...business marketplace often demands that organizations merge with each other to remain competitive and increase revenue, profits and market share. Others may be looking to consolidate their operations to achieve economies of scale and standardization of processes. Mergers and acquisitions occur when a company buys, sells, or combines with another company within the same country or across borders (Luthans & Doh, 2009). Government regulation is constantly present in our lives. This paper is a continuation from assignment two and will look at how government regulations affect expansion and merger in the retail industry. “Mergers can be competitive strategies, or they can be attempts to create firms large enough to exercise market power” (Michaels, 2011). Successful mergers are a combination of four critical components: culture, business practices, technology, and time. Bringing these elements together requires careful planning and coordination. The longer it takes the more costly it will be, and the potential for failure will be greatly increased. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy. Government regulation is needed in the retail industry to make sure that the public’s interests are...
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...Outline a plan that managers in the low-calories, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic. Provide a rationale for your response. To outline a plan that managers in the low-calories, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic would detail a pricing strategy that would have no impact on the way consumers perceive and buy these products. Generally we see such demand only in situations in which the good or services are indispensable and the consumers cannot do without those, but not in the case of the microwaveable food products. The demand function for low calorie microwaveable food largely depends on the price of the product, its relative (substitute) product, advertisement overheads and consumer income. From the demand function and the elasticity considered, it is established that the market for the low calorie microwaveable foodstuff fit in to a market of monopolistic competitive manner. A monopolistic competitive is distinguished by a reasonable number of buyers and sellers. As a result people can change to another brand if a specific brand charges a soaring price. However monopolistic competitive suppliers carry out product differentiation. Profit (NP) = Total Revenue (TR) Total Cost...
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...assignments, we can see that the demand for the low calorie microwavable product is inelastic in nature. Now, in order to keep their products as inelastic as possible, the firm will try to differentiate its product from other firms’ products. If their product is different from others then the consumers will not find a substitute for that product easily. That will make the demand for the corresponding product inelastic in nature.We all know that the greater the degree of product differentiation, the greater the market power. Therefore, it is advisable for the organization to perform active product differentiation to maximize its profits. Government intervention can affect the production process. Suppose a product is beneficial for the society. Then the government will encourage the production of the same. In that case, the government might provide subsidy. This will increase the production of the...
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...Chapter 7 Government Intervention in International Business GOVERNMENT INTERVENTION 1. In a short essay, describe two methods of government intervention. What is the purpose of government intervention in international business? Answer Government intervention is often manifested as protectionism. Protectionism refers to national economic policies designed to restrict free trade and protect domestic industries from foreign competition. Protectionism often leads to two types of intervention: tariffs and nontariff barriers. A tariff is a tax imposed by government on imported products, effectively increasing cost of acquisition for the customer. A nontariff trade barrier, such as a quota, is a government policy, regulation, or procedure that impedes trade through means other than explicit tariffs. Governments intervene in trade and investment to achieve political, social, or economic objectives. Barriers are often applied to benefit specific interest groups, such as domestic firms, industries, and labor unions. A key rationale is to create jobs by protecting industries from foreign competition. Governments may also intervene to support home-grown industries or firms. In various ways, government intervention alters the competitive positions of companies and industries, and the status of citizens. (pp. 195-196; concept; Learning Objective 1; moderate; AACSB: Analytic Skills) RATIONALE FOR GOVERNMENT INTERVENTION 2. In a short essay, explain the four main motives for...
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...of your company to identify areas with the need for change. 2 3-4 Task 2 – Discuss any three models of change and evaluate their relevance of these models to contemporary organizations in Myanmar economy. Assess the value of using strategic intervention techniques in organizations. Determine the efficacy of applying these models to your organization. 5-7 Task 3 – Develop a change management strategy for your organization that involves stakeholders and a strategy for managing resistance to change. Formulate and evaluate a system to involve stakeholders in the planning of change. 8-9 Task 4 – Create an appropriate model for change in your organization and draw a plan to implement and develop measures to monitor it. 10-11 References 1|Page Delta Net Media Company is one of the largest and most innovative Media (Paid Satellite TV Network) & Internet Service Provider Company in Myanmar. Delta Net offer consumers in two different categories, DTH – Direct to Home satellite television network and MPS – Multi Play Services which adds satellite broadband internet to television network service. Delta Net is providing these services nationwide in Myanmar. It was launched in November 2010 and started with total 48 channels including sports, entertainment, news, movies, music so on and later expands to 83 channels as of 2013 and keep expanding the network to provide varieties of channels for consumers to be entertained or infotained. In addition, the company is currently...
