...2014 Business 100 1. What countries represent the largest global opportunities for the next decade? What factors determine the size of the opportunity? China and India represent the largest global opportunities for the next decade. They have better access to factors of production, reduced risk, and an inflow of new ideas. 2. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? To calculate the balance of trade you get the difference between a nation’s exports and imports. The growing United States trade deficit impacts the economy in which the growth may slow over the next few years because of the global economic crisis. 3. Explain the meaning of “strong” currency and “weak” currency. What are the advantages and disadvantages of each? Strong currency is a currency that is improving compared to other currencies. Weak currency is when the currency has fallen in value. Weak currency is the complete opposite of strong currency. An advantage of strong currency would be that it lowers inflation. A disadvantage of strong currency would be that it increases the cost of housing. An advantage of weak currency would be that it would have profitability for companies. A disadvantage would be that foreign goods will be more expensive. Application Question 1. Take a look at Fortune magazine’s most recent list of the 500 largest global companies. What are the top three industries on the list? What three...
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...Marketplace: Business without Borders Review Questions 1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity? China, India and Brazil are some of the largest growing global businesses. These comes from many different factors; GDP growth and population are two major causes. China has the largest populations in the world along with the fastest growing GDP percentages. Brazil’s population is not as large but does has a high GDP percentage, and also a high Dollar Pre Capital GDP. 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? When their country of origin has naturally cheap raw materials or if their currency has been undervalued, they are naturally cheaper than their competitors from other countries. This gives them better margins and they thrive. 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? The money being spent to buy things from other countries is much larger than the amount of money where other countries are buying from the U.S. The deficit means we are buying more than we sell. To make up for the difference people and governments from other countries buy U.S. investments assets. 4. Explain the meaning of “strong” currency and “weak” currency. What are...
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...Chapter One Business Now: Change Is the Only Constant Review Questions it 1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? Financial Institutions got a bailout By President Obama in 2009, Mortgage values dropped, financial institutions begin to Feel the pressure especially firms such as Bear Stearns that specialized in trading Mortgage backed securities. There was $61.7bn in losses with AIG, strong economy Out of more jobs can accelerate the next decade, there be a budget deficit. AIG got A $180bn bailout; while Bank of America got $45bn as well as JP Morgan Chase $25bn, Goldman Sachs got $10bn. The Rapid pace of change in business is the Internet, Cellphones and exposure on television. 2. What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit? People risk their Time, money and other resources to start and manage a business. But, They also Give hope to a better workforce. A lot of people; who are unemployed such as myself Right now will find jobs that are more flexible and challenging, working for big and Small business owners. 3. When did American business begin to concentrate on customer needs? Why? Value of Certain Products begin to go up. High Gas Prices from $1.25 to $4.25, The Cost of a loaf Of Bread is $2.79, the cost of dishwashing liquid about a $1.00, Purchase...
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...Chapter Three The World Marketplace: Business without Borders Review Questions 1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity? China, India and Brazil are some of the largest growing global businesses. These comes from many different factors; GDP growth and population are two major causes. China has the largest populations in the world along with the fastest growing GDP percentages. Brazil’s population is not as large but does has a high GDP percentage, and also a high Dollar Pre Capital GDP. 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? When their country of origin has naturally cheap raw materials or if their currency has been undervalued, they are naturally cheaper than their competitors from other countries. This gives them better margins and they thrive. 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? The money being spent to buy things from other countries is much larger than the amount of money where other countries are buying from the U.S. The deficit means we are buying more than we sell. To make up for the difference people and governments from other countries buy U.S. investments assets. 4. Explain the meaning of “strong”...
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...Chapter Three The World Marketplace: Business without Borders Review Questions 1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity? 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? 4. Explain the meaning of “strong” currency and “weak” currency. What are the advantages and disadvantages of each? 5. Why is outsourcing such an attractive way for firms to tap into foreign markets? What are the risks of foreign outsourcing? 6. Outline the potential pros and cons of the 3 key strategies for developing foreign markets: exporting, licensing and franchising, and direct investment. 7. Explain how countertrading works. What are the benefits and drawbacks for both parties that engage in countertrading? 8. What are the key elements of sociocultural barriers to trade? How can companies overcome these barriers? 9. How has NAFTA impacted the U.S.? Overall, do you believe that it was a positive move for the U.S.? Why or why not? 10. What is the overarching goal of the European Union? What role has been played by the introduction of the euro...
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...Chapter Three The World Marketplace: Business without Borders Case Connection China in Africa: A Big Step Forward, or a Bigger Step Backward? Entering an untapped international market can strengthen a business tremendously—but what if the costs outweigh the benefits for the market itself? China has long been an important player on the global stage, but recent advances in manufacturing, natural resources, and energy production have catapulted the expansive country to the forefront of international trade. Currently the world’s fastest growing major economy, China is set to eclipse the United States as the world’s largest economy by 2016. Among various domestic and international plays, one of China’s most fascinating uses of its newfound economic might is a considerable interest—and investment—in the continent of Africa. As its economy grew throughout the 2000s, China began establishing oil and mining firms across Africa. In return for the cooperation of African governments, China built new roads, bridges, and other varieties of desperately needed infrastructure. The economic powerhouse’s inroads into the African market quickly widened, and so did the scope of its investments. For every new mining and drilling operation, China built new governmental buildings, sports stadiums and housing complexes. China’s most prominent declaration of its intent to strengthen ties with Africa, however, was the construction of the $200 million African Union building in Addis Ababa...
