1. Introduction

This report is being prepared in order to complete the E- commerce module individual assignment, which is conducted under the degree program. It is being involved in analyzing particular data for 3 cooperates. This is also a study which is being done in order to gain the knowledge of the module and the strategies of the relevant organization.

This report consists of a research and a study of three local corporations with respect to their weekly stock price values and the strategic achievement of the organization.

2. Selection Criteria for the Companies of Interest

1. AIA Insurance Lanka PLC

AIA Insurance is the largest multinational company in Sri Lanka. The aim of the compact is to provide financial protection with security for a comfortable future, also to understand people by engaging with their lives. It provides a large range of insurance and wealth products that fits the lives of the customers accordingly.

Purpose “To play a leadership role in driving economic and social development in Sri Lanka.” Vision “To become the pre-eminent life insurance provider in Sri Lanka.”

It was first established in Shanghai about 90 years back. It is also the market leader in the Asia Pacific region. The top management of AIA Sri Lanka is from Hong Kong. As it is mentioned above AIA has provided a range of products and services including savings, life, accident, health etc. Therefore the management of AIA has made strategies and focus on creating value to the policy holders of life insurance.

The reasons as to why AIA was being selected to invest money in its shares are as below.

Future Outlook

The economy of Sri Lanka has reflected a growth from 7.3% to 7.8% in 2014. The economic improvement is underpinned by loose monetary policy also slow recovery of the global economy, with the current focus of the Central Bank to increase private sector credit to target levels to stimulate economic growth. Inflation is expected to continue to remain at single digit levels in 2016.

Industry performance

Life insurance industry has recorded a premium income of LKR 41.3 billion as at end 2013 and an increase of 10.2% from LKR 37.5 billion in 2012. Despite the lower penetration, premium income has increased by 72.07% in a five year horizon between 2009 and 2013. New companies have recorded a commendable GWP growth in 2013. Top five companies continue to enjoy more than 80% share of the total life insurance market in 2013.

Group results

Group crossed LKR 14 billion in total revenue with overall profit after tax of LKR 352 million in 2014. Organization finished the second year under the leader of the AIA brand in 2014. Income increment of 9.2% to LKR 14.2 billion in 2014 (2013; LKR 13.0 billion) was driven by the earned premium execution for the year under survey. Working use was recorded at LKR 4.1 billion for 2014 with a development of 7.6% more than 2013, for the most part owing to the branch extension activities carryout amid the year.

2. Commercial Bank of Ceylon PLC

Having set a benchmark in private division keeping money in Sri Lankan guidelines, made a personality and fashioned a top notch pattern. Perceived as a pioneer have kept up social personality while giving a scope of items and administrations. Controlled by cutting edge innovation and driven by a group of profoundly energetic, dynamic people have turned into the pioneers in private saving money in Sri Lanka.

Vision-“To be the most technologically advanced, innovative and customer friendly financial services organisation in Sri Lanka, poised for further expansion in South Asia”

Mission-“Providing reliable, innovative, customer friendly financial services, utilising cutting edge technology and focusing continuously on productivity improvement whilst developing our staff and acquiring necessary expertise to expand locally and regionally”

Pride joined with energy for greatness has manufactured in us a remarkable brand of managing an account. We have served our faithful clients, shareholders, accomplices and boss with a level of duty that has separate us and made us an axiom in the business. We are at all times focused on the most elevated models of Corporate Governance. We have went along completely with the practices as prescribed by the august administrative bodies, for example, the Central Bank of Sri Lanka, the Colombo Stock Exchange, the Securities and Exchange Commission of Sri Lanka and the foundation of Chartered Accountants of Sri Lanka. In facilitating such gauges, the top managerial staff has guaranteed the bank led its business to the most astounding moral benchmarks and to the greatest advantage of every one of its partners.

