our economy was already burning in turmoil.

SOCIAL AND CULTURE
Demography and CRM (Customer relationship Management)
# Over the years, financial companies have expanded to cover a large geographic & functional area
to meet the developmental needs. They have been managing a world of information about
customers - their profiles, location, etc. They have a close relationship with their customers and a
good knowledge of their needs, requirements and cash positions. Though this offers them a
unique advantage, they face a fundamental problem.
Furthermore, financial companies need to have very strong in-house research and market
intelligence units in order to face the future challenges of competition, especially customer
retention. Marketing is a question of demand (customers) and supply (financial products &
services, customer services through various delivery channels). Both demand and supply have to
be understood in the context of geographic locations and competitor analysis to undertake
focused marketing (advertising) efforts.
# Customer-centricity also implies increasing investment in technology. Throughout much of the

last decade, financial companies world-over have re-engineered their organizations to improve
efficiency and move customers to lower cost, automated channels, But this need not be the case.
As is proved by the experience, financial companies are now realizing that one of their best assets
for building profitable customer relationships especially in a developing country like Sri Lanka is
the branch-branches are in fact a key channel for customer retention and profit growth in rural
and semi-urban set up. However, to maximize the value of this resource, financial companies
need to transform their branches from transaction processing centers into customer-centric
service centers. This transformation would help them achieve bottom line business benefits by
retaining the most profitable customers. Branches could also be used to inform and educate
customers about other, more efficient channels, to advise on and sell new financial instruments
like consumer loans, insurance products, mutual fund products, etc.
# There are active efforts to develop a relationship oriented model of operations focusing on
customer-centric services. The biggest challenge our banks face today is to establish customer
intimacy without which all other efforts towards operational excellence are meaningless. The
banks need to ensure through their services that the customers come back to them. This is
because a major chunk of income for most of the banks comes from existing customers, rather
than from new customers.
TECHNOLOGY
# Technology will bring fundamental shift in the functioning of Financial Companies. It would not
only help them bring improvements in their internal functioning but also enable them to provide
better customer service. Technology will break all boundaries and encourage cross border
financial business. Financial Companies would have to undertake extensive Business Process Re-
Engineering and tackle issues like
· how best to deliver products and services to customers
· Designing an appropriate organizational model to fully capture the benefits of technology
and business process changes brought about.
· How to exploit technology for deriving economies of scale and how to create cost
efficiencies, and
· How to create a customer - centric operation model.
# Internet technologies are significantly reducing the cost and increasing the speed of information
transfer between manufacturers, channel partners, and customers, challenging the dynamics of the
traditional value chain. Relationships with end customers are no longer solely the domain of
channel partners. Today, manufacturers are actively seeking direct interaction with customers.
The challenge is how to obtain that direct interaction while still leveraging the value-add of
channel partners.
# Latest technology through to archive following goal easily

? Improve visibility into customer behavior and preferences to better fulfill customer
demand and improve product planning and production.
Communicate product attributes and key selling themes directly to customers to

?
control and improve the customer experience
Leverage the sales opportunity to dynamically up-sell and cross-sell related products.
?
# Technology solutions would make flow of information much faster, more accurate and enable
quicker analysis of data received. This would make the decision making process faster and more
efficient. For the Banks, this would also enable development of appraisal and monitoring tools
which would make credit management much more effective. The result would be a definite
reduction in transaction costs, the benefits of which would be shared between banks and
customers.
# Apart from bringing about a change in the functioning of the banks both horizontally and
vertically, technology has an important function to perform in developing a payments system

