Differentiate between “push technology” and “pull technology.”  Name a company (other than those described in the textbook) that uses “push technology” and describe how the company uses it.  Do the same for a company that uses “pull technology.”

PROFESSOR’S GUIDANCE FOR THIS WEEK’S LE:

Twitter vs RSS

Twitter can be stressful in a way that RSS is not. Both are digital, but RSS is more active and Twitter is more passive.

RSS gives you content that you have deliberately subscribed to. Your Twitter stream contains updates from people you have chosen to follow, but also unwanted content. This unwanted content comes in several forms: unwanted content from people you chose to follow, retweets, and worst of all tweets that people you follow have “liked.” You can turn off retweets from people you follow, but you can’t avoid likes. Twitter also has ads, but I find ads less annoying than the other unwanted content.

When an item shows up in your RSS feed you make a choice whether to open it. But Twitter content arrives already opened, including photos. I’ll subscribe to someone’s RSS feed even if I’m interested in only one out of twenty of their posts because it is so easy to simply not read the posts you’re not interested in. But if you’re only interested in one out of twenty things people say on Twitter, then your stream is 95% unwanted content.

Peer posts:

jana

Push technology is a type of communication that takes place over the Internet when data is pushed from a server to a customer without the customer requesting it. Most push technologies have to be approved or subscribed by a customer. When customers approve a subscription, the product is delivered without any further approvals. If the server (sender) initiates the transfer and sends information (it can be, for example, a notification) to the client without receiving a request, the process is implementing push technology. For example, web sides use push technology to update the customer in real-time, such as News. In addition, web applications and electronic devices apps (computers, cell phones, tablets) use push technology to inform the customer about new available posts or send notifications that new content is available (N/A, 2019)1.

Pull technology delivers the content to many different types of devices and applications. The pull technology is defined by transferring information that is initiated by request sent from a customer to a server. If a customer goes to the Internet and starts to search for some website and the server opens the website for them – that is considered for pull technology because the customer initialed the content. For example, the content computer, cellphone, and tablets applications must be checked by the customer while using it; or the web application must be manually refreshed by the customer (N/A, 2019)1.

One of the companies that use push technology is Netflix. If the customers subscribe to this, then they will receive notifications on their cellphone or tablet that there are new series coming soon.

The company that uses pull technology is, for example, Kindle. The customer has to type the name of the book’s author, pay for it is applicable, and then the server will send the content to their E-reader.

References:

(N/A), (2019)1, What Is Push Technology? – Glossary Of Tech Terms, https://websitebuilders.com/how-to/glossary/push/

(N/A), (2019)2, What Is Pull Technology? The Explanation Is Surprisingly Easy, https://websitebuilders.com/how-to/glossary/pull/

tinuke

Differentiate between “push technology” and “pull technology.” Name a company (other than those described in the textbook) that uses “push technology” and describe how the company uses it. Do the same for a company that uses “pull technology.”

What is Push technology?

Push technology is used to push out or expose a product to a target audience. Push technology is a trending software and service distribution; it can also be called webcasting. The user usually subscribes to a certain service supported by the web browser. (Bidgoli,2017). The user does not have to waste time or wait for the information to be delivered.

What is Pull technology?

Pull technology means the individual articulates the need before getting information, such as when a website is typed into Google or Firefox to enable the individual to access a certain website. It may not be the overall best for businesses; people hardly request marketing information. (Bidgoli,2017).

The difference between “push technology” and “pull technology

Pull technology does not deliver content automatically. Pull technology is not usually used for business to customer (B2C). It may not be easy to generate funds for companies looking for customer subscription. On the other hand, in push technology an individuals’ favorite web content can be updated and sent to the desktop or android phone. Push technology is effective for business to consumer (B2C) and business to business marketing (B2B). A food manufacturer can send the latest information on new organic products to all their dealers and customers. It is used in downloading antivirus updates. It delivers content to users automatically. It could be at specific dates or times. The company offering the service is the one doing the pushing most times. Push technology is used to improve customer relationships and customer loyalty as well as cash flow. (Abbasi et al., 2020). A difference in Push technology is that it cuts overload by automatically delivering very relevant information to a users’ desktops. (Hibbard, 1997).

Example of a company that uses push technology

Coca-Cola has a robust network, by utilizing push technology, it is used by the sales force and driving trade promotion money to push and capture the minds of intermediaries to activate them to become ambassadors who promote and sell the product to the last line of consumers.

Example of a company that uses push technology

An example is podcast hosting company sites such as Blubrry, Libsyn, and Buzzsprout; when a newer podcast episode is published to a really simple syndication feed, it stays on the server until a feed reader demands it. Another example is instant messaging and text messages.

References

Abbasi, Waqee A.; Ali, Tahir, (2020). Role of Augmented and Virtual Reality Marketing in Organizational Development. Journal of Marketing & Management, 11 (1), 1-19. https://gsmi-ijgb.com/wp-content/uploads/JMM-V11-N…

Bidgoli, H., (2017) MIS, 8th ed. Cengage Learning

Hibbard, J. (1997). Pull technology fights back. Computerworld, 31(21), 55-56. https://www.proquest.com/trade-journals/pull-technology-fights-back/docview/216054932/se-2?accountid=34773.

