Best Buy in China

Best Buy’s failure in China is another example of a slow, arrogant major international player that didn’t understand China. Their own explanation of why they failed: â€Å"China’s demand for low prices without regard for service,† is clearly a lame excuse. By Fang Yu, China Entrepreneur magazine Best Buy shut down their nine stores in China on February 22nd, and within 48 hours fell into an unprecedented credibility crisis. Customers rushed to Best Buy stores on hearing the news and were locked outside security doors.They finally broke through the doors and went into the shops, partly to seek refunds on the extended warranty policies they had purchased. Because of quarrels with staff over return policies, the Shanghai Municipal Government had to send police to maintain order. Best Buy, which has always boasted it was centered around consumers, never predicted it would withdraw from the Chinese market in such a disgraceful way. Best Buy China top executives said the business closed because their model did not adapt to the Chinese market.Best Buy China president David Sisson said, â€Å"I have never worked in such a price-sensitive market. † Best Buy shops within China were forced to close after a five year struggle Best Buy explains its failure with the excuse â€Å"Chinese consumers pursue low prices rather than services. † This excuse shows that Best Buy still does not understand why it failed. This excuse does not take into account that China’s spending power is the fastest growing in the world.Home appliance expert and director of the Pal consulting firm Luo Qingqi argues luxury brands now entering into Chinese second- and third-tier cities, and the purchasing power for luxury cars in Chinese inland is no worse than in the first-tier cities. Ding Jie, a global partner at the Roland Berger consulting firm, notes that there are foreign retailers running excellently China. Why not Best Buy? Slow and arrogant Denn is, who has worked for ten years selling audio products, worked as an employee at Best Buy until it shut its doors.After signing a compensation agreement, he began to seek a new job. He first came to a giant domestic chain giant to be interviewed, but he felt the treatment he received and business culture was too different from Best Buy, so he started looking for jobs at foreign retail enterprises. Dennis says the experience of working at Best Buy was profound and lasting. It’s difficult for him to adapt to the performance-oriented culture of domestic enterprises that stresses absolute obedience and brute execution.Instead, he has become used to Best Buy’s â€Å"people-centered† culture: trying to win returning customers and promotion opportunities based on giving good service. He also became used to the sound of the English name that the store provided him with. The employee culture of Best Buy, which is not based on sales volume, enables the store to be peacef ul, without a feeling of fierce competition between the sales staff. However, observers believe this unhurried attitude is exactly what drove Best Buy to become a loser in China’s fiercely competitive home appliance market, which is dominated by the retailers Suning Appliance and Gome.When Best Buy entered China, Suning Appliance chairman Zhang Jindong said his company would ignore Best Buy for the next five years. Gome founder Huang Guangyu also said Best Buy could not compete with Gome in China because Best Buy did not have a sense of where to put its stores. People who participated in the press conference announcing the acquisition of Five Star Appliance by Best Buy in 2006 remember that Five Star founder Wang Jianguo was excited to announce the establishment of 300 stores annually with the financial backing of Best Buy.However, this plan was quickly denied by Best Buy top executives. Wang and his team eventually left the company. In the United States, Best Buy defeated th e second-largest retailer Circuit City, which used a consignment model, similar to Gome and Suning in China. Best Buy then entered the Chinese market with the arrogance of a missionary, ignoring the gap between its own model and the Chinese market. In Best Buy stores, the aisles are clearly wider than in Suning and Gome, the shelves aren’t as crowded, and fewer brands and models are on display.Best Buy’ believes the space should be left for consumers rather than products. Suning Shanghai top executives pointed out North Americans prefer open and wide stores, and don’t require a wide range of product lines ranging from cheap and generic to expensive top quality brand names. Best Buy’s style is more suitable to North Americans emphasizing individual freedom, and China’s market is more similar to Japan’s. Insiders