network through which funds can be transmitted at less cost and quickly.
# While application of technology would help banks reduce their operating costs in the Long run,
the initial investments would be sizeable.
CHAPTER -04
COMAPETITIVE ADVANTAGES
4.1 INTRODUCTION
In recent years, inter-organizational competition has not only intensified, its nature has fundamentally
changed: it has become more knowledge based, and the sources of competitive advantage have shifted
unmistakably from physical assets to intellectual Resources While this emergent knowledge-based
competition has affected a wide spectrum of organizations, it has raised some particularly significant
challenges for firms competing internationally. The home-based sources of knowledge and 'ownership
advantages' that had long enabled organizations to compete effectively in international markets are no
longer adequate today. Global rivals now wrest competitive initiative by harnessing knowledge from
sources in multiple countries in order to generate new product ideas as well as to build manufacturing
know-how and technological strength. Indeed, with the increasing globalization of our economy, the
ability to transfer and deploy knowledge across borders has become one of the central competitive
concerns for many organizations.
Competitive advantage occurs when a firm uses its resources and capabilities to develop organizational
competencies that, in turn, create value for customers.
Some think that competitive advantages must be unique to a single firm. While that would be a
wonderful achievement for any organization, holding such a singular position in the world of commerce
is not mandatory or even the norm. The search for a one-of-a-kind variable to base competitive
advantage on actually deters many companies from pursuing any competitive advantages at all. Finding
a unique item can be such a daunting task that there just does not seem to be enough time and energy to
devote to developing a competitive advantage. Management often already feels so overwhelmed and
overworked that the concept of competitive advantage is not given much more than lip service.
Competitive advantage for its own sake is not the end. In Competitive Strategy (1980), Michael E. Porter
identified various strategies and competitive advantages that could allow a business the opportunity to
successfully implement. These strategies include: (1) offering superior customer value via product
differentiation, and/or (2) operating with lower relative costs. Possible outcomes of these two positions
include higher customer satisfaction and retention, greater market share, lower prices and more
profitability.
It is the responsibility of management to develop an organizational outlook that recognizes the
importance of finding ways to increase customer value through their offerings and make sure the
determinants of competitive advantage are nurtured and carried out.
Qualities of competitive Advantage INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
* Competitive advantage is strongest when sustainable-i.e., difficult or very expensive for competitors to
replicate.
* Competitive advantage does not mean a firm must hold this "ultimate" advantage over every
competitor in the industry. The variable comprising the advantage might be held by more than one
business in an industry. There is little argument that a competitive advantage held by a single business
is to be prized. But consider that a competitive advantage shared by the businesses in the top 10
percent or upper third of an industry, while not unique, is far better than not having the competitive
advantage and being one of the lower-tiered firms.
* Competitive advantage must be something that, whether recognized or not by consumers, ultimately
creates increased value for customers. Competitive advantages must be proven beyond the beliefs held
within a firm. Ultimately, they will be judged in the marketplace
* Organizational competencies are the foundation of competitive advantage.

Resources and capabilities can lead to competencies
Organizational competencies are created through the strategic use of organizational resources and
capabilities. Competencies can lead to competitive advantages.
Examples of organizational resources include financial, human, plant and location, patents and trade secrets,
trademarks and copyrights, and brand image.
Organizational capabilities are dictated by how these resources are integrated and utilized. For example,
combining a firm's human and financial resources might result in a high degree of marketing skill and
capability. Other areas of organizational capabilities include the areas of management, production, finance,
legal, research and development, and management information systems.
Competencies are a key to competitive advantage

Organizational competencies are the basis of gaining a competitive advantage over rivals. However, not all
organizational competencies are created equal. Competencies fall into three categories:
(1) distinctive.
(2) shared.
(3) non-relevant.
Distinctive organizational competencies are those that are unique to one or very few companies in an
industry. Such competencies increase the value customers obtain in the business' offerings. Distinctive
competencies lead to sustainable competitive advantages for the businesses that use them wisely.
Shared competencies are those that, while not one-of-a-kind, are not widely held by rival businesses. These
competencies include the use of resources and capabilities that allow a firm to conduct its business in a
successful manner within its industry. While shared competencies are more commonplace than distinctive
competencies, they are valuable due to their role in a firm's ability to offer increased value to customers.
Non-relevant competencies are those areas that a business's does well, and even takes pride in doing, but do
not increase value for the customers. Non-relevant competencies can have a negative impact on the firm as
they use the business's limited resources and may actually direct management focus on areas that are not
strategically important to the long-term health of the organization. A business with a non-relevant
competency has three options: (1) do nothing with the non-- relevancy and conduct business as usual; (2)
cease the practice altogether; or (3) turn it into distinctive competency.