3. John Keells Holdings PLC

John Keells Holdings PLC (JKH) is the biggest recorded organization on the Colombo Stock Exchange, with business intrigues fundamentally in Transportation, Leisure, Property, Consumer Foods and Retail, Financial Services and Information Technology, among others. Begun in the mid 1870s as a produce and trade broking business by two Englishmen, Edwin and George John, the Group has been known not re-adjust, re-position and re-imagine itself in seeking after development areas of the time. JKH was joined as an open constrained risk organization in 1979 and got a posting on the Colombo Stock Exchange in 1986. Having issued Global Depository Receipts (GDRs) which were recorded on the Luxembourg Stock Exchange, JKH turned into the first Sri Lankan organization to be recorded abroad. The Group’s venture logic depends on an uplifting standpoint, strong methodology, responsibility to conveyance and adaptability to change. JKH is likewise dedicated to looking after respectability, moral dealings, manageable advancement and more prominent social obligation in a multi-partner connection. JKH is a full individual from the World Economic Forum and an individual from the UN Global Compact.

The Group’s proceeded with achievement is subject to its triple primary concern execution, by giving monetary worth expansion, money related quality to its shareholders, pay back on venture to its speculators, installment of obligation financing to its lenders and advantages to its workers, whilst likewise keeping up its social permit to work. The John Keells Group is focused on conveying manageable monetary execution and development to all its differing partners. The Group’s sound budgetary administration depends on a differentiated methodology intending to increment monetary worth whilst guaranteeing stringent inner controls and powerful Enterprise Risk Management forms.

3. Portfolio Structure

An asset of an aggregate sum of 10,000 US dollars has been split among the above – said three organizations as specified prior. The underneath table demonstrates the arrangement of the split of shares among the three organizations as for the quantity of shares purchased from every partnership.

HoldingStating Share PriceHolding ValueShare quntity
AIA Insurance Lanka PLC300.00 LKR300,000.00 LKR1000
Commercial Bank of Ceylon PLC141.50 LKR707,500.00 LKR5000
John Keells Holdings PLC175.90 LKR439,750.00 LKR2500
Starting Portfolio Value (USD)End Portfolio Value (USD)Change in Portfolio Value (USD)
10110.0210268.64158.62
1st Week – 12/12/2015
HoldingShare QuantityStarting Share PriceShare price at the end of the 1st weekChange in priceStarting holding valueHolding valueTotal Gain/ loss
AIA Insurance Lanka PLC1000LKR 300.00LKR 300.00LKR 0.00LKR 300,000.00LKR 300,000.00LKR 0.00
Commercial Bank of Ceylon PLC5000LKR 141.50LKR 141.80LKR 0.30LKR 707,500.00LKR 709,000.00-LKR 1,500.00
John Keells Holdings PLC2500LKR 175.90LKR 179.90LKR 4.00LKR 439,750.00LKR 449,750.00-LKR 10,000.00
2nd week – 19/12/2015
HoldingShare QuantityStarting Share PriceShare price at the end of the 2nd weekChange in priceStarting holding valueHolding valueTotal Gain/ loss
AIA Insurance Lanka PLC1000LKR 300.00LKR 344.90LKR 44.90LKR 300,000.00LKR 344,900.00LKR 44,900.00
Commercial Bank of Ceylon PLC5000LKR 141.50LKR 141.50LKR 0.00LKR 707,500.00LKR 707,500.00LKR 0.00
John Keells Holdings PLC2500LKR 175.90LKR 177.80LKR 1.90LKR 439,750.00LKR 444,500.00LKR 4,750.00
3rd week – 26/12/2015
HoldingShare QuantityStarting Share PriceShare price at the end of the 3rd weekChange in priceStarting holding valueHolding valueTotal Gain/ loss
AIA Insurance Lanka PLC1000LKR 300.00LKR 324.80LKR 24.80LKR 300,000.00LKR 324,800.00LKR 24,800.00
Commercial Bank of Ceylon PLC5000LKR 141.50LKR 140.50-LKR 1.00LKR 707,500.00LKR 702,500.00-LKR 5,000.00
John Keells Holdings PLC2500LKR 175.90LKR 178.50LKR 2.60LKR 439,750.00LKR 446,250.00LKR 6,500.00
4th week – 02/01/2016
HoldingShare QtyStarting Share PriceShare price at the end of the 4th weekChange in priceStarting holding valueHolding valueTotal Gain/ loss
AIA Insurance Lanka PLC1000LKR 300.00LKR 324.80LKR 24.80LKR 300,000.00LKR 324,800.00LKR 24,800.00
Commercial Bank of Ceylon PLC5000LKR 141.50LKR 140.50-LKR 1.00LKR 707,500.00LKR 702,500.00-LKR 5,000.00
John Keells Holdings PLC2500LKR 175.90LKR 178.50LKR 2.60LKR 439,750.00LKR 446,250.00LKR 6,500.00

