MZUMBE UNIVERSITY

NAME OF COURSE : MBA-CM

NAME OF SUBJECT : MANAGERIAL ECONOMICS

STUDENT NAME : JIANPO ZHANG

REGISTRATION NO : 221050164/T.18

LECTURER : Prof. Ngowi, H.P (PhD Economics)

NATURE OF WORK : TERM PAPER

SUBMISSION DATE :  15/2/2019

QUESTION

Demand for goods and service can be estimated using various techniques. Find a company of your choice and describe the way it estimates its demand.

TABLE OF CONTENTS

CHAPTER ONE 1

1.1 INTRODUCTION 1

1.2 Background of CRDB bank 1

1.3 STATEMENT OF THE PROBLEM 1

1.4 Research objectives 2

1.4.1 General objective 2

1.4.2 Specific Objectives 2

1.5 Research questions 2

1.6 Significance of a Study 2

CHAPTER TWO 3

LITERATURE REVIEW 3

2.1 INTRODUCTION 3

2.2 Meaning of demand 3

2.2.1 Determinants of Demand 3

2.2.2 Law of Demand 3

CHAPTER THREE 5

RESEARCH METHODOLOGY 5

3.1 Introduction 5

3.2 Research design 5

3.3 Population and sample size 5

3.3.1 Population 5

3.3.2 Sample size 5

3.4 Sampling Techniques 6

3.4.1 Simple Random Sampling 6

3.5 Methods of data collection 6

3.6 Ethical considerations 6

CHAPTER FOUR 7

RESEARCH FINDING 7

4.1 Businesses Depend on Demand 7

CHAPTER FIVE 8

RECOMMENDATION AND CONCLUSION 8

REFERENCES 9

CHAPTER ONE

1.1 INTRODUCTION

This chapter presents the background information which provides the brief history of CRDB bank and demand for goods and service can be estimated using various techniques.  . Moreover, other issues discussed as well which include statement of the problem and objective of the study.

1.2 Background of CRDB bank

CRDB Bank Plc is a commercial bank in Tanzania also with current presence in Burundi, registered in Dar es Salaam stock of exchange (DSE) in June 2009 thus is wholly-owned private commercial bank. The Bank was established in 1996 and has grown and prospered over the years to become the largest bank in the country. The bank has invested much in banking technology in  its products and service hence enjoy the competitive advantage of being  be most innovative, and trusted bank in the country.

CRDB Bank offers a various range of banking products categorized into Corporate Banking, Retail Banking, Business Banking, Treasury, Premier, and wholesale microfinance services through a network of 123 branches all over the country, over 400 ATMs,  ATMs, over13  Mobile branches, 984 Point of Sales (POS) terminals, and 450 of Microfinance partners institutions. The Bank also offers Agent Banking services over 1500 Fahari Huduma agents across the country, internet and Mobile banking services branded as Simbanking.

1.3 STATEMENT OF THE PROBLEM

Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. Demand is based on needs and wants a consumer may be able to differentiate between a need and a want, but from an economists perspective they are the same thing. Demand is also based on ability to pay. If you cannot pay for it, you have no effective demand.

In this study focus on Demand for goods and service how can be estimated using various techniques in CRDB bank.

1.4 Research objectives

The objective of this study was divided into two main categories that is general objective and the specific objectives as given hereunder.

1.4.1 General objective

The general objective of this study is to examine demand for goods and service which can be estimated using various techniques in CRDB bank.

1.4.2 Specific Objectives

To analyse demand for goods and service in CRDB bank.

To describe how Demand for goods and service can be estimated using various techniques.

1.5 Research questions

What demand for goods and service in CRDB bank?

How Demand for goods and service can be estimated using various techniques?

1.6 Significance of a Study

Findings from the study help the bank industry to know how demand for goods and service which can be estimated using various techniques in CRDB bank.

This study offers empirical evidence on the description on the demand of goods and service and its technique.

Furthermore, this study might serve as a reference for other researchers studying related subject(s) in order to enhance their work.

CHAPTER TWO

LITERATURE REVIEW

2.1 INTRODUCTION

This chapter review literature that focuses on how Demand for goods and service can be estimated using various techniques in CRDB bank Tanzania.

2.2 Meaning of demand

A relation showing the quantities of a good that consumer is willing and able to buy at various prices per period, other things constant.

Demand in economicsis the consumer's desire and ability to purchase a good or service. It's the underlying force that driveseconomic growth and expansion. Without demand, no business would ever bother producing anything. (Cicchetti, C. J., & Freeman III, A. M.,1971).

2.2.1 Determinants of Demand

There are fivedeterminants of demand, the most important isthe priceof the good or service itself. Thesecondis theprice ofrelated products, whether they are substitutes or complementary.

Circumstances drive the next three determinants. These are consumers' incomes, their tastes, and their expectations. (Saviotti, P. P. ,2002).

2.2.2 Law of Demand

The law of demandgoverns the relationship between the quantity demanded and the price. This economic principle describes something you already intuitively know. Ifthe price increases, people buy less. The reverse is also true. If the price drops, people buy more.

But, price is not the only determining factor. The law of demand is only true if all other determinants don't change. (Saviotti, P. P. ,2002).

Demand Function demand function that represents the behavior of buyers, can be constructed for an individual or a group of buyers in a market. The market demand function is the horizontal summation of the individuals' demand functions. In models of firm behavior, the demand for a firm's product can be constructed. he nature of the "demand function" depends on the nature of the good considered and the relationship being modeled. In most cases the demand relationship is based on an inverse or negative relationship between the price and quantity of a good purchased. Nakane, M. I., Alencar, L. S., & Kanczuk, F. (2006). Demand for bank services and market power in Brazilian banking.