4.1 COMPETITIVE ADVANTAGES MODEL
When a firm sustains profits that exceed the average for its industry, the firm is said to possess a
competitive advantage over its rivals. The goal of much of Business strategy is to achieve a sustainable
competitive advantage.
Michael Porter identified two basic types of competitive advantage:

Cost advantage
Differentiation advantage
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a
lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation
advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and
superior profits for itself.
Cost and differentiation advantages are known as positional advantages since they describe the firm's
position in the industry as a leader in either cost or differentiation.
A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a
competitive advantage that ultimately results in superior value creation. The following diagram combines
the resource-based and positioning views to illustrate the concept of competitive advantage:
Resources and Capabilities

According to the resource-based view, in order to develop a competitive advantage the firm must have
resources and capabilities that are superior to those of its competitors. Without this superiority, the
competitors simply could replicate what the firm was doing and any advantage quickly would disappear.
Resources are the firm-specific assets useful for creating a cost or differentiation advantage and that few
competitors can acquire easily. The following are some examples of such resources:
· Patents and trademarks
· Proprietary know-how
· Installed customer base
· Reputation of the firm
· Brand equity
Capabilities refer to the firm's ability to utilize its resources effectively. An example of a capability is the
ability to bring a product to market faster than competitors. Such capabilities are embedded in the routines of
the organization and are not easily documented as procedures and thus are difficult for competitors to
replicate.
The firm's resources and capabilities together form its distinctive competencies. These competencies enable
innovation, efficiency, quality, and customer responsiveness, all of which can be leveraged to create a cost
advantage or a differentiation advantage.
Cost Advantage and Differentiation Advantage
Competitive advantage is created by using resources and capabilities to achieve either a lower cost structure
or a differentiated product. A firm positions itself in its industry through its choice of low cost or
differentiation. This decision is a central component of the firm's competitive strategy.

4.3 THE VALUE CHAIN ANALYSIS
To analyze the specific activities through which firms can create a competitive advantage, it is useful to
model the firm as a chain of value-creating activities. A value chain is a chain of activities. Products pass
through all activities of the chain in order and at each activity the product gains some value. The chain of
activities gives the products more added value than the sum of added values of all activities. It is important
not to mix the concept of the value chain with the costs occurring throughout the activities
The value-chain concept has been extended beyond individual organizations. It can apply to whole supply
chains and distribution networks. The delivery of a mix of products and services to the end customer will
mobilize different economic factors, each managing its own value chain. The industry wide synchronized
interactions of those local value chains create an extended value chain, sometimes global in extent. Porter
terms this larger interconnected system of value chains the "value system." A value system includes the value
chains of a firm's supplier (and their suppliers all the way back), the firm itself, the firm distribution channels,
and the firm's buyers (and presumably extended to the buyers of their products, and so on).
The goal of these activities is to create value that exceeds the cost of providing the product or service, thus
generating a profit margin.
Inbound logistics include the receiving, warehousing, and inventory control of input materials.
Operations are the value-creating activities that transform the inputs into the final product.
Outbound logistics are the activities required to get the finished product to the customer,including
warehousing, order fulfillment, etc.
Marketing & Sales are those activities associated with getting buyers to purchase the product, including
channel selection, advertising, pricing, etc.
Service activities are those that maintain and enhance the product's value including customer support, repair
services, etc.
Any or all of these primary activities may be vital in developing a competitive advantage. For example,
logistics activities are critical for a provider of distribution services, and service activities may be the key
focus for a firm offering on-site maintenance contracts for office equipment.
These five categories are generic and portrayed here in a general manner. Each generic activity includes
specific activities that vary by industry.
Support Activities
The primary value chain activities described above are facilitated by support activities. Porter identified
four generic categories of support activities, the details of which are industry-specific.
Procurement - the function of purchasing the raw materials and other inputs used in the value-creating
activities.
Technology Development - includes research and development, process automation, and other technology
development used to support the value-chain activities.
Human Resource Management - the activities associated with recruiting, development, and compensation
of employees.
Firm Infrastructure - includes activities such as finance, legal, quality management, etc.
Support activities often are viewed as "overhead", but some firms successfully have used them to develop a
competitive advantage, for example, to develop a cost advantage through innovative management of
information systems.
Value Chain Analysis