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...EXPANSION AND MERGER 1 1. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy. The consolidation of U.S. industry into increasingly powerful corporations spurred government intervention to protect small businesses and consumers. In 1890, Congress enacted the Sherman Antitrust Act, a law designed to restore competition and free enterprise by breaking up monopolies. In 1906, it passed laws to ensure that food and drugs were correctly labeled and that meat was inspected before being sold. In 1913, the government established a new federal banking system, the Federal Reserve, to regulate the nation's money supply and to place some controls on banking activities. The largest changes in the government's role occurred during the "New Deal," President Franklin D. Roosevelt's response to the Great Depression. During this period in the 1930s, the United States endured the worst business crisis and the highest rate of unemployment in its history. Many Americans concluded that unfettered capitalism had failed. So they looked to government to ease hardships and reduce what appeared to be self-destructive competition. Roosevelt and the Congress enacted a host of new laws that gave government the power to intervene in the economy. Among other things, these laws regulated sales of stock, recognized the right of workers to form unions, set rules for wages and hours, provided cash benefits to the unemployed and retirement...
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...in the community through economization ethics. This however was based on utilization of the available resources though efficiency use and mobilization. The research paper critically analyses on the emerging needs for corporations to have a strong commitment to corporate responsibility and why companies need to be community oriented. Further considerations are based on the programs undertaken by the federal to ensure the policies of corporate social responsibilities are made a meaningful to the society. Shinn (2002) in his paper, towards incorporating the corporate responsibilities in an organization, uses relational theory. It has the originality of linkage between the firm and the environment in which the firm operates. This forms the main objectivity of incorporating CSR in the corporations. Incorporation of the CSR within the firm requires the management of such organizations to be able to integrate business and the society (Porter and Mark 2006). To make this advancement, we must first create a root or the dipper understanding the expected effects that will results between the two areas- the organization and the society. While doing this, more of the anchoring and strategies of the...
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...751 Portland, OR 97207-0751 Phone: 503-725-4282 Fax: 503-725-5950 The effects of costs associated with terminal points of truck freight tours, called terminal costs, are analyzed. An overview of current U.S. government and public policies, business practices and transportation infrastructure issues affecting Less Than Truckload (LTL) shipping networks is presented. A qualitative model of supply chain interactions is constructed followed by a mathematical analysis of specific areas of interest where costs are sensitive to policy or operational changes. CE 553: Freight Transport and Logistics Dr. Miguel A. Figliozzi December 10th, 2008 1. Introduction Traffic congestion and delay are becoming increasingly significant problems for the U.S. freight trucking industry. While freight transportation has continued to grow steadily, the capital spending and construction of freeways and major highways has remained mostly stagnant since the mid-1970s when the interstate freeway system reached completion. Much attention has thus been paid to methods of most efficiently using the road space available, particularly in dense urban areas, with lane tolling, freeway ramp metering and other measures being utilized. Major freight companies also pay close attention to delivery vehicle routing in congested areas to maximize shipments and minimize dwelling time and stops. The costs of delays to freight vehicles are often caused by another component besides...
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...annually in sales. Target moved to no. 4 with 48 billion in sales following the merger of Kmart and Sears to Sears Holding company (SHC). SHC is currently no. 3 in the retail industry with a combined 55 Billion (Rahman-Eisner 6). If the retailer industry wanted to expand from the 20% of economic establishments to a higher percentage, there are a couple of options that could take place. One would be that two or more of the top super-powers would have to come together in a merger. The less drastic measure would be for one of the companies to further expand their operations. According to Ftc.gov, in order to compete in modern markets, competitors sometimes need to collaborate. It also states that competitive forces are driving firms toward complex collaborations to achieve goals such as expanding into foreign markets, funding expensive innovation efforts, and lowering production and other costs. Government regulation plays a role in the economies of businesses using the Anti-trust Law. With origins around 1890, the Anti-trust laws are intended to promote free competition in the marketplace by outlawing monopolies. A monopoly occurs when one group has exclusive control of the means of producing or selling a commodity or service (Transactions and Strategies, 2011, p 168). To explore the world of merging retailers in our industry, we will look at government regulation in the retail industry and why...
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...organization effectiveness and health through planned interventions in the organization’s “processes,” using behavioral science knowledge.” (Cummings & Worley, 2008). In other words, it is a systemwide application and transfer of behavioral science knowledge to the planned development, improvement, and reinforcement of the strategies, structures, and processes that lead to organization effectiveness. Organizational Development theories can be differentiated into two main categories: Change process theory i.e. How does change take place? and Implementation Theory i.e. How can change strategies be put into practice? Change process theory helps the managers to learn how organizations improve and change. According to Lewin, there are three distinct and vital stages of change. The first one is ‘unfreezing’, a reduction in the strength of old values, attitudes or behaviors. The second one is ‘moving’, a process of change in thoughts, feeling, behavior or all three, that is in some way more liberating or more productive. And the last one is ‘refreezing’, the stabilization of change at a new stage of equilibrium. Without refreezing it is easy to backslide into the old ways. Implementation theory concerned with how specific intervention strategies are designed and carried out. “An intervention is a set of sequenced and planned actions or events intended to help the organization increase its effectiveness.” (Cummings & Worley, 2008). Interventions are aimed at helping the group become better...