recalled Best Buy’s first China president Lu Weimin knew the local market very well.The Chinese-born American, who graduated from a special class of gifted teenagers of the University of Science and Technology of China, better understood the rules of China’s home appliance industry than his colleagues. Lu Weimin helped to bring about the acquisition of Five Star. This helped Best Buy become a major retailer. However, Best Buy still did not want to give up the business model it developed and was proud of, and dreamed of restructuring more home appliance retailers such as Five Star into the Best Buy fold.This resulted in a two-brand operation over the past five years, so that the Best Buy management team’s resources and focus were diluted. Five Star former top executives recalled Lu Weimin pushed Best Buy to expand. Lu chose several properties in Shanghai, but, following Best Buy’s management process, all matters related to store openings must be reported to Best Buy International. Best Buy’s competitors were opening a new store every four or five days. Faced with the slow proces s of opening new stores, Lu hoped he could use financial muscle to expand quickly.For instance, Best Buy bid for Shandong Sanlian Commercial, which in the end was acquired by Gome. Many foreign executives who are not familiar with the Chinese market have a hard time understanding the importance and feasibility of quickly opening stores. An investor said he had heard a foreign executive of a consumer goods company laugh at his Chinese colleagues, saying, â€Å"What? How dare they plan to open 200 stores a year! † In fact, these scoffers generally only ever come to Shanghai and Hong Kong and have no idea of the width of the Chinese market.Managed by Best Buy, Five Star has expanded slowly (the number of stores has only grown to more than 160 from nearly 140 in 2006). Lu left Best Buy in April 2007, after he was made a figurehead. He had worked there for more than ten years. When the news of the closure of Best Buy stores was released, a departed top executive pointed out that i f the failure was a result of a poor business model, why did the Xujiahui store in Shanghai become one of the world’s top 50 stores, with an operating revenue of RMB 500 million, becoming profitable in 2010? The Xujiahui store’s property costs were denominated in U. S. ollars, and were the highest in the Best Buy system. One of the reasons for the success of the store was that its site was chosen when Wang Jianguo served as Best Buy global vice president. The superior location of the Xujiahui store was envied by competitors. Following in Wang Jianguo’s shoes, Best Buy sent many executives to China, who were good at IT systems and background management processes, but did not have experience in selecting sites and opening stores in unfamiliar cities. â€Å"We can say they are outsiders! At the root, it was caused by the people factor. If they had different people, the results would have been different. Missing its chance After stumbling through the first three ye ars, Best Buy made some changes. In 2008, Best Buy started to speed up its expansion in China, opening in Shanghai, Suzhou, Hangzhou and Beijing to lift the total number of stores to nine. This change was rooted in a shift in government policy. In September 2008, the Ministry of Commerce issued a document shifting the approval process for foreign retail stores from the national to the provincial level. Best Buy, which had a good relationship with the Shanghai government, quickly opened more stores in Shanghai to consolidate its base.But compared with another retail giant, Wal-Mart, Best Buy again did not correctly understand the policy direction of the Chinese market. Wal-Mart quickly established wholly-owned companies (with taxes going to local authorities) in more than ten provinces in China, and quickly opened more than 30 stores in China in the first half of 2009, mainly in second- and third-tier cities. The new regulations of the Ministry of Commerce were intended to help forei gn retailers make investments in China. The Shanghai market, where land is expensive, ended up putting a lot of pressure on Best Buy.At that time, Suning only allocated 10% of its planned stores to central Shanghai and focused on opening stores in the suburbs, but Best Buy was making efforts to squeeze into the core business district, which was already full of the rival stores. The result was that the number of Best Buy stores grew, but diminishing returns did not cover the operating costs. David Sisson hinted at this when he explained that he shut down all of the stores in China because â€Å"the costs needed to keep one or two stores open are actually are almost the same as the