In order to better understand the activities leading to a competitive advantage, one can begin with the
generic value chain and then identify the relevant firm-specific activities. Process flows can be mapped,
and these flows used to isolate the individual value-creating activities.
Once the discrete activities are defined, linkages between activities should be identified. A linkage exists if
the performance or cost of one activity affects that of another. Competitive advantage may be obtained by
optimizing and coordinating linked activities.
The value chain also is useful in outsourcing decisions. Understanding the linkages between activities can
lead to more optimal make-or-buy decisions that can result in either a cost advantage or a differentiation
advantage.
The Value System

The firm's value chain links to the value chains of upstream suppliers and downstream buyers. The result is
a larger stream of activities known as the value system. The development of a competitive advantage
depends not only on the firm-specific value chain, but also on the value system of which the firm is a part.

4.4 PORTER'S GENERIC STRATEGIES
If the primary determinant of a firm's profitability is the attractiveness of the industry in which it operates, an
important secondary determinant is its position within that industry. Even though an industry may have
below-average profitability, a firm that is optimally positioned can generate superior returns.
A firm positions itself by leveraging its strengths. Michael Porter has argued that a firm's strengths ultimately
fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad
or narrow scope, three generic strategies result: cost leadership, differentiation, and focus. These strategies
are applied at the business unit level. They are called generic strategies because they are not firm or industry
dependent. The following table illustrates Porter's generic strategies:
Cost Leadership Strategy INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
This generic strategy calls for being the low cost producer in an industry for a given level of quality. The firm
sells its products either at average industry prices to earn a profit higher than that of rivals, or below the
average industry prices to gain market share. In the event of a price war, the firm can maintain some
profitability while the competition suffers losses. Even without a price war, as the industry matures and
prices decline, the firms that can produce more cheaply will remain profitable for a longer period of time. The
cost leadership strategy usually targets a broad market.
Some of the ways that firms acquire cost advantages are by improving process efficiencies, gaining unique
access to a large source of lower cost materials, making optimal outsourcing and vertical integration
decisions, or avoiding some costs altogether. If competing firms are unable to lower their costs by a similar
amount, the firm may be able to sustain a competitive advantage based on cost leadership.
Firms that succeed in cost leadership often have the following internal strengths:
· Access to the capital required making a significant investment in production assets; this investment
represents a barrier to entry that many firms may not overcome.
· Skill in designing products for efficient manufacturing, for example, having a small component
count to shorten the assembly process.
· High level of expertise in manufacturing process engineering.
· Efficient distribution channels.
Each generic strategy has its risks, including the low-cost strategy. For example, other firms may be
able to lower their costs as well. As technology improves, the competition may be able to leapfrog
the production capabilities, thus eliminating the competitive advantage. Additionally, several firms
following a focus strategy and targeting various narrow markets may be able to achieve an even
lower cost within their segments and as a group gain significant market share.
Differentiation Strategy
A differentiation strategy calls for the development of a product or service that offers unique attributes that
are valued by customers and that customers perceive to be better than or different from the products of the
competition. The value added by the uniqueness of the product may allow the firm to charge a premium price
for it. The firm hopes that the higher price will more than cover the extra costs incurred in offering the unique
product. Because of the product's unique attributes, if suppliers increase their prices the firm may be able to
pass along the costs to its customers who cannot find substitute products easily.
Firms that succeed in a differentiation strategy often have the following internal strengths:
· Access to leading scientific research.
· Highly skilled and creative product development team.
· Strong sales team with the ability to successfully communicate the perceived strengths of the
product.
· Corporate reputation for quality and innovation.
The risks associated with a differentiation strategy include imitation by competitors and changes in customer
tastes. Additionally, various firms pursuing focus strategies may be able to achieve even greater
differentiation in their market segments.
Focus Strategy
The focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
cost advantage or differentiation. The premise is that the needs of the group can be better serviced by
focusing entirely on it. A firm using a focus strategy often enjoys a high degree of customer loyalty, and this
entrenched loyalty discourages other firms from competing directly.
Because of their narrow market focus, firms pursuing a focus strategy have lower volumes and therefore less
bargaining power with their suppliers. However, firms pursuing a differentiation-focused strategy may be
able to pass higher costs on to customers since close substitute products do not exist.
Firms that succeed in a focus strategy are able to tailor a broad range of product development strengths to a
relatively narrow market segment that they know very well.
Some risks of focus strategies include imitation and changes in the target segments. Furthermore, it may be
fairly easy for a broad-market cost leader to adapt its product in order to compete directly. Finally, other
focusers may be able to carve out sub-segments that they can serve even better.
Generic Strategies and Industry Forces
These generic strategies each have attributes that can serve to defend against competitive forces. The
following table compares some characteristics of the generic strategies in the context of the Porter's five
forces.