Discussion1: This article speaks about the importance of entry time in the frame of low interest periods to verify if we need to select a private placement or a public sale. To understand this, we need to firstly understand the terms private placement and public sale. In instances where private alternatives sell a trade security that are sold publicly to pool funds, it is known as private placement. In this spectrum, the transactions are done to equity parameters in a collective manner to a bunch of investors present to invest money. These are very similar to mutual bonds and low interest bank loans that are subjected to market fluctuations. In general, it is secured by collaterals that have low risk or no risk while the ones that are unsecured with no collaterals have higher risk and interest rates.  In general, public sale happens when the stock holders sell their stocks to public through brokers or marketing agencies under the securities act and in compliance with the promulgated rule. Initial public offering is also very much related to it. It is when a firm is planning to sell its very first batch of shares to public on and public trading platform. This allows the following offerings to align with flow of cash after the initial public offering pooling in funds to run the company. Shares are made available for the public in the open market through brokers and marketing agencies after securing the initial public offerings so that base is stronger and the firms are in safe hands. Private placement offers are available for buys in the forms of pension funds, mutual funds and investment banks. As the shares held by the pre-existing shareholders are diluted after the shares are released to public, it greatly effects in the long run and effectively boosts the funds.

References:

https://www.legalserviceindia.com/legal/article-46…

Discussion2:A private placement refers to a stock sale to a small group of persons, such as an investment bank, a pension fund, or a mutual fund, whereas a public sale refers to a stock sale to the general public. Instead of selling stock or bonds on the open market, a private placement sells them to pre-selected investors and institutions. A firm wanting to raise funds for expansion is an alternative to an initial public offering (IPO).

A private placement is the sale of contracts to a minute group of people or institutions. When opposed to open market sales of securities, private orders are relatively unregulated. Private sales are becoming more common for entrepreneurs as they allow them to raise funds while delaying or avoiding an IPO.

Because public offerings are subject to more rules from authorities, private placements are speedier than public offerings. Furthermore, private orders are easier and faster to complete than general sales. Private placements have become a popular approach for companies to raise funds, particularly in the internet and financial technology sectors. They allow these businesses to flourish and grow without facing the full brunt of public scrutiny that comes with an IPO.

But the primary reason for private equity’s rapid expansion and high rates of return has gotten little attention, partly because it’s so obvious: the firms’ regular practice of buying businesses and then selling them after guiding them through a rapid performance improvement transition. The success of private equity is based on this strategy, which combines business and investment portfolio management.

References :

https://www.investopedia.com/terms/p/privateplacement.asp

https://hbr.org/2007/09/the-strategic-secret-of-pr…

1: A dividend is a payment made by a firm to its shareholders, either in cash or in kind. Dividends can be paid in a variety of ways, including cash, stocks, or other assets. The board of directors decides on a company’s dividend, which must be approved by the shareholders. A firm is not required to pay dividends, though. A dividend is a portion of a company’s profit that it distributes to its shareholders. Some companies, such as Sun Microsystems, Cisco, and Oracle, do not pay dividends and instead reinvest their entire profit back into the business. The underlying worth of a company’s share price is usually unaffected by dividend payments.

If profits are expected to be very low or negative, a privately held corporation should not offer cash dividends. Dividends are often thought of as a distribution of a portion of a firm’s profits to those who own stock in the company. As a result, no profits usually imply no dividends. Even when a corporation makes a profit, it is sometimes in the best interests of the company and its shareholders to keep the gains rather than distribute them as dividends. If a company is expanding and needs money to spend, for example, keeping earnings may be more cost effective than obtaining loans or more investors.

Public corporations, regardless of how profitable they are or how much cash they have, are not required by law to pay dividends to common shareholders. By 2013, Apple, for example, had amassed more than $100 billion in cash and was still defying shareholder demands to declare a dividend. For private companies regulations and law are different and stringent then public companies to pay dividend. Hence it’s always easy to get dividend from private firm.   

Reference :-

Investing Basics: How Do Dividends Work? – Miranda Marquit, Benjamin Curry – Updated: Mar 30, 2021, 10:54am – Forbes.

2:A dividend is the distribution of the earnings of a company to its shareholders. Dividends are paid to shareholders in form of an additional shares of stock and dividend checks. Companies are able to pay dividends when they have a surplus as dividends(Tahir, Masri,& Rahman, 2020). Therefore, most companies have dividend policies, and those that pay dividends are really attractive to investors since they seem to have more stables than those that do not have.

It is simpler for private companies to pay dividends to shareholders since the directors of private companies are entrusted with the responsibilities of deciding who to give or not to give dividends to the best of their knowledge(Juhandi,  Fahlevi,  Abdi, & Noviantoro, 2019). However, on the other hand, in public companies, every share in a share class has the same rights to receive dividends since each share in each and every share class has equal rights to dividends unless otherwise stated in the company constitution. Private company directors are able to decide on how to pay dividends more easily due to the small size of the company, unlike the public company which is very large in size and poses great challenges to the directors when deciding on the dividend policy to use.