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...highly successful home improvement model, the opportunities in the Asia market provide a unique untapped region. In Korea, recent political changes have opened its economy to foreign investors and businesses. Korea’s strong economic growth provides Lowe’s with the ideal situation of opening up stores before their competitors. Based on research I conducted, this assessment considers the potential of expanding Lowe’s into the Korean market. With any major investment, it is important to consider the monetary and non-monetary aspects including gaining an understanding of the culture, the ideal management approach, past and future trends, along with political roadblocks. In this paper, the following information provides a roadmap to the decision-making process. First, an assessment of the Lowe’s vision, mission, and promise are discussed and compared to the similarities and differences within Korea. Then, an analysis considers Korean trends that support the expansion of Lowe’s. Next, a culture assessment of Lowe’s base country (USA) is compared against Korea including management styles to consider for the local corporate office and stores. Lastly, a communication strategy is discussed based on the cultural assessment and offers best practices for the expansion of Lowe’s into Korea. This paper is intended to assist Lowe’s senior managers begin an assessment of expansion into the Asian market via Korea by highlighting key factors necessary for success. Company Overview ...
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... THE GLOBAL ECONOMIC ENVIRONMENT SUMMARY A. The economic environment is a major determinant of global market potential and opportunity. In today’s global economy, capital movements are the driving force, production is uncoupled from employment, and capitalism has vanquished communism. Based on patterns of resource allocation and ownership, the world's economies can be categorized as market capitalism, centrally-planned capitalism, centrally-planned socialism, and market socialism. The final years of the twentieth century were marked by transitions toward market capitalism in many countries that had been centrally controlled. However, great disparity still exists among the nations of the world in terms of economic freedom. B. Countries can be categorized in terms of their stage of economic development: low income, lower middle income, upper middle income, and high income. Gross domestic product (GDP) and gross national income (GNI) are commonly used measures of economic development. The 50 poorest countries in the low-income category are sometimes referred to as least-developed countries (LDCs). Upper middle-income countries with high growth are often called newly industrializing economies (NIEs). Several of the world’s economies are notable for their fast growth; the BRIC nations include Brazil, Russia, India, and China. The Group of Seven (G7), Group of Eight (G-8), and Organization for Economic Cooperation and Development (OECD) represent efforts by...
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...into question their business tactics and pricing strategies. While reconsidering marketing practices may make good sense, you should not significantly change your pricing. An untimely price reduction can cause great financial stress on a company, sometimes driving them into bankruptcy. When in doubt, don’t turn to price reduction. Cutting prices with the hope that you will attract more business is a surefire way to reduce profitability. Then what is the solution? Conduct a Business Analysis That will help you to develop a clear image of how your business is working, considering the sum of all the constituent parts. After that, assess how your business has been developing and acknowledge areas of possible improvement. Track the success of your improvements over time, adjusting the changes so that they optimize the efficiency of your overall goal. In such a competitive business climate, making just the right changes is crucial to your success. Finally, make certain that your pricing matches the value of your services—not just your cost in providing them. If that means increasing prices, do it. Refine your Marketing The solution to surviving a recession isn’t cutting prices but smarter marketing to your target customers. Determine who you best customers are and research the best way to market your services to them. The most successful companies are the ones that can take advantage of a recession to enlarge their market exposure and attract more business. Pricing Consider...
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...been in the entertainment business for more than 80 years and is well recognized around the world as one that delivers an exceptional entertainment experience. Walt Disney Company strengths can be grouped in three main categories: 1) diversified distribution channels, 2) strong brand portfolio, and 3) financial strength. Despite Walt Disney’s success, the company has some declining segments in their domestic business. In addition, Disney’s biggest challenge in creating theme parks and resorts abroad is their inability to tailor the attractions to the local market while maintaining Disney’s brand image. In the past, international theme park implementations, Disney had failed to adapt their strategies to the local market. Therefore, Disney’s weaknesses can also be also grouped in three categories: 1) declining segments, 2) difficulty adapting to other cultures, and 3) weak managerial skills in terms of international operations. Diversified Distribution Channels Disney has a strong diversified distribution channel. The company operates by four strategic business units (SBU): 1) Media Networks and Broadcasting, 2) Parks and Resorts, 3) Studio Entertainment, and 4) Disney Consumer Products (Banton, 2007, p.31). The Media Network segment comprises of all broadcast television network, television production and distribution operations, television stations, cable networks, broadcast radio, publishing and digital operations (“Fiscal Year 2010,” 2011, p.1). Some of Disney’s main media...
