...sculptures and installations. Donovan, whose work is composed of everyday objects like pencils and toothpicks, has explained, "It's all about perceiving this material from a distance and close up and how the light interacts with it." View more of the artist's work at pacegaUery.com. S R T G IS STUCK. For too long the business world an inflection point. Thefieldof strategy needs to acT AE Y has been obsessed with the notion of building a sus- knowledge what a multitude of practitioners already tainable competitive advantage. That idea is at the know: Sustainable competitive advantage is now the core of most strategy textbooks; it forms the basis exception, not the rule. Transient advantage is the of Warren Buffett's investment strategy; it's central new normal. to the success of companies on the "most admired" lists. I'm not arguing that it's a bad idea—obviously, The Anatomy of a Transient Advantage it's marvelous to compete in a way that others can't Any competitive advantage—whether it lasts two imitate. And even today there are companies that seasons or two decades—goes through the same create a strong position and defend it for extended...
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...Explain what is meant by sustainable competitive advantage..(SCA or just CA) A CA can be described as ‘an advantage a firm has over a competitor or over a group of competitors within the same market or industry’ (Kay 1993). It must be however, a relative advantage, which is to say that it should be compared to the competition. For example, Apple’s brand image is an advantage, because the logo is instantly recognisable, and could call itself more recognisable than competitors such as Blackberry or Nokia. Jack Welch (formerly of GE) said that ‘if you don’t have a CA, then don’t compete.’ This quote highlights the importance of a CA in business terms, and shows how it can be the difference between surviving in a market, or dominating in a market. The development of the CA is interesting; and it can be split into three main stages. Initially, the development of a CA was thought to be down to leadership; if a firm had a successful leader, then they would make successful decisions that would benefit the firm. However, in 1980, Michael Porter developed a theory which toppled this. Using his ‘5 Forces Model’, Porter believed that a firm could create a CA through differentiation (thus nullifying the threat of substitutes and the bargaining power of consumers) and/or through low costs (nullifying the threat of new entrants and suppliers.) Porter believed that by analysing the external environment, a firm could pick a good industry to enter and succeed in. This strategy in...
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...I Title The Advantage And Disadvantage Of Technology On Society II Objectives III Introduction IV Body Today’s society is heavily influenced and affected by technology. My paper will explain and highlight many advantages and disadvantages of technology on society. It will discuss some ways it can hinder reputations and how private matters can become public property because of technology. My paper will also reveal how technology can bring people closer together, although many people may beg to differ. Today’s society is driven and greatly influenced by technology. This can be a beneficial fact, and it can also be detrimental and yield major problems. Whether one is using a digital camera in order to snap a photo of a precious moment, or whether one is sneaking and videotaping an embarrassing video that will last forever, these are components of technology that effect society because it effects people. It is in the eye of the beholder of whether technology has more or less advantages than disadvantages on society. My paper will discuss some advantages and disadvantages of technology on society. There are many advantages of technology. Technology allows people to email, text, talk on the telephone, mow the lawn, vacuum carpets, blend food, straighten hair, add numbers, and the beneficial list goes on. Without technology, people would not be able to keep in touch with loved ones as easily; they would have to physically walk and talk face-to-face because cars would not...
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...The Advantage And Disadvantage Of Technology On Society Advantages and Disadvantages of Technology on Society Annie Martin Professor Marin CS 105 March 10, 2010 Abstract Today’s society is heavily influenced and affected by technology. My paper will explain and highlight many advantages and disadvantages of technology on society. It will discuss some ways it can hinder reputations and how private matters can become public property because of technology. My paper will also reveal how technology can bring people closer together, although many people may beg to differ. Today’s society is driven and greatly influenced by technology. This can be a beneficial fact, and it can also be detrimental and yield major problems. Whether one is using a digital camera in order to snap a photo of a precious moment, or whether one is sneaking and videotaping an embarrassing video that will last forever, these are components of technology that effect society because it effects people. It is in the eye of the beholder of whether technology has more or less advantages than disadvantages on society. My paper will discuss some advantages and disadvantages of technology on society. There are many advantages of technology. Technology allows people to email, text, talk on the telephone, mow the lawn, vacuum carpets, blend food, straighten hair, add numbers, and the beneficial list goes on. Without technology, people would not be able to keep in touch with loved ones as...