cost needed to keep nine stores open. Best Buy missed its window for rapid development, and perhaps had no time to think about how to enter more deeply into the Chinese market because it was struggling with strong competition and high land prices in first-tier cities like Shanghai. Best Buy top executives were aware of the problems with the company’s expansion. Under pressure to make profits in 2010 (the 2010 third-quarter fiscal report shows Best Buy same-store sales fell 5%), Best Buy first adjusted the company’s global management structure.Best Buy global vice president and Five Star CEO Wang Jian told China Entrepreneur, â€Å"In 2010, Best Buy adjusted the organizational structure and set up the America region, Asia region and Europe region. One major reason for the adjustment is that Best Buy wanted to give full authority to enable it to be more localized in operation and development. † At that time, Best Buy’s attitude to Five Star changed. Best Buy encouraged Five Star to â€Å"open as many as stores as possible,† but Five Star also faced the problem of lagging development.When Suning and Gome completed setting up in first- and second-tier cities and started planning to enter into third- and fourth-tier cities, Five Star was still only opera ting in limited areas and never opened stores in Shanghai. In Best Buy’s last days, the low-price commitment could be seen everywhere, and even the consumers could feel the change. Claire, a loyal Best Buy customer who works at a foreign company in Shanghai, said, â€Å"Compared with the beginning, the number of salespeople in the store grew obviously. In the past, when you looked around by yourself in the store, no one would bother you. But at the end,] if you stood in front of an item for a while, a salesperson would come up to you. † Best Buy started taking the initiative to increase sales. Learning the wrong lesson After closing all of its China stores, Best Buy top executives said the lesson learned in the Chinese market is â€Å"price, price and price! † In the opinion of Best Buy top executives, Chinese consumers’ sensitivity to the price is so overwhelming that Best Buy’s â€Å"customer-centric† values were meaningless. However, Best Buy’s customer-centric philosophy and various design details were adapted by Gome and Suning, making Best Buy’s conclusion questionable.The Five Star top executive interviewed by this magazine said the Best Buy model uses its own staff, unlike stores using a consignment model. He gave an example. A 5,000-square meter store needs 260 staff, and in consignment stores, generally 200 come from the manufacturers. But Best Buy will not open a store until recruiting all 260 staff. Because of the emphasis on service, the training period for retail staff is longer, with a six-month to one-year training period for management. A shortage of talent was an important reason for Best Buy’s slow rate of opening stores.Home appliance expert Luo Qingqi believes Best Buy’s problem is not that is acted like a traditional retailer (as opposed to selling on consignment like Gome and Suning) but the product line. Products sold at Best Buy stores were mainly foreign. Chinese br ands such as Midea, which offers many popular product lines, did not appear on Best Buy’s shelves. Even the foreign brand Whirlpool cooperated more with Suning and Gome. â€Å"We are operating within the Chinese market and will notice which stores consumers like to visit, and use them as our main distribution channels,† said a Whirlpool employee.Ding Jie, a global partner of the Roland Berger consulting firm, believes Best Buys’ high operating costs were not its main problem, but rather that Best Buy cut itself off from the supply chain by refusing to adapt the consignment model. Ding Jie said most staff members at China’s consignment-based home appliance stores are employees of the manufacturers. â€Å"In China, consumers do not have strong core brand awareness, and the difference among home appliances is not big. Manufacturers focus on distribution channels that allow them to collect market information and determine market trends.Manufacturers and dist ributors cater to the needs of consumers with the collaboration of the entire industrial chain. † The Best Buy model serves consumers by being independent. But because there is no personalization and differentiation of products, it is bound to fail. According to Ding Jie, the main advantage of foreign retailers is their management model. But if they want to succeed in China, foreign retailers should let their local staff operate more freely and give them the power to adjust the business model. Many foreign retailers that failed in China might have succeeded if they empowered local staff.