The offer costs of the three organizations have been going all over and having certain changes time by time because of specific reasons. With the new business advancements and the new business eras or might be disappointments in the business. Because of such numerous reasons the organizations have had their good and bad times.

3. Corporate News feeds

  • AIA Insurance Lanka PLC

Delivering continued premium growth

  • Combined income was up 3 for every penny to LKR 11,015 million, principally determined by the expansion of net earned premiums in both life and general protection organizations, incompletely counterbalance by lessened venture salary because of development in business sector estimation of value instruments.
  • Composite gross composed premium (GWP) salary developed by 19 for every penny to LKR 8,979 million driven by proceeded with development force in customary life business.
  • GWP of ordinary life business grew 23 for each penny to LKR 5,271 million representing 87 for every penny of the general Life GWP.
  • GWP of life business developed by 14 for every penny to LKR 6,093 million
  • GWP of general protection expanded by 30 for every penny to LKR 2,886 million
  • United benefit after duty added up to LKR 95 million

AIA Sri Lanka reported a united benefit after duty of LKR 95 million for the nine months finished 30 September 2015, contrasted and LKR 199 million in the relating period in 2014. The lower benefit was for the most part owing to the expansion in cases in the general protection business. The overflow of the disaster protection business is accounted for every year at the year end and is accordingly excluded in the second from last quarter benefit.

  • Commercial bank of Ceylon PLC

As the season of optimism methodologies, the Commercial Bank of Ceylon has reported it will introduce 300 hampers of treats worth Rs. 1.5 million to clients who get settlements by means of the Bank till the end of 2015. The all around timed advancement is interested in clients of ‘e-Exchange’ – the Bank’s own particular complex constant on-line cash exchange administration, and in addition to the individuals who use MoneyGram, Ria or Express Money settlement administrations. All beneficiaries of settlements by means of these administrations, who gather their monies from Commercial Bank, will go into an attract to choose who wins the hampers, every worth Rs 5,000.

The Commercial Bank of Ceylon is a standout amongst the most dynamic players in Sri Lanka in the field of settlements, offering clients a scope of choices. Remitters can send cash even without having a record in the Bank. Business Bank has its own Business Promotion Officers (BPOs) in key markets the world over where critical quantities of Sri Lankans are utilized. The Bank’s own e-Exchange stage is an exceedingly secure, minimal effort cash exchange office which is accessible to remitters through a system of operators in more than 50 nations.

