...Economics Group Assignment With Individual Component Questions A, B & C EC161/EC282 Walter Heering Seminar Group K Louis Quinton Toby Redman Charlie Spall Question 1……………………………………………………………………………….3 Question 2…………………………………………………………………………….12 Question 3…………………………………………………………………………….23 Toby Redman – Student Number: 13820112 Seminar group K EC161/EC282: Economics coursework: Group assignment with individual component – Question A Table of Contents Introduction 4 Price Ceiling 4 Main Body 5 How It Effects Landlords 6 How It Effects Consumers 7 How It Creates A Black Market For The Good 8 Conclusion 10 References 11 Introduction Price Ceiling A price ceiling is a government imposed price control to make sure that a goods can not be sold for more than a certain price, they cap the price at a certain point rather than letting be sold at the equilibrium. When a price ceiling is set there is more demand in the market than the product being supplied. The government has created excess demand by driving down the price of the product. Taylor (2006) claims that in order for a price ceiling to work it must be set below the equilibrium price of a market. If this does not happen then the ceiling would not have an effect on the price of a good because it would still continue to operate at the current price. As shown on the graph above when the price ceiling is put into place the price shifts from P* to P1 this then lowers the quantity available to the...
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...Economic Efficiency Economic efficiency is when objectives of the individual, firm or government are attained by the combination of the various factors of production at a minimum cost. Efficiency can be measured in different forms; productive, allocative and X-efficiency. Productive Efficiency In evaluating the productive efficiency of a market, we are looking at the minimum cost derived as a result of producing or supplying a good. In the short term, efficiency is achieved when a unit of output is attained at the very base of the average cost curve as shown in Fig 1a below. FIG 1a Cost FIG 1b Cost Economic Efficiency in the long run MC AC LRAC C1 SRATC1 Economic Efficiency SRATC2 C In the short-term Ce 0 Q Output 0 Q1 Qe Output From Fig 1b above, the market productive efficiency level can be best measured in the long run. In the long run, the various short term output levels on the scale of production compared, reveals the most minimum cost as a result of producing a unit more of output. As shown in Fig 1b, the most efficient level of production is at CeQe on the...
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...1. Introduction Electronic commerce has become an attractive market to the world, and the emerging business opportunities are now becoming a major factor in world economics. Although, investment through e-commerce channels returns high profits, but like many IT systems, it could lead business organizations to a risky situation or failing to deliver expected returns. The main cause of this is the inconsistency between the system design and the desired requirements or for the misunderstanding between IT professionals and business experts. Therefore, to design e-commerce system, a communication pattern is needed either between system developers and business owner, or between customers and the online business system. Moreover, e-commerce system should be adapted with the whole business environment such as business norms and behavior, customer practice, business rules and government policy. However, Semiotic that is ‘the science of signs’ has brought many approaches to facilitate the process of understand signs’ meaning. The approach of organizational semiotic defied the organization as a group of social norms and emphasizes on the people and their role and responsibility in order to merge them when analyzing and designing information system (Stamper et al, 2004). For e-commerce systems, there is a necessity of clear meaning for each symbol, icon and image because almost all transactions done through the web system without human agent involvement. Therefore, semiotic...
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...perspective, e-commerce is the ability to deliver products, services, information, or payments via networks such as the Internet and the World Wide Web. 2. From an interface perspective, e-commerce involves various information and transaction exchanges: business-to-business, business-to-consumer, consumer-to-consumer. 3. From a business perspective, e-commerce includes activities that directly support commerce electronically by means of networked connections. 4. From an online perspective, e-commerce is an electronic environment that makes it possible to buy and sell products, services, and information on the Internet. 5. From a structural perspective, e-commerce involves various media: data, text, web pages, Internet telephony, and internet desktop video. 6. As a market, e-commerce is a worldwide network. A local store can open a Web storefront and find the world at its doorstep-customers, suppliers, competitors, and payment services. E-business: Connecting critical business systems and constituencies directly via the Internet, Extranets, and Intranets. It goes beyond a web site on the Internet to affect all aspects of business, from strategy and process to trading partners and the ultimate consumer. It combines the resources of traditional information systems with the global reach of the Web. E-business enables organizations to accomplish the following goals: 1. Reach new markets. 2. Create new products and services. 3. Build customer...