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... Classical theories of international trade propose that comparative advantage resides in the factor endowments that a country may be fortunate enough to inherit. Factor endowments include land, natural resources, labor, and the size of the local population. Michael E. Porter argued that a nation can create new advanced factor endowments such as skilled labor, a strong technology and knowledge base, government support, and culture. Porter used a diamond shaped diagram as the basis of a framework to illustrate the determinants of national advantage. This diamond represents the national playing field that countries establish for their industries. The complete Porter’s Diamond system (Porter, 1998, pg 127) The individual points on the diamond and the diamond as a whole affect four ingredients that lead to a national comparative advantage. These ingredients are: The availability of resources and skills, Information that firms use to decide which opportunities to pursue with those resources and skills, The goals of individuals in companies, The pressure on companies to innovate and invest. The points of the diamond are described as follows: I. Factor Conditions A country creates its own important factors such as skilled resources and technological base. The stock of factors at a given time is less important than the extent that they are upgraded and deployed. Local disadvantages in factors of production force innovation. Adverse conditions such as labor...
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...|HR587 Managing Organizational Change | K Milburn 29 May 2011 |This document brings into picture the change that took place in McDonalds | Table of Contents Executive Summary Assessment/Diagnosis Analysis of the Change Strategy Results/Outcomes Evaluation of the Effort Discussion and Conclusion Works Cited Appendix Introduction: ‘You can change without improving, but you cannot improve without changing!’ In today’s fast growing and highly competitive environment everyone wants to stay ahead and always remain connected to the whole world. The last two decades have seen many inventions that are really path breaking and changed our lifestyles in more than one or another way. This is possible only because of the changes and innovation in the organization. Companies across a range of industries are confronting fundamental change. The advent of 3G technology poses...
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...in 1956, is the one and only public sector insurance company in India. There were many small insurance companies and provident societies worked at that time, merged together to form LIC of India. It has got wide and huge network of Insurance agents and distributors which made them popular amongst the most remote areas of India. As it belongs to public sector, it is the most trusted insurance company in India. Since 2001, LIC of India was the monopoly power in Insurance industry on India. In 2001, private insurance companies are allowed to enter the insurance sector in India. But LIC tried to maintain its market leadership through renewing and transforming its strategy. Its huge presence in both urban and rural markets is their major core competency. The products if LIC are very simple and customer friendly, so that even illiterate people could understand the policy through explaining. Its products are mainly concentrating on all the needs and demands of the customers such as, protection, life cover, savings, investments, endowment plans, women plans, child plans, micro- insurance plans etc. The major subsidiaries are LIC housing finance, LIC Nepal, LIC Lanka, LIC International, BSC etc. (www.myinsuranceclub.com). The intervention of more than 20 private insurance companies such as Bajaj Allianz, ICICI Prudential, HDFC Standard Life, MetLife, etc in to the frame, had affected the market and revenue of LIC Ltd. The new companies were offering better products with better returns....
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...|HR587 Managing Organizational Change | K Milburn 29 May 2011 |This document brings into picture the change that took place in McDonalds | Table of Contents Executive Summary Assessment/Diagnosis Analysis of the Change Strategy Results/Outcomes Evaluation of the Effort Discussion and Conclusion Works Cited Appendix Introduction: ‘You can change without improving, but you cannot improve without changing!’ In today’s fast growing and highly competitive environment everyone wants to stay ahead and always remain connected to the whole world. The last two decades have seen many inventions that are really path breaking and changed our lifestyles in more than one or another way. This is possible only because of the changes and innovation in the organization. Companies across a range of industries are confronting fundamental change. The advent of 3G technology poses...
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...There are evidences demonstrate that the state has played an influential role in the employment relationship for a long time. This raise questions about should intervene employment relationship or leave it entirely to employers and employees. State is all government organizations with the currently selected government, which are carrying out government policies (Nikola 2009, p. 41). In my option, the state is a necessary player within the employment relationship. This essay will illustrate why the state should take part in the employment relationship from four aspects. First is the state can protect employees by applying policies into the workplace. Second, the employers can receive benefit when the state making rules. Third, the state solves disputes between employers and employees as intercede. Finally, employers and employees can avoid potential dispute when state intervene. First of all, the state protects employees’ right by implement various policies into workplace. From the point of employer’s view, employer wants the company to running in maximum productivity and efficiency by offering as lower and simpler as possible to employee’s salary working condition. In contract, employees are willing to receive higher reward and better working condition according to their capacity. However, in most cases, employees do not receive equal treatment due to they have relative less bargaining power than employers within employment relations. Basic on this situation, Australian policymaker...
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