E-Library – Requirements Specification

E-Library – Requirements Specification Author:Jiri Walek Status:Draft Contents 1. Introduction2 1. 1. Overview of the E-Library System2 1. 2. Keywords2 1. 3. Abbreviations and Terms2 2. Administration Requirements3 1. 4. Types of User Accounts and Permissions3 1. 5. Administration Interfaces3 3. User Requirements4 1. 6. Online User Registration4 1. 7. User Login/out4 1. 8. Catalog Search4 1. 9. Catalog Quick Search4 1. 10. Catalog Browsing5 1. 11. Advanced Catalog Browsing5 1. 12. Create Select List5 1. 13. Check Out eBooks6 1. 14. Explicit eBook â€Å"Return†6 ? 1. Introduction This document is an example of a Software Requirements Specification document which can be imported into Polarion, then exported and re-imported in a collaborative process utilizing the Word Round-trip feature. It is intended for demonstration only. The document describes a fictitious online eBook lending library with optional eBook online sales component. The focus is on simplicity rather than depth and completeness, that you may more easily understand the Document features. 1. 1. Overview of the E-Library System This system provides an online portal analogous to a public library where registered patrons can borrow books. The main difference is of course that the books in the library catalog are all in electronic formats which incorporate Digital Rights Management (DRM) enabling the system to â€Å"lend† an allowed number of copies to registered users. In addition, when a book has the proper rights, the E-Library can sell patrons a license for a personal copy of the electronic book which they can retain permanently. 1. 2. Keywords This document contains keywords which correspond to Severity values in the Polarion system when to document is imported for management by Polarion. DOCUMENT KEYWORDPOLARION SEVERITY VALUEMEANING â€Å"MUST_HAVE†must_haveNo release without SHOULD_HAVE†should_haveMay slip to next release if time runs short â€Å"MAY_HAVE†may_haveMay be included in release if dependent things are implemented, otherwise will not be included â€Å"OPTIONAL†optionalMay be included in release if time/resources allow, otherwise will be postponed to another release 1 . 3. Abbreviations and Terms TERMDEFINITION Carti. e. â€Å"shopping cart† – a collection of one or more eBooks that a patron has marked for purchase during the current session CatalogThe database of eBooks available for loan and possibly for sale as well Check OutThe act of â€Å"borrowing† an eBook from the library. Term is not used in reference to the process of paying for a purchased eBook (see Purchase) Check InThe act or â€Å"returning† a previously â€Å"borrowed† (checked out) eBook. DRMDigital Rights Management eBookAn electronic book or other publication lent or sold by the E-Library system ISBNInternational Standard Book Number LCLibrary of Congress Loansee Lend LendThe process of flagging an eBook so the appropriate DRM understands that one of the allowable number of â€Å"copies† has been allocated to a patron for the lending period. PatronA user of the E-Library portal PurchaseThe process by which library patrons purchase a DRM license for a personal copy of an eBook. Also the action of a user navigating into the process for purchasing the eBooks listed in their Cart. StoreAn area of the portal that lists a subset of the library’s eBooks, that being eBooks for which users may purchase a license for a personal copy of the eBook. 2. Administration Requirements This section outlines the main requirements that relate to administration and management of the E-Library system. 1. 4. Types of User Accounts and Permissions The system must provide for the following types of user accounts: ACCOUNT TYPE NAMEPERMISSIONS AdministratorUser can access any component or area of the system including accounts of other users LibrarianUser can access the catalog management features of the system PatronUser can access the general library features, including browsing, searching, check out, check in, reserve, and purchase StudentSame as a Patron, except may not access Purchase features The system must provide user management to manage the user role assignments. Each user can have multiple user roles assigned. It must be possible to 1. 5. Administration Interfaces The system must provide user interfaces for the following roles/functions: †¢System Administration – including database management, server management, backups, etc. User type: Administrator †¢Catalog Management – all non-technical functionality related to managing eBooks in the library catalog. User types: Administrator, Librarian 3. User Requirements This section outlines the main requirements that relate to the end users who borrow and purchase eBooks from the E-Library. . 