4.5 PROGRAM ACTIVITIES OF PROMOTION/AWARENESS
BADULLA CAPITAL REACH LEASING LTD
Leasing Fixes Deposits
25% of 75% of
Promotion Promotion
Budget Budget
Paper Advertisement 70% of Total Budget
Leaflets Advertisement 25% of Total Budget
Banner campaigns 5% of Total Budget

Street Promotion 10% of Total Budget
CHAPTER 05
DATA PRSENDATION AND ANALYSIS
INTRODUCTION
This chapter is allocated for data analysis and presentation. Analysis data's are personnel interviews, survey
and secondary data's. Collected data's analysis to find the solution and identify the problems, weakness and
threat.
5.1 CUSTOMER QUESTIONNAIRES

Personnel Details
1. What is your age category?
I .0-19 II. 20-29 III. 30-39
IV. 40-49 V. Over 50
2. Gender
I. Male II. Female
3. Civil status
I. Single II. Married
4. Living area
I. The city II. Near the city III. Rural
5. What is your Occupation? ……………………………..............................................
Capital Reach Leasing Ltd Related Questions

6. How do you know about Capital Reach Leasing Ltd?
I. Advertisement II. Staffs III. Friends
IV. Others (…………………………..)
7. How long have you been using Capital Reach Leasing Ltd?
I. Opening branch II. More than one year III. Less than one year
8. What is the reason for choosing Capital Reach Leasing Ltd? INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
I. Good Company II. Good Service III. Good Interest rate
IV. Others (…………………………..)
9. What is your opinion about capital Reach Leasing Ltd?

I. Excellent II. Good III. Fair
10. How is relationship between you and Capital reach Leasing Ltd?
11. Comparing another Company features do you think that Capital Reach Leasing Ltd
Features have a good quality?
12. Do you agree with the safety provided by Capital Reach Leasing Ltd?
I. Yes II. No
ANALYSIS THE CUSTOMER QUESTIONNAIRES
One part of questionnaires collected from customers. Questionnaires using to 50 customers of Capital Reach
Leasing Ltd.
5.1.1 AGE CATEGORY OF CUSTOMERS

In this research age dividing in six groups
Age Number of Customers Percentage

0-19 02 4%
20-29 08 16%
30-39 23 46%
40-49 12 24%
Over 50 05 10%
Total 50 100%
Analyzing of age category of Capital Reach Leasing Ltd Customers is several segments to dividing in these
research.0-19 age group customers are 4% of whole sample and it is little percentage of all customers of
sample, second group of 20-29 is 16% of whole customers, third group of 30-39 is 46% of whole sample and
it is highest percentage of whole sample, fourth group of 40-49 is 24% of whole sample and it is second
highest of whole sample and finally Over 50 of age group is 10% of whole sample.Above table details to 30-
39 age group customers are more dealing with organization and second highest of age group is 40-49 and that
age group customers also dealing with organization.