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...Basically blab la is a business resolution adopted by the firms to determine if it is financial sound to produce the item or to purchase the item Letters of credit are also used on financial trade to provide the beneficiary with the promise of pay or as a contract for a sale. Cornelio reayna Professor Patrick coolt Principles of Management AMM 103 October 16, 2005 Absolute Advantage and Comparative Advantage According to the classic model of international trade introduced by David Ricardo (19th-century English economist) to explain the pattern and the gains from trade in terms of comparative advantage, it assumes a perfect competition and a single factor of production, labor, with constant requirements of labor per unit of output that differ across countries. The basis for trade in the Ricardian model is the differences in technology between countries. As a result, there are two different ways to describe technology differences: the first method, called absolute advantage, is the way most people understand technology differences; and the second method, called comparative advantage,...
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...Absolute Advantage Absolute advantage is a situation where a country can produce a product more efficient than any country in producing it. It also refer to ability to produce a particular good at a lower absolute cost than another. That’s mean a country that have an absolute advantage is a country that can produce a product that are due to some combination. The determinant of absolute advantage for a country is such as favorable climate, good soils,and accumulated expertise. For example, Bangladesh has an absolute advantage in textile industries. The most important factor is Bangladesh has a very low labor costs in their country and Bangladesh also has a vibrant network of supporting industries that supply inputs to its garment manufacturers. According to Adam Smith, the country should specialize in the production of goods that have an absolute advantage. Then the country can trade their product to the other countries. For example, France can produce 2 unit wine in a hour, meanwhile Japan only can produce 1 unit wine in a hour, but Japan can produce 5 unit clock radios in one hour, meanwhile France only can produce 3 unit clock radios in one hour. That means France have an absolute advantage in production of wine compare with Japan. So, France should specialize in production of wine and buy clock radios from Japan. Japan should specialize in production of clock radios and buy wine from france. Comparative advantage From economic perception, comparative advantage is refer...
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...When asked by mathematician Stanislaw Ulam whether he could name an idea in economics that was both universally true and not obvious, economistPaul Samuelson’s example was the principle of comparative advantage. That principle was derived byDavid Ricardo in his 1817 book, Principles of Political Economy and Taxation. Ricardo’s result, which still holds up today, is that what matters is not absolute production ability but ability in producing one good relative to another. Reckoned in physical output—for example, bunches of bananas produced per day—a producer’s efficiency at growing bananas depends on the amounts of other goods and services he sacrifices by producing bananas (instead of other goods and services) compared with the amounts of other goods and services sacrificed by others who do, or who might, grow bananas. Here is a straightforward example. Ann and Bob are the only two people on an island. They use only two goods: bananas and fish. (The assumption of two persons and two goods is made only to make the example as clear as possible; it is not essential to the outcome. The same holds for all subsequent assumptions that I make using this example.) If Ann spends all of her working time gathering bananas, she gathers one hundred bunches per month but catches no fish. If, instead, she spends all of her working time fishing, she catches two hundred fish per month and gathers no bananas. If she divides her work time evenly between these two tasks, each month she gathers...
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...iess_Batch4_A-L 5/11/07 11:14 AM Page 1 A–L ABSOLUTE AND COMPARATIVE ADVANTAGE During the seventeenth and eighteenth centuries the dominant economic philosophy was mercantilism, which advocated severe restrictions on import and aggressive efforts to increase export. The resulting export surplus was supposed to enrich the nation through the inflow of precious metals. Adam Smith (1776), who is regarded as the father of modern economics, countered mercantilist ideas by developing the concept of absolute advantage. He argued that it was impossible for all nations to become rich simultaneously by following mercantilist prescriptions because the export of one nation is another nation’s import. However, all nations would gain simultaneously if they practiced free trade and specialized in accordance with their absolute advantage. Table I, illustrating Smith’s concept of absolute advantage, shows quantities of wheat and cloth produced by one hour’s work in two countries, the United States and the United Kingdom. Division of labor and specialization occupy a central place in Smith’s writing. Table I indicates what the international division of labor should be, as the United States has an absolute advantage in wheat and the U.K. has an absolute advantage in cloth. Smith’s absolute advantage is determined by a simple comparison of labor productivities across countries. Smith’s theory of absolute advantage predicts that the United States will produce only wheat (W) and the U.K. will...