Effective Demand the term effective demand is used to differentiate between individuals and groups who have the will and the means to buy a product and those who have the will but not the means to buy the product. For example, the willingness of low income individuals to purchase an expensive car may be very strong, but they do not have the means to purchase the car. Effective demand only includes those individuals who have the will and the means to purchase a product. The term effective demand is often used in reference to the demand for food from people in developing countries. Although the demand for food may be high, they do not possess the means to purchase the food. So, malnutrition and starvation often occur, not because of a shortage of food in the world, but a shortage of the means to purchase the food. (Saviotti, P. P. ,2002).

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter three presents the materials and methods which were used in the study. It comprises of the following sections such as research design, study area, population and sample size, sampling techniques, data collection methods, data analysis techniques and ethical considerations.

3.2 Research design

It was usually provided rich details about the variables under investigation of the study. A cross sectional study generally aims at providing insight into a particular situation and often stresses the experiences and interpretations of those involved. It uses direct observation to give a complete snapshot of a case that is being studied. It is useful when not much is known about the phenomenon (Bryman, 2004). A prospective of the decision was on how you use your study on where, what, when and how much, cross sectional study design used in the study

3.3 Population and sample size

3.3.1 Population

The population comprise of CRDB bank employee in order to get required data on Demand for goods and service can be estimated using various techniques case study CRDB bank.

3.3.2 Sample size

Sample size is a representative subset of all items into a defined category (population) (Bowers, 1991). Saunders et al (2003) define sample as a subgroup or part of large population.

Sample size which used in the study was 50 employee from the CRDB bank where are selected and been able to give required data for the use of the study.

3.4 Sampling Techniques

3.4.1 Simple Random Sampling

Kothari, (2014) there are much more current reference states that simple random sampling provides equal chance to every member in the population to be involved. The group discussions were involved and a participant in each group was selected randomly and the same guide was used for the groups.

3.5 Methods of data collection

Data collection refers to the process of gathering specific information aimed at providing or refuting some facts (Kombo and Tromp, 2006). This study utilizes both primary and secondary data collection methods to get information from respondents and other sources.

3.6 Ethical considerations

In order to ensure ethical conduct in the study all respondents was informed about the study in order to have willingness to corporate. The information that they provided by respondents was treated as confidential and for academic purposes only. This enabled respondents to corporate with minimum risk. Other ethical considerations include briefing the respondents as to the purpose of the study, their relevance in the study process and expectations from them.

CHAPTER FOUR

RESEARCH FINDING

This chapter presents the finding on CRDB bank Tanzania on Demand for goods and service can be estimated using various techniques.

4.1 Businesses Depend on Demand

CRDB bank understands andguide consumer demand. They seek to understand it with market research. They attempt to guide it with marketing, including public relations and advertising.Has competitive advantage todraw more demand. One advantage is to bethe low-cost provider. Costco provides bulk purchases with low prices per unit.Another is to be the most innovative.

CRDB Bank Plc shifted customers from the time in which demand exceeds capacity, example an introduction of alternative banking channels like an Atm`s, simbanking, fahari huduma wakala and internet banking these services tend to shift customers from long queing in the branch halls.

Advertising and sales promotions, CRDB Bank Plc us effective advertising and sales promotions as the one of strategy to balance demand and organization capacity ,this help  to increase the market demand by bringing awareness to community on different products and services offered and various bonus provided by the bank.

Customer communication, CRDB Bank Plc using effective communication to their customers to balance demand and organization capacity through their call center unit where customers will make phone calls 24 hours in 7 days, social medias, dial phone number placed in ATM`s, and on theirs adverts this help them to know the highest demand of the products and taking the precaution measures to improve such service to ensure that customers are utilize the service without any delay.

CRDB Bank Plc using pricing as the one of strategy by fluctuates the prices to cope with their capacities, as they increase the prices of their products and services at the time when demand exceed capacity and low down the prices when capacity exceeded the demand.

CHAPTER FIVE

RECOMMENDATION AND CONCLUSION

To analyze capabilities to suit current and future demand of CRDB bank is essential task of the operations managements, as cost effectively concept will be delivery after balancing an organization capacities and demand failure of it will cause to have an excessive costs. In order for CRDB Bank Plc to reach their corporate objective of being the leading bank with competitive return to shareholders they have to continue to apply and improve these strategies of balancing demand and organization capacity. Also they have to expand more to the interior areas where the banking services and products are highly needed with scarce availability together with improving their alternative banking channels which are more reliable, easily accessible, and its availability is 27/7.

REFERENCES

Cicchetti, C. J., & Freeman III, A. M. (1971). Option demand and consumer surplus: further comment. The quarterly journal of Economics, 528-539.

Lovelock, C. H. (1983). Classifying services to gain strategic marketing insights. The Journal of Marketing, 9-20.

Nakane, M. I., Alencar, L. S., & Kanczuk, F. (2006). Demand for bank services and market power in Brazilian banking.

Saviotti, P. P. (2002). Variety, growth and demand. New Dynamics of Innovation and Competition, 41.

Saviotti, P. P. (2002). Variety, growth and demand. New Dynamics of Innovation and Competition, 41.

Weisbrod, S. R., Lee, H., & Rojas-Suarez, L. (1992). Bank risk and the declining franchise value of the banking systems in the United States and Japan.