5.1.2 CATEGORY OF GENDER
These consider to male and female how to dealing with organization.
Gende r Custome rs Percentage

Male 31 62%
Female 19 38%
Total 50 100%
According to above table 62% of male and 38% of female are dealing with organization. And mostly male
customers are mostly dealing to Capital Reach Leasing Ltd

5.1.3 CATEGORY OF OCCUPATION
Occupation Customers Percentage

Teachers 21 42%
Business 11 22%
Government Staffs 07 14%
Executives 05 10%
Retired 04 8%
No occupations 02 4%
Total 50 100%
Customers income and expenditure are depend on occupation, and there are six category to dividing of
occupation .it is very useful for identify customer hope.
According to above table 42% customers are Teachers and it is highest percentage of whole sample, 22% of
customers are Business and it is second highest of whole sample, 14% of customers are Government Staffs
Other group of executives are 10%, Retired customers are 8% and finally 4% of customers are no occupation.

Result of above calculation describe the awareness activity are increase.
All over awareness activity is increasing not enough because competitive companies more increase then
Badulla Capital Reach Leasing Ltd.
Above Chart clearly describe questionnaires result. All the questions are not give full result therefore not
high or not less of results

5.2 ANALYSIS THE PUBLICS QUESTIONNAIRES
1. Do you have in intention of having Deposits/Leasing?

I. Yes II. No
2. If you select deposits/leasing what are features consider?

I. Good Company II. Good Service III. Good Interest rate
IV. Others (…………………………..)
3. If you interested deposits/leasing what would be your selection under these category?
I. Banks II. Finance companies
4. If it answered 3questions”Banks” what is the reason for it?

I. Trust of banks II. Good service III. Good Interest rate
IV. Others (…………………………)
5. If it answered 4 questions” Finance companies” what is the reason for it?

I. Special in Finance II. Good service III. Good Interest rate
IV. Others (………………………….)
6. Do you know about Capital reach Leasing Ltd?

I. Yes II. No
7. What is your opinion about capital Reach Leasing Ltd?

8. How long have you been using Capital Reach Leasing Ltd?
I. Opening branch II. More than one year III. Less than one year
IV. Not using services
9. If it answered 7questions” Not using services” what is the reason for it?
I. Less quality of service II. Don't know about the Capital Reach Leasing Ltd
III. Others (…………………………………………………………………………)
10. Do you think there is enough publicity for capital Reach Leasing Ltd?
I. Excellent II. Good III. Fair INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
Above chart briefly explain public opinion .public opinion is just okay about Capital Reach Leasing
Company

5.3 ANALYSIS THE STAFFS QUESTIONNAIRES
1.Are you proud to work with capital Reach Leasing Ltd?

I. Yes II. No
2. Are you satisfying your work load?

I. Yes II. No
3. Do you all get enough relevant training?

I. Yes II. No
4. Weather your Company is excepting your opinion / ideas?

I. Yes II. No
5. Comparing other Company facilities do you think Capital Reach Leasing Ltd
Facilities have a good quality?
6. How is your office environment and customer relationship?


Above table clearly describe the office staffs are full satisfy of their work

CHAPTER 06
CONCLUSIONS AND RECOMMENDATION
6.1 INTRODUCTION
In this chapter is allocated to present conclusion and recommendation. Through the recommendation the
research discussed several suggestions for the identified problems and weakness of the Badulla Capital
Reach Leasing Ltd.
6.2 CONCLUSION
Through the light of this study it is pin pointed that Badulla capital Reach Leasing ltd are is mostly patronized
by customers who belong to age category 30-39.
The company activities are considering mostly teachers so the teacher's percentage is high. But other
category customers are less. Because the activities they consider is not relevant to other field or is not
reaching to the relevant field. So that might be reasons to loss of other category customers.
When promoting/awareness the company mostly consider paper advertisement so reaching non paper render
is less. Only the paper render get to know about company details.
Considering competitive companies the method used for attracting public is not satisfied. So the potential
customers keep their way to the most attractive competitors companies.
Information technology has been developing day to day in financial. According to that development the
company is not using the facilities provided by informational technology, to save time, to make work easier
to provide facilities that are easy to customers. Examples E-Commerce, E-Money Transfer
The company office environment looks like it is not satisfying the customers. So they don't believe in their
company. So the customer percentage is decreased because of this.
6.3 RECOMMENDATION
The Importance of Organizational Design and Change
Organizational design helps a company deal with contingencies, achieve competitive advantage, manage
diversity, and increase its efficiency and ability to innovate goods and services.
Dealing with Contingencies