Beneficiaries of settlements can gather continues from any of the Bank’s 246 branches in Sri Lanka, more than 60 of which are open even on bank occasions, and get to their assets through its system of 618 ATMs, which is the biggest money apportioning framework claimed by a solitary bank in the nation. MoneyGram is a worldwide assets exchange benefit that works a universal system of roughly 256,000 operators areas, empowering individuals to advantageously and dependably send trade to beneficiaries out around 192 nations and domains. Business Bank is one of the favored MoneyGram specialists systems in Sri Lanka for accumulation of settlements. Ria Financial Services, the third biggest cash move organization on the planet, offers 140,000 specialists areas by means of its worldwide system in 136 nations on six landmasses. Express Money has built up one of the biggest settlement systems in the business, with 170,000 specialists areas in 150 nation

  • John Keells Holdings PLC

JKH hotels under Cinnamon brand

John Keells Holdings (JKH) is setting its 11 lodgings under another “Cinnamon” brand in a million dollar re-marking exertion that positions the combination to go global as an inn network. It arrangements to expand its inn portfolio with interests in South Asia, South East Asia and perhaps the Middle East and is likewise equipping to re-dispatch its five star city inn, The Colombo Plaza, in November under the new brand name, industry sources said. They said that the lodgings will be re-marked under Cinnamon Hotels and Resorts with a specific end goal to make a chain, both locally and globally, while the organization is effectively taking a gander at India, Pakistan, Bangladesh and Singapore to extend. Coral Gardens, Beach Hotel Bayroo, Club Oceanic and Habarana Village will be in level two. Matching with The Colombo Plaza re-marking, the organization will have its own particular slow down at the World Travel Mart in London to advance both the new brand and its leader inn universally. Trans Asia will be re-marked in February 2006 and the organization is focusing at re–branding an inn at regular intervals from that point.

JKH will genuinely start its extension arrangement two years after the new marking exercise; however will put resources into suitable properties when the open doors emerge.

The relaxation segment of the organization as of now adds 34 percent to all that really matters. Visitor evenings per vacationer likewise expanded for JKH’s city inns, The Colombo Plaza and Trans Asia, amid the most recent two years.

Inhabitance of the city lodgings in the nation expanded from 45 percent in 2001 to 69 percent in 2003 and 72 percent in 2004. The city lodgings appreciate a higher extent of income created through feast administrations (comprehensively a fifth of the aggregate income) diminishing their affectability of profit to vacationer entries. A year ago, Trans Asia recorded 68 percent inhabitance, a nine percent bounce from 2003, though The Colombo Plaza had 83 percent inhabitance, rather than the 63 percent recorded in 2003. Instantly JKH represents extensively 25 percent of evaluated settlement limit in Colombo. In different zones of the nation, JKH’s offer is around 7.6 percent, making its aggregate convenience offer 10.9 percent.