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...Chapter 2: Economics: The Framework for Business 1. How does economics relate to business? Can an understanding of economics help business people succeed? If so how? Economics relates to business because it teaches business people how to make choices that can get their business the most revenue with the least amount of cost. The understanding of economics can help business people succeed, economics can teach you things like marginal cost and revenues and this is essential to an type of business. Economics can teach you statistics that if used properly can provide you with an upper hand against competition. 2. Compare and contrast microeconomics and macroeconomics. How do the 2 approaches interrelate? Use a specific example to explain. Macroeconomics and Microeconomics are both dealing with economics but indifferent levels, Macroeconomics is the study of a country's overall economic issues and Microeconomics deals with economics on an individual consumer,families and individual businesses. They can affect how much you can purchase for your family and what is available for you to purchase for your family. 3. What are the fundamental elements of the free market economic system? How can businesses thrive within this system? 1. The rights to own a business and keep after-tax profits 2. The right to private property 3. The right to free choice 4. The right to fair competition Free Market economies allows businesses to thrive...
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...than previous decades. As company grows, their share prices increase and the shareholders of these firms gain a lot from the increasing prices. In India people are realising that equity has potential in ploughing back the returns as compared to the other investment avenues, however, equity valuation should be done in order to receive higher and continuous gains. Equity valuation begins with analysis of the sector where a person wants to invest. If the sector looks positive than evaluation of all the companies in that sector should be done in order to decide upon the investment. The objective of this report is to analyse the credibility of an investment into Reliance Communications Limited. In order to achieve this we will focus upon the organisation’s strategic and financial information. A SWOT analysis will evaluate the potential strengths, weaknesses, opportunities and threats facing the business and valuation analysis will tell about the profitability of the company. The methods used for the valuation analysis are: Fundamental Analysis and Technical Analysis. FUNDAMENTAL ANALYSIS: Fundamental analysis is a technique that attempts to determine a securities value by focusing on underlying factors that affect a company’s actual business and its future prospects. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy andindustry conditions) and company-specific factors (like financial condition andmanagement)...
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...BUSINESS ENVIRONMENT Y/601/0546 MARKET ENVIRONMENT AND ORGANIZATIONAL BEHAVIOUR MOHAMED ABOOBUCKER JAZEER AHAMED Introduction Business environment is composed of two words ‘Business’ and ‘Environment’. In economic sense ‘Business’ means human activities like production, purchase or extraction or sales of products or services that are performed to earn money. Meanwhile ‘Environment’ means the aspect of surroundings. Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization. Business environment consists of two components: external environment and internal environment. Internal environment includes of 5 M’s like management, money, machinery, material and man. On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors. LO1 1.1 ------------------------------------------------- Different Types of Organizations Organizations A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems they affect and are affected by their environment. Read more: http://www...
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...catalysts for change in the world of business; individuals who recognize opportunities where others see chaos, contradiction, or confusion. They have been compared to Olympic athletes challenging themselves to break new barriers, to longdistance runners dealing with the agony of the miles, to symphony orchestra conductors who balance the different skills and sounds into a cohesive whole, or to top-gun pilots who continually push the envelope of speed and daring. The U.S. economy has been revitalized because of the efforts of entrepreneurs, and the world has turned now to free enterprise as a model for economic development. The passion and drive of entrepreneurs move the world of business forward as they challenge the unknown and continuously create the future (Kuratko, 2002). Several methods have been used to measure the impact of entrepreneurial ventures on the economy—for example, efforts to start a firm (which may not be successful), incorporation of a firm (which may never go into business), changes in net tax returns filed (reflecting new filings minus filings no longer received), and a substantial amount of full-time and part-time self-employment. According to the Small Business Administration, 672,000 new businesses were created in 2005; the largest in US history (even 12% higher than the infamous “dotcom” explosion). More significantly, 74 million Americans stated they plan to start a new venture within the next five years while an additional...
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...Australia Hypothetical Incorporated MBA AF 626 Fall 2011 International Financial Management Professor XX XX XX XX XX Table of Contents PART I – Analysis: Australia vs. China A. Country Analysis 1. Economic Environment 3 2. Social Environment 10 3. Political Environment 12 B. Industry Analysis 1. Aluminum Industry in Australia 17 2. Airline Industry in China 18 PART II-Capital Budget Analysis 1. Weighted Average Cost of Capital 19 2. Net Present Value 20 3. Scenario Analysis 21 PART III – Conclusion: Investment Decision 23 References 24 Appendixes 26 PART I – Analysis: Australia vs. China A. Country Analysis I. Economic Environment Australia Australia is a market oriented financial system which includes the world’s 13th largest economy and the 9th highest per capita Gross Domestic Product (GDP), with almost two consecutive decades of growth and the unemployment rate falling to a generational low. As a result of nearly three decades of structural and policy reforms, Australian’s economy has proven to be a competitive player in the increasingly integrated global markets. In terms of country risk, Australia’s favorable attitude towards private enterprise and its well-protected property rights incent growth and propagate stability conveying comfort to international investors that its...
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