A contingency is an event that might occur and must be considered in planning. An organization can
design its structure to increase environmental control. Structure and culture are tools to respond to the
complex global environment and changing technology. Structure can make employees aware of the
environment.
Gaining Competitive Advantage

Good organizational design offers a competitive advantage. Competitive advantage emerges from core
competencies, value creating skills, and abilities. Managers formulate strategies, specific decisions, and
actions that use core competencies to create a competitive advantage.
Managing Diversity
The workforce has become more diverse with people of many national origins working for the same
company. The workforce is aging. An organization must design its structure to maximize its diverse
talents and to develop a culture that fosters cooperation.
Promoting Efficiency, Speed, and Innovation

Organizational design can increase efficiency. Companies must compete with low-cost producers
globally and market new products and processes. Organizational design makes a firm more innovative.
An entrepreneurial culture fosters innovation.
Handling some Strategies
v
Market Strategies
This component includes the company's relationship with existing and potential clients/customers, its
knowledge of changing needs and opportunities in the market, the way it identifies and reaches its
clients/customers, the quality and speed of service it provides, marketing, advertising, and the selling and
management skills its possesses.
Examine management's assumptions, perceptions, predispositions about the market, and determine to what
extent they are valid.
Use one or more of the following Marketing strategies: Use, improve -- marketing materials; advertising;
trade shows; direct mail; market research; public relations; etc.
Use one or more of the following Sales strategies: For Sales staff -- increase their selling time, increase their
numbers, increase their knowledge, skills; engage sales reps, distributors; enhance customers' knowledge of
what's offered; etc.
Expand our business within the segments we serve; or expand into other segments; or expand our
geographical area; or change the % of sales we make within our existing client base, segments, or
geographical areas.
Evaluate new opportunities in the market--in terms of acquisitions, new products/services, collaborations
with others, etc.
"Attract" the market to us - by immediately implementing cleanliness & organizing work to the next highest
level; and by managing our finances better. (This can invoke a response and make the market come to us.)
v
Products & Services Strategies
This component refers to the capacity of the company to deliver products and services. It includes the range
and quality of products/services it markets, the technical knowledge and skill of sales and service staff, and
the level of technology incorporated in its products/services and utilized to carry on business.
Improve the technology of our products/services by adding one new dimension to it
Attune our products/services to meet a psychological need of the client/customer, so that it provides greater
enjoyment, security or educational value.
Examine every technology our company employs and identify ways to reduce cost.
Match our products/services as closely as possible with the needs of the market.
Make improvements in our organization (structure, activities, systems, job positions, procedures, rules,
regulations) that will improve the development and operation of our technology (including
product/services).
v
Organization Strategies
This is the component that holds everything together and forms it into a living whole. Organization consists
of the structures, systems, policies, procedures and activities of a business, the manner in which it exercises
authority, takes decisions, communicates, coordinates and integrates its activities.
Establish clear job descriptions for every position, and create a system whereby the responsibilities and
authority of each position are clear to other people in the company.
Analyze the jobs of executives, managers, and supervisors to identify tasks that can be delegated to lower
levels and the conditions necessary to make that delegation effective.
Conduct an analysis of major activities in the company (such as selling, order taking, etc.) to identify ways to
increase speed, reduce cost, eliminate unnecessary steps, and improve quality. Also, insure there are systems
for every activity.
Assess the effectiveness of important systems in the company (e.g. accounting, budgeting, personnel,
information, planning) in terms of their speed, their personnel requirements, quality of work, cost of INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.
operations, and whether fully being utilized.
v
People Strategies
This component covers the energies, abilities, skills, and attitudes of employees that can be harnessed for
growth. People and companies grow together. Those companies that provide maximum opportunities for
their people to grow, find maximum opportunities for their own growth.
Recruit people with a high level of energy and good health.
Review wage and salary scale, and ensure that the compensation for every position is not only fair, but
perceived as fair. Whenever necessary, educate people to understand the true value of the company's benefits
package.
v
Finance Strategies
This component defines the way in which the company manages, monitors and utilizes capital resources for
its growth. It includes the quality of systems and skills for accounting, budgeting and financial management,
cash and credit management, control over purchasing and inventory, access to capital.
Determine of our company is exploring and taking advantage of every conceivable source of finance to make
our business grow.
Determine what can be done to improve accuracy and timeliness of accounting so that information on
performance is available as soon as possible after the day, week, the month, or the job is over.
Determine how our company can utilize financial information as a positive instrument for tracking and
monitoring performance on key activities.
Determine what type of indicators we can develop as positive motivating tools to help managers and
employees evaluate their own performance.
Determine what are the key areas in which the company can save money by improving performance.
Determine what can be done to raise performance in those areas.