Private companies also have fewer shareholders and restrictions to shareholding than public companies. Public companies have very many shareholders who at times may be widely spread in the region making it more difficult to pay dividends to the shareholders due to many restrictions available. Also, for private companies, stock prices do not change since only a few shareholders are aware of the case of dividends making it very easy for directors to pay dividends(Munawar, 2018). Unlike public companies whose stock prices changes since intentions to pay dividends is announced to the public. Therefore, many shareholders may use the information to act to their advantage which may lead to changes in the stock prices of the company. This makes it quite difficult for the directors to carry out the dividend payment process effectively.

References

Juhandi, N., Fahlevi, M., Abdi, M. N., &Noviantoro, R. (2019, October). Liquidity, Firm Size and Dividend Policy to the Value of the Firm (Study in Manufacturing Sector Companies Listed on Indonesia Stock Exchange). In 2019 International Conference on Organizational Innovation (ICOI 19).

Munawar, A. (2018). The Effect of Leverage, Dividend Policy, Effectiveness, Efficiency, and Firm Size on Firm Value in Plantation Companies Listed on IDX. International Journal of Science and Research, 8(10), 244-252.

Tahir, H., Masri, R., & Rahman, M. M. (2020). Impact of board attributes on the firm dividend payout policy: evidence from Malaysia. Corporate Governance: The International Journal of Business in Society.

Write a reply of 150 words for each Discussion

Discussion1: The foreign exchange rate is commonly referred to as the value of a nation’s currency exchange to other currencies. In simple words, the currency value you get when you exchange for another currency such as 1 dollar is worth 75 rupees in India. Foreign exchange risks are the risks involved in financial transactions from one currency to another nation’s currency. There are two types of transactions involved when dealt with exchanging a nation’s currency, appreciation is the increase in value and depreciation is the decrease in the value. This exchange rate widely depends on many factors such as import/export, international trades, investors. If a U.S. firm has a subsidiary in other countries for example Belgium, there will be some foreign exchange risks that the firm will have to face such as transaction risk, translation risk, and economic risk.

Transaction Risk – This risk is when a company buys or sells a product or service to other countries which involve either denomination or appreciation of the currency value that of the nation’s currency. For example, if the U.S. firm wants to sell a product in Belgium the firm has to give more dollars as a dollar is 0.86 euro. There is will some depreciation for the U.S. firm and appreciation for the Belgium country.

Translation Risk – The risk is when the company issues quarterly or annual financial statements there will be currency conversion through which there will be either appreciation or depreciation. In this case, the U.S. firm will depreciate some money due to currency conversion from euro to dollar.

Economic Risk – This risk is due to currency fluctuations which may happen due to variations in import/export, economic disasters such as depressions, and pandemics. For example, in 1929 there was a stock market crash that affected many countries and a big loss in GDP occurred all over the world. These crashes can happen in only one country and could affect the companies as well.

Reference:

Bates, R.P.D.S.K. T. (2014). Fundamentals of Corporate Finance (3rd Edition) | Wiley Global Education US

https://online.vitalsource.com/books/9781118901656

Foreign Exchange Risk

https://www.investopedia.com/terms/f/foreignexchangerisk.asp

Great Depression History

Discussion2:Consider, for the sake of discussion, a U.S. firm that owns a subsidiary in Belgium. This firm will face a variety of challenges due to its participation in a foreign market. One issue in particular arises from currency differences. Parrino and company (2014) explain that firms in this situation “are likely to deal in two or more currencies” and this creates a need for financial managers to “know how unexpected fluctuations in currency exchange rates can affect the firm’s cash flows and, hence, the value of the firm” (p. 676). Because this need cannot always be met, it leaves the U.S. firm with a certain level of risk. 

This risk, referred to as foreign exchange rate risk, is defined as “the uncertainty associated with future currency exchange rate movements” (Parrino, et al., 2014, p. 676). At the end of the day, the U.S. firm in this situation needs information that is not necessarily available; therefore, a certain degree of uncertainty is created. For example, what if the U.S. firm desires to start a capital project at its Belgium branch? Just as in any capital budgeting project, the firm will have to consider the projected future cash flows. These cash flows, however, will “most likely be in a foreign currency that must eventually be converted to the parent’s home currency” (Parrino, et al., 2014, p. 688). In other words, projecting cash flows will not be enough to evaluate the project. More than one currency means that the forecasting of currency exchange rates will also be necessary. Unfortunately, however, the money center banks and currency specialists on Wall Street can only forecast these rates for three or four years into the future (Parrino, et al., 2014). Most capital budgeting projects have lives of 20 years or more, a time frame that is exceptionally difficult to forecast exchange rates for. This situation is just one example of how a U.S. firm with a subsidiary in Belgium could encounter foreign exchange rate risk. 

Parrino, R., Kidwell, D. S., & Bates, T. W. (2014). Fundamentals of Corporate Finance (3rd ed.). Hoboken, NJ: Wiley Global Education US.