4. Strategic Achievements

  • AIA Insurance Lanka PLC
  • AIA Insurance went into a bancassurance concurrence with DFCC Bank and DFCC Vardhana Bank. The association is elite at chose branches. The new organization with AIA Insurance will empower clients of both banks to acquire tailor-made life coverage arrangements.
  • Disaster protection, the bigger segment of our composite sections, accomplished new business premium of LKR 2,294 million and GWP of LKR 7,267 million. Through our master long haul speculation methodology and preceded with spotlight on cost control we have made quality for our life assets to the formal of both shareholders and policyholders. Holding a cradle to secure the asset against fleeting vacillations, we pronounced an existence overflow of LKR 100 million, in correlation to LKR 200 million in the earlier year.
  • The Company keeps up a reasonable speculation methodology for its interests in accordance with its venture theory and venture strategy. These are planned with the essential target of giving true serenity and success to its policyholders, shareholders and different partners. The Company along these lines concentrates on a long haul speculation technique. The altered wage speculation technique concentrates on length of time procedure with ventures made into high review money related instruments. The value speculation system concentrates on sound basics with ventures being made into recorded fluid blue chip counters.
  • Commercial bank of Ceylon PLC
    • eZ Cash Sri Lanka’s chief Mobile Money administration accomplices with Sri Lanka’s biggest private segment bank, Commercial Bank of Ceylon PLC, to give eZ Cash clients the capacity to pull back money from chose ATMs island wide. The administration will be reached out to all ATMs of Commercial Bank sooner rather than later. Business Bank works the nation’s single biggest ATM system, and the biggest online 24-hour trade apportioning framework out the nation. With this office, notwithstanding the 20,000 retail focuses, eZ Cash account holders can pull back cash whenever it might suit them from any Commercial Bank ATMs showing the eZ Cash logo. The base withdrawal worth is Rs. 100 and the greatest is Rs. 5,000 amid a solitary exchange.
  • John Keells Holdings PLC
  • The Information Technology industry bunch recorded incomes of Rs.7.21 billion and a PAT of Rs.280 million, contributing 7 for every penny and 2 for each penny to Group Revenue and PAT individually. The Office Automation business saw a change in the productivity of its item blend because of a higher commitment from both the Smart Phones and Copier fragments. The developing slant towards innovation and the expanding substitution of highlight telephones with advanced cells drove volumes in the Mobile Phone portion whilst the organization’s broad merchant system and unparalleled notoriety for after deals administrations expanded entrance and enhanced piece of the pie in the Copier fragment. The Group’s Business Process Outsourcing (BPO) operations in India kept on broadening its customer portfolio on the back of recouped interest for BPO administrations from key markets, for example, the United States of America.
  • Return on capital employed (ROCE) increased marginally to11.8 per cent from 11.7 per cent in the previous year.
  • Return on equity (ROE) remained at 11.0 per cent as in the previous year.
  • Debt to equity ratio decreased to 15.9 per cent compared to 19.5 per cent in the previous financial year.
  • Diluted earnings per share increased by 15 per cent to Rs.14.15.
  • Cash earnings per share increased by 10 per cent to Rs.16.55.

5. Technology Strategies

  • AIA Insurance Lanka PLC

When looking into the technological strategies that AIA Insurance have used, as the latest technological strategy which include, AIA Insurance Lanka PLC gives offices to its esteemed clients who use a credit or check card to pay their premiums on the web. AIA Insurance Lanka PLC maintains whatever authority is needed to deny any assistance, end or suspend benefits or cross out exchanges at whatever time in its sole circumspection. AIA Insurance Lanka PLC might return/discount/scratch off the installments endless supply of the client gave such demands are certifiable and satisfactory. AIA Insurance Lanka PLC has the privilege to deny assistance, end client get to or wipe out exchanges whenever at the sole circumspection of AIA Insurance Lanka PLC. AIA Insurance Lanka PLC additionally has the privilege to hold stores pending an examination of extortion or abuse of this site. Fruition of an installment exchange is dependent upon both the approval of installment by the material card organization and acknowledgment of your installment by AIA Insurance Lanka PLC. In the occasion your installment is not handled or approved by your card organization or AIA Insurance Lanka PLC your installment obligation might stay exceptional and unpaid and you will be subject punishments, late expenses and intrigue charges surveyed by the applicable substance consequently. All or any of these commitments stay sole obligation.

  • Commercial bank of Ceylon PLC

Combank e-Exchange is the moment cash exchange administration of Commercial Bank, which empowers Bangladesh ostracizes to profit exchanges from numerous nations around the globe. This is a modern, yet ease, ongoing, online cash exchange office which is made accessible to remitters through a system of operators and banks in numerous nations around the globe. Those accepting cash through this office can gather the returns of the settlements from any of our online associated branches and SME’s. Continues can be gathered even on vacations through our vacation managing an account focus, or Evening Banking focus. This office likewise makes it feasible for non clients of Commercial Bank to get internal settlements as money or to their records with different banks in Bangladesh through Bangladesh Electronic Fund Transfer Network marked as Combank EFT.

  • John Keells Holdings PLC

Giving quality, world-class Information Communication Technology administrations from consultancy, programming administrations and data mix to office computerization, JKH offer end-to-end ICT administrations and answers for clients in Sri Lanka and South Asia, and additionally the UK, Middle East, Scandinavia and the Far East. With an unparalleled client base, including neighborhood blue chip organizations and industry pioneers and global Fortune 500 organizations, they are at the front line of making Sri Lanka an ICT center in South Asia.