6. Online User Registration Users must be able to create Patron or Student accounts by registering online. A suitable registration page or pages should be provided. New users must go thru a verification process (TBD) to confirm their email address before their account is activated in the system. 1. 7. User Login/out Once verified, users must be able to log in to the portal. Users must be able to change their password (but not their user name/ID) There must be a way for users to retrieve a lost password Users must be able to log out. There must be a session timeout mechanism that will automatically log the user out after a period of time (period TBD). On logout, the contents of user’s Select List and Cart are cleared. The contents of the Reserved List is preserved. 1. 8. Catalog Search Users must be able to search for eBooks The system should provide interfaces for both â€Å"simple† and â€Å"advanced† searches †¢Ã¢â‚¬Å"simple† should be a search on any one of fields Author, Title, or ISBN. †¢Ã¢â‚¬Å"advanced† should provide an easy way to construct complex searches on multiple fields with different logic (e. g. AND, OR, NOT) 1. 9. Catalog Quick Search The system should provide several â€Å"quick search† options: †¢Newest eBooks – returns a listing of the 10- 50 (configurable) most recently added eBooks †¢Top 20 Titles – returns a listing of the 20 most frequently borrowed eBooks oThe actual number should be configurable by an administrator oThe UI should provide a pick list of values: 10, 20, 25, 50, 100 †¢Latest Returns – returns a list of 10-50 (configurable) most recently checked-in eBooks oEither explicitly checked in by a patron, or lending period expired freeing the eBook for loan oeBooks listed in this set must not have any reservations†¦ must be available for immediate loan 1. 0. Catalog Browsing Users must be able to browse the eBooks in the catalog Users must be able to select how they want to browse: †¢Browse by Author oMust be able to select an alphabetical subset†¦ e. g. author names beginning with A, or M for example †¢Browse by Title oMust be able to se lect an alphabetical subset†¦ e. g. author names beginning with A, or M for example †¢Browse by genre (e. g. fiction, non-fiction, science fiction, etc. 1. 11. Advanced Catalog Browsing Users should be able to browse by Publisher Users should be able to browse by Book Award Users should be able to browse according to a combination of data, such as by Author + Genre, Title + Year of Publication, Author + Book Award, etc. 1. 12. Create Select List The Select List is similar to a shopping cart except that the checkout processes a loan of the eBooks in the list rather than a purchase. Each user must be able to save a list of eBooks they want to borrow – their â€Å"Select List† †¢The Select List is only for the current session and is cleared when the session terminates †¢Each eBook added to the Select List remains in the list for 20 minutes. During this time, the number of copies available for loan is reduced by 1 and the number available is shown to ot her users. oIf the time expires and the eBook is removed from the Select List, then the number of copies available for loan is increased by 1 and the number available is shown to other users. The number of eBooks user may add to their Select List is limited to the checkout limit defined in the system configuration minus the number of eBooks patron has currently checked out. oIf user currently has the maximum number checked out, then all Add to Select List links should be disabled for that user. †¢If all copies allowable under the eBook’s DRM are currently on loan to other users, then the eBook cannot be added to any user’s Select List (the UI widget is disabled) and the UI must inform the user that no copy is currently available for loan. 1. 13. Check Out eBooks User should be able to navigate to Check Out any time via a readily visible link or button The checkout page must display the eBooks in the user’s Select List The user must be able to remove eBooks from the Select List at this point Via an appropriate UI widget, user should be able to execute check out which processes on all the eBooks left on the Select List. When checkout is complete, user must be presented with a page of the checked out titles, each title having a DOWNLOAD widget. Clicking the widget downloads a copy of the eBook with appropriate DRM applied. Each checked out eBook should remain listed on the user’s Downloads page until the loan period expires. 1. 14. Explicit eBook â€Å"Return† Users must be able to â€Å"return† any eBook on their Downloads page that has not yet been downloaded via an appropriate â€Å"RETURN THIS EBOOK† widget. Executing the return must remove the eBook from the user’s downloads page, decreases the count of eBooks the user currently has checked out (if that value is greater than zero), and increases by 1 the number of copies of the eBook available for loan.