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...Human Resource Roles and Responsibilities Human resource roles and responsibilities are changing because business trends are changing. Technology, e-business, ethics, and globalization are changing the way companies do business and therefore, the human resource management need to make changes to keep up with the new trends. Globalization and Technology During the past century companies have made changes to the way human resource department’s run. Many companies created jobs overseas, which slowed down the hiring in the United States (Noe, R., Hollenbeck, J., Gerhart, B. & Wright, P., 2004). Companies are finding to survive they must compete in international markets and fend off their competitors. Companies are also outsourcing and offshoring the workload in order to compete and pay employees lower pay. Technology is constantly advancing forward. In today’s business world technology is changing rapidly and human resource department find they need to move with it. These days few companies use paper for job applications now businesses rely on the internet which combines data from several sources into a single site. Shared service centers consolidate different human resource functions into a single location (Noe, et al, 2004). Diversity and E-Business Diversity in the U.S. labor force is growing in racial, ethnic, and gender terms. Many U.S. companies have already committed themselves to ensuring they recognize the diversity of their internal labor force and use it to gain...
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...H-E-B grocery store https://www.heb.com/ fits the category of a non – news organization that utilizes social media feeds alongside traditional media feeds. Mixed media is the best way to describe H-E-B online communication (i.e. identified as a mixture of owned media, paid media shared/social media and earned media). The organization has its own website (owned media pg. 175) that allows the company to have control over information disseminated out to both its internal and external publics (pg. 118). When it comes to paid media (pg. 176), H-E-B paid to have control over 60 seconds of air time during the 2018 super bowl. Its commercial in this case demonstrated corporate advertising (pg. 176) as it promoted its annual contest Quest for Texas...
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...Joshua Tollison Phase 4 Individual Project MGM310-1204B-01 Bari Courts 23 December 2012 If I were to start an e-business the main thing I would focus on would be functionality of the site and ease to make customers feel comfortable and confident about shopping with my storefront. By this I mean designing a site that gives customers several options for the products they are shopping for; along with that my customers would have access to multiple pictures of every product available, and a detailed description of the item they are interested in. My customers would also be able to compare similar items by their available options and provide a side by side analysis. The main thing for my e-business though would be the superior customer service that is provided to my clients by means of email, live chat, and a customer service hotline if you would prefer to talk to a representative. One of the final details that would make my site superior to others would be a hassle free return policy that even included return shipping for those who need to return their products for any reason. To be able to make this dream come true there are several other factors that I will be discussing throughout this paper as I present my business plan for establishing my storefront. I. E-Commerce Infrastructure Just as brick and mortar companies have an infrastructure to help them succeed in business, so do e-businesses. By having the correct infrastructure in place allows a company to run...
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...The two companies that I choose to discuss in this paper are Procter and Gamble, and Unilever both specialized in consumer goods and fierce foes for decades. Determine how each corporate culture differs from the other. As Ravasi and Schultz (2006) stated, organizational culture is a set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for various situation. Procter and Gamble gives lots of importance to productivity and is constantly improving its productivity at all levels, to a point that it is part of the company culture. Their practices and values that have helped build that strong culture are: 1- Lead by example; the top executive team members personify the culture and consistently reinforce it through their actions. 2- Communicate regularly: Communication up, down and across the organization. 3- Transparency: Establish clear roles and responsibilities. 4- Promote for with in: human capital development to ensure consistency and well understood expectations. 5- Make data-drive decisions; Comprehensive financial, consumers and strategies rationales are all part of the decision making process. Meanwhile Unilever culture is more about what they believe in and how they act collectively. Unilever has an innovation culture. Some of the practices and values that helped Unilever achieve its goal as an innovative organization are: 1- Focus on company’s core competencies: listen to all employees’ ideas...
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...results. Let's face it IKEA is probably the biggest furniture retail name in the world. This is a business with more than 10,000 products available on every continent. They offer low prices and products that offer good value. If you want hard wearing and long-lasting, you will pay more for it elsewhere. IKEA has positioned its business offering away from high-quality and high price, and also a way from low quality, low price. It is in a very enviable position. Weaknesses The business is experiencing problems in one or two home markets. For example in the European market of the United Kingdom, IKEA has recently opened more stores which means that the number of visitors is divided by a greater number of retail outlets. So in the past the consumers would travel many miles to visit stores and each store had a...
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...have changed significantly. The adoption of modern marketing practices has led to the emergence of consumerist societies in the swelling middle classes (Chan and Cui, 2004). On one hand, this means that more people are earning enough money to spend. However, the increase in the spending power of the middle class had led to greater demand for consumer goods and thus the resources that are used to make them. The video discussed how much marketing has played a role in the way that people advocate for consumerism. Those who advocate against consumerism