6. Online presence

Web Site DesignThe always showing signs of change picture tab on the highest point of the site simply gives the thought of the Corporation being a differentiated organization. In any case, for a first time client it can be extremely confounding to comprehend what this organization is truly about. In any case, it has an expert viewpoint to the site which gives drop down connections to all the vital data tabs.
E – Commerce FunctionalityGuaranteed individuals can likewise acquire data on the advantages scope, status of cases and supplier catalog, if any. Policyholders can likewise enquire about the status of enlistment, charging record, claims, medicinal cost setback and apply for online upgrade of part data through the site
Languages. Regional Versions, currencies , international ShippingIt has multi dialects which speak to every one of the parts of the globe and the site distinguishes the client’s IP and gives him/her, the immediate access to the territorial site from their principle web address itself.
Availability of informationGives thorough data on Company Background, Service Highlights and Group Insurance Products. Guests can get to Hospital and Clinical Fees Surveys and Claims Turnaround Reports, download different structures, demand for proposition, and so on. Also, “Client Service Survey” is there to gather significant exhortation on the administrations gave to customers.
Web Site DesignThe continually changing picture tab on the highest point of the site only gives the thought of the Corporation. In any case, for a first time client it can be extremely befuddling to comprehend what this organization is truly about. Be that as it may, it has an expert standpoint to the site which gives drop down connections to all the important data tabs.
E – Commerce FunctionalityAs an E-trade the site does not qualify to be evaluated as a decent site. The site does not give fundamental connections to every last bit of its organizations or vital accomplice organizations, which is all that much required for the clients. Also, the online offices are not at an extremely attractive level subsequent to the clients to have to look all over all an ideal opportunity to get the essential data.
Languages. Regional Versions, currencies , international ShippingThe language used is English as the main and only language for the website. There are no regional versions of the website for Commercial bank and the currency in used is LKR. That is a barrier for the foreign customers to engage in business with the company through the website due to lack of awareness in the currency used.
Availability of informationThe site furnishes direct points of interest concerning the fundamental data of a site, for example, contact subtle elements and so on. Be that as it may, the client records are not appeared to be overseen appropriately because of absence of center the organization providing for its e-trade business at present
  • Commercial bank of Ceylon PLC – www.combank.net

 

  • John Keells Holdings PLC – www.keells.com
Web Site DesignBeing a mother company to many other daughter companies the web site necessarily talks about these companies and the brand of the group. it provides easy access to all the websites and the user interface provides easy access for all the customers log in with respect to their purpose, business orientation.
E – Commerce FunctionalityAs per the e-commerce functionality of the website it provides direct links to all the daughter company websites and the information links through the drop down links in the website. The business functions are mainly held via daughter company websites and the efficiency and effectiveness is managed in the daughter company websites.
Languages. Regional Versions, currencies , international ShippingThe main language is English since it is the most used language. It is also being applicable for all daughter company websites. The currencies are being in US dollars for tourists.
Availability of informationAll the important data regarding the business operations of the Corporation is plainly specified in the site. Counting the news identified with business operations of the mother organization and the daughter organizations. The contact data important insights in regards to the business are plainly said in the site with no disorder of data. That is primarily because of giving the site interfaces independently and not distributed their data as a part of the principle site.

References

  • AIA Insurance Lanka PLC . (n.d.). Retrieved 2015, from http://aialife.com.lk/
  • Commercial Bank of Ceylon PLC . (n.d.). Retrieved 2015, from http://www.combank.net/
  • Financial Times . (n.d.). Retrieved 2015, from http://portfolio.ft.com/holdings/overview/894ea6c2-58de-4683-a42f-67bbfdd95eda
  • John keells Holdings PLC . (n.d.). Retrieved 2015, from http://Keells.com.lk/