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...I would divide the elements in the policies of India that were there against Comparative advantage and international trade into three major groups: extensive bureaucratic controls over production, investment and trade; inward-looking trade and restricted foreign investment policies; and conventional confines of public utilities and infrastructure. The former two adversely affected the private sector’s efficiency. The last, with the inefficient functioning of public sector enterprises, impaired additionally the public sector enterprises’ contribution to the economy. Encouraged joint ventures with multinational firms were a move which would have given India a comparative advantage and boosted its international trade. India embraced the path of liberalization in the early nineties. A gradual opening of the economy and withdrawal of trade barriers were the natural offshoots of the policy option hitherto chosen. With the withering away of ‘protectionist’ policies, the trade pattern of India is likely to march in the direction of its comparative advantage. India’s comparative advantage is in labor and resource-intensive items such as textile, yarn and apparel or in technology and science based manufactures such as chemicals, minerals and metal manufactures. India is a major hub for polishing and cutting of diamonds. Low labor costs and a huge workforce have enabled the industry to thrive. Cheap labor costs in India plays a crucial role in protecting the cost benefits of foreign...
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...INTRODUCTION The team will be discussing the advantages and limitation of international trade and identify the four key points emphasized in the simulation while looking at the absolute comparative advantages and describing the influences affecting foreign exchange rates. The team will debate issues surrounding international trade and what were the concept summary results for the assessment while evaluating the effects of government policy on economic behavior. Here is my part for the team paper (List at least one advantage and one limitation of International Trade as identified in the simulation) There are benefits, and limitations for both countries that could happen, but international trade put into place control on the quantity and quality. There are certain factors that affect international trade like government policies, and foreign exchange rates. An important aspect to economy is international trading because trading allows countries an opportunity to receive goods and services not available in their countries. If one country specialties in agriculture than trading with a country that specializes in that service will benefit. In this simulation one advantage is a variety of goods gained for each country. Another advantage is a pool of new consumer products added to the economy with consumers as potential target that manufacturer’s new markets. Another advantage is there are many international trade and few limitations. Another limitation...
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...This paper will go over the theories of absolute and comparative advantage and will also go over the principal aspects of the Bretton Woods agreement and following its demise the decision of the EU (European Union) countries to create a single currency. Let me remind you of the handouts from The Economist (trade Winds and Comparatively Speaking) and the material from Daniels and Radebaugh. I want us today to look carefully at the assumptions underpinning the theory of specialisation [Daniels and Radebaugh pp 176 - 177]. A handout has already been provided. Full employment is one of the central assumptions for these theories of trade to apply. In the world being described by either Smith or Ricardo unemployment as such was probably an unknown phenomenon. Society was largely agricultural and highly stable. People had to work! They had to be employed. And doubtless wage rates adjusted to the point where there was no unemployment as we know it today. But in the world of today the backdrop is very different. How do we deal with that where wage rates are not downwardly adjustable? We have looked at the specialisation argument. This can be seen very differently depending where you are in the argument. Some analysts have throughout history argued that the notion of specialisation into one particular pattern of output ‘fixes’ that pattern. This may very well disadvantage one nation when compared with another. What about the ‘infant industries’ argument. How would you view...