REFERENCES
1. Lecturer notes
Marketing Management
Mr. Jayapalan
2. Lecturer notes
Advatesment and Sales promotion
Mr.D.M.N.G.Dissanayake
3. www.wikipedia.com
www.scribd.com
www.articlesbase.com

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ACKNOWLEDGEMENT

First of all we are thankful of our project guide Mrs.D.M.N.G.Dissanayaka

We must make special mention of Mrs.S.Jayapalan, our project in charge

We are also very thankful to respective Director B.Gajasingha sir who

CHAPTER 02 LITERATURE REVIEW

CHAPTER 03 ENVIROMENTAL ANALYSIS

4.3 The Value Chain Analysis

CHAPTER 05 DATA PRESENTATION & ANALYSIS

CHAPTER 06 CONCLUSIONS & RECOMMENDATION

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

1.3 OBJECTIVE OF THE STUDY

3. Programmers activities of Promotion/Awareness

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

1.4.0 TYPE OF STUDY

This is descriptive and quantitative study which analysis organization build/creative

1.4.1 DATA COLLECTION

Here are some ways or methods of collecting primary data.

Secondary data is collected from external sources such as:

DATA ANALYSIS AND PRESENTATION

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

MARKET COMPANY AWARENESS

BUYERS PRMOTIONAL TOOLS

BADULLA CAPITAL REACH LEASING LTD

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

OBJECTIVES OF AN ADVERTISING AWARENESS STUDY

Phase 1: Increase Awareness

Phase 2: Facilitate Recognition

Phase 3: Compel Action

3 Goals of the Brand Development & Utilization Process

customer service, personnel, delivery, marketing, communications, and public relations.

Company is a team of talented, hand-picked, well-respected, highly-recognized, immensely-successful,

Mr. Mayura Fernando – (Chairman)

MISSION STATEMENT OF CAPITAL REACH LEASING LTD.

“To be the preferred non banking financial institution in Sri Lanka”

MISSION INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

LENDING PRODUCTS. h Harvest Lease - Aswanne

Hire purchase - Janahitha

Entrepreneur's Lease - Supiri

Sale and Lease Back - Atamita

Equal Installment Lease – Piripun

Operating Lease- Victory

Hire purchase - Janahitha

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

Types of financial markets

Relationship between lenders and borrowers

Lenders Financial Intermediaries Financial Markets Borrowers

Performance Indicators of key variables in Sri Lanka

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

# Creating a trust-worthy and enabling environment favorable to savers and investors

Objective of Financial System Stability

Present Position of Sri Lanka

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

# Focus on credit quality and financial market conditions for maintaining

Exchange Rate Management:

# Conversion of non-tradable government securities into tradable SLR securities

INCREASE AWARENESS ABOUT CAPITAL REACH LEASING LTD.

Demography and CRM (Customer relationship Management)

# Customer-centricity also implies increasing investment in technology. Throughout much of the

# Latest technology through to archive following goal easily

Communicate product attributes and key selling themes directly to customers to

vertically, technology has an important function to perform in developing a payments system

* Organizational competencies are the foundation of competitive advantage.