Embarrassment and impression management Research Paper

Embarrassment and impression management - Research Paper Example His view underlined the importance of communication and suggested that identity of a person is no more than a reflection of the image of the self that is communicated to a person through his/her interactions with others. According to Cooley, people see themselves reflected in each others’ eyes and through their communications and interactions with others, gain messages about habits, physical attributes and personal tastes which influences their own judgments and perceptions about self. The control and modulation of the way in which a person chooses to present himself or herself to others is referred to as impression management. Self presentation in the context of impression management has been defined by Jones and Pittman as â€Å"the shaping of† a person’s â€Å"responses to create in specific others an impression that is for one reason or another desired by the actor.† (Jones and Pittman, 1982: 233). Every person therefore controls the kind of impression s/he wants others to gain by controlling what is revealed to others, i.e, the extent of self disclosure. Goffman(1959) supplemented Cooley’s theory about impression management by offering the view that individuals present themselves as a performance, choosing which role to play at any given time. Mets and Grohskopf (2003) have summarized the management of the presentation of the self as â€Å"the process by which individuals, more or less intentionally, construct a public self that is likely to elicit certain types of attributions from others, attributions that would facilitate the achievement of some goal, usually to acquire social rewards or advantages, or to prevent loss of self esteem when future failure seems probable (p 360). As may be noted from the above views, social integration implies a high degree of attunement to others’ perceptions about oneself, when this yields a positive perception there is pride and integration of the individual is promoted, but when the individual seeks a negative reflection/perception of the self as gained from the impressions of others, there is shame and a feeling of alienation, which produced embarrassment. One notable example of embarrassment is politician Sarah Palin, who was the Vice Presidential candidate in the American Pr esidential elections of 2008. During the course of the political canvassing, Palin in a radio interview with Glenn Beck, was asked about how she would handle North Korea and responded that we would have to stand by our North Korean allies. This was yet another in a long history of gaffes, such as for example, unable to demonstrate any understanding of the separation of church and state or name a single Supreme Court case, and her claim that she was qualified to handle foreign policy because she was from Alaska which is close to Russia. In responding to the realization that she had made a serious gaffe, Palin defended herself by going on to Facebook and attacking Obama’s gaffes instead.(Stickings, 2010). It may be noted here that a considerable amount of publicity was devoted

Legalization of Prostitution Essay Example | Topics and Well Written Essays - 2500 words

This summary is not available. Please click here to view the post.

How will the Professional MBA program prepare you for your chosen Scholarship Essay

How will the Professional MBA program prepare you for your chosen career path - Scholarship Essay Example roduce me to a broad spectrum of opportunities such as pursuing of an entrepreneurial route, progress for my business, handling new and challenging responsibilities and utilizing others such as marketing where my desire lies. This would ensure I achieve a wide array of knowledge base, insights and boost my poise to operate successfully in all environments. Most business executives in the corporate world with MBA degrees are embellished with high levels of responsibility and seniority within their job description. Coupled with my degree in criminal justice, the MBA degree will guarantee flexibility and fluidity in changing of career paths in order to exploit new opportunities hitherto underutilized. It will also to appreciate the complexities involved in business, bolster the practice of law and initiate conversance with the laws governing commerce. This diversity will put me up to date with the goings on in the world of business hence better decision making when it comes to issues of