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...ECO2023 DAVID RICARDO & THE COMARATIVE AND ABSOLUTE ADVANTAGE David Ricardo was one of those rare people who achieved both tremendous success and lasting fame. After his family disinherited him for marrying outside his Jewish faith, Ricardo made a fortune as a stockbroker and loan broker. When he died, his estate was worth more than $100 million in today’s dollars. At age twenty-seven, after reading Adam Smith’s The Wealth of Nations, Ricardo got excited about economics. He wrote his first economics article at age thirty-seven and then spent the following fourteen years—his last ones—as a professional economist. Ricardo first gained notice among economists over the “bullion controversy.” In 1809 he wrote that England’s inflation was the result of the Bank of England’s propensity to issue excess banknotes. In short, Ricardo was an early believer in the quantity theory of money, or what is known today as monetarism. In his Essay on the Influence of a Low Price of Corn on the Profits of Stock (1815), Ricardo articulated what came to be known as the law of diminishing marginal returns. One of the most famous laws of economics, it holds that as more and more resources are combined in production with a fixed resource—for example, as more labor and machinery are used on a fixed amount of land—the additions to output will diminish. Ricardo also opposed the protectionist Corn Laws, which restricted imports of wheat. In arguing for free trade, Ricardo formulated the idea of...
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...Smith and his work became known as “An Inquiry into the Nature and Causes of the Wealth of Nations”. Adam Smith began by disproving the mercantilistic notion of trade protectionism where exports were maximised in detriment of heavy restrictions on imports. According to Smith, international trade could in fact be beneficial to all participants if each country would specialise in the production of goods where it had an absolute advantage in terms of costs. By producing a good cheaper than everyone else and by importing others, a country could immensely gain from international trade. Although revolutionary, Smith’s theory of absolute advantages was not free from flaws. In fact if a country didn't have such advantage in producing a given good it wouldn't have access to trade, or in another words, trade wouldn't occur if country A couldn't be the most efficient in producing good B. In this context and in attempt to improve Smiths’ theory, David Ricardo a British political economist of Portuguese origin, introduced the theory of comparative advantages. In sum Ricardo argued that even if a country didn't have...
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...slide: What is their? Competetive advantage for AirAsia What is their competetive advantage? Load factor, cost per available seat mile, aircraft utilization, et cetera. 2-3 slides Sources of competetive advantage First mover advantage Being the first low cost carrier allows AA to capture a larger market share in South-East Asia which has 500 million people -> huge market. Fresh start, no “legacy” problems of older airlines, this allows them to build an optimal LCC-system from the ground up, they do not inherit old booking systems, unionized employees, old and fuel-consuming aircraft, high customer expectations, et cetera. This is a potential advantage, and it depended on the company leadership exploiting it -> which they did! The point is, they would not have gotten the same market share so quickly if they had established themselves in a saturated market such as north america or europe. Economies of scale through standardization and rationalization – “LCC advantages vs. Traditional airlines” Standardized aircraft fleet simplifies pilot training, maintenance, and facilitates quicker turnaround times and thus greater aircraft utilization. Also, no frills flights, direct sales, and the use of IT to maximize revenue (typical for LCCs) add to the bottom line. This is an advantage vis-a-vis traditional airlines more than an advantage vis-a-vis other LCCs. enthusiastic employees through incluse and open corporate culture. “LCC advantage vs. Other LCCs” LCCs can have...
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...“First-mover advantages” is defined as the benefits that accrue to firms that enter the market first and that later entrants do not enjoy. The opposite of first-mover advantages is called “late-mover advantages.” (Peng, 2011) First movers enjoy many benefits. For example, they gain advantage through proprietary technology. First movers may also make preemptive investments. Japanese MNE’s picked South-East Asian distributors and suppliers as new members of Keiretsu, but blocked all the late movers. It is also possible for the first movers to erect significant entry barriers for late entrants, such as high switching costs due to brand loyalty. Another great advantage of a first mover is that, they can avoid clash with dominant firms at home. Intense domestic competition may drive some non-dominant firms abroad to avoid clashing with dominant firms head-on in their home market. For example, Toyota was dominant in Japan. But Honda took the opportunity and entered American market ahead of Toyota. Finally, first movers may build precious relationships with key stakeholders such as customers and governments. Motorola entered in China in 1980 and has benefited from its lengthy presence in China. China adopted Motorola’s technology as its national paging standard, which resulted in blocking of other firms. Late movers also enjoy many benefits. First of all, late movers many be able to free ride on the huge pioneering investments of first movers. Second, first movers face greater...
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