New Physics and Chemistry Discovered at the CERN's Large Hadron Research Paper

New Physics and Chemistry Discovered at the CERN's Large Hadron Collider - Research Paper Example If this occurs, it will produce a material known as quark-gluon plasma, which probably made up the universe in the time following the Big Bang. Physicists are interested in this material because the expansion and cooling of the material would likely show how the particles that exist today arose out of the conditions following the Big Bang (â€Å"CERN - LHC Experiments: ALICE†) 2. ATLAS: A Toroidal LHC Apparatus, records measurements for the results of particle collisions. It tracks what particles are created and destroyed in a given collision, and the path of travel and energy for those particles (â€Å"CERN - LHC Experiments: ATLAS†). They are both considered general-purpose detectors. The experiments being performed using them focus on the search for the Higgs boson and the substance known as dark matter (â€Å"CERN - LHC Experiments: ATLAS†; â€Å"CERN - LHC Experiments: CMS†). ... 3. CMS: Compact Muon Solenoid, has the same research goals as ATLAS, but it has different technical specifications to achieve those goals, especially with regard to the design of the magnet system within the equipment (â€Å"CERN - LHC Experiments: CMS†). The CMS has been designed to detect the presence of â€Å"missing† energy, which could indicate the presence of stable but weakly-interacting particles, such as energetic neutrinos. This missing energy occurs when the particle moves in the same direction as the beam pipe and so cannot be detected; the use of the CMS helps to cover this gap and provide a more complete picture of the collision event (Pi et al. 2011) 4. LHCb: Large Hadron Collider beauty is expected to help us understand why the universe appears to be composed almost entirely of matter, but no antimatter. It specializes in investigating the slight differences between matter and antimatter by studying a type of particle called the 'beauty quark', or 'b qua rk'.† (â€Å"CERN - The LHC Experiments: LHCb†) 5. TOTEM: TOTal Elastic and diffractive cross section Measurement device is included in the experimental set-up to study the physics of the elementary particles that is always hidden to the general-purpose experiments carried in such an accelerator. It is of immense importance to measure the size of the proton and also calculate accurately the LHC's luminosity, so that the results may be utilized for calibration of the whole set-up (â€Å"CERN - LHC Experiments: TOTEM†) 6. LHCf:  Large Hadron Collider forward tries to simulate Cosmic Rays, which are the naturally occurring charged particles in Earth’s upper atmosphere, colliding with our atmosphere and resulting in stream of

Central Bank and Monetary Policy Research Paper

Central Bank and Monetary Policy - Research Paper Example The main reason why countries create their own central banks is to ensure control of their currency. The central bank is the only authority that can print money and such responsibility cannot be given to anyone else as the consequence may turn out to be disastrous. The role of the central bank evolved over time and the literature in monetary theory points out that central banks work to reduce the impact of economic fluctuations and to minimize volatility in the financial system. They pursue five objectives to ensure economic and financial stability. The goals of central banks are generally specified as price stability, stable real growth, financial stability, interest rate and exchange rate stability (Mankiw, 2011; Geraats, 2006, pp. 37-40). The main goal of this research project is to help understand how the central bank manages and controls the quantity of money in the economy and its relation to price stability. It also brings out the main tasks of central banks and the challenge they face in conducting monetary policy. Objectives of Central Bank: The major role of the central bank of any country in the world is to monitor the financial structure of the respective country. Central banks also control the volume of financial transactions which are made by all other banks in the economy. These other banks include commercial banks, other non-banking financial institutions. The most important objective of the central bank is to manage the amount of financial resources of the economy and thus to maintain the stability in the economy. This stability is maintained in the economy by the central bank of the country in respect to stability of prices of goods and services, stability of financial transactions and prices of these transactions. Also stability is required to be achieved by the central bank in terms of movements in nominal as well as real interest rates and stability in exchange rates. Finally, the most important role of the central bank is to maintain stabi lity in the real growth of the economy (Mankiw, 2011). Central banks of different countries have long been correlated with secrecy. Even in regard to the present trend toward higher level of transparency of different monetary policies, it can be said that, this has not dispersed the inscrutability with which all central bankers often argue. Various researchers have provided an economic explanation for different roles of oblique communication. Under the conceivable assumption that there exists imperfect common knowledge or information about the level of transparency, all economic outcomes have been decided by both actual as well as perceived transparency. It has been shown, in numerous researchers, that it can be helpful to merge actual transparency with the perceived opacity. The optimal or most efficient communication strategy for the central bank is related to the process of providing clarity about the target level of inflation. But the role of the central is also related to the p rocess of providing information with recognized ambiguity about the target of prevailing as well as expected output-gap and supply shocks. Therefore, â€Å"the central bank benefits from sustaining transparency misperceptions, which helps to explain why transparency of monetary policy has not eliminated the mystique of central bank speak† (Geraats, 2006, p. 38; Blanchard, 2007, pp. 69-75). Balance sheet of central bank: The balance sheet of the central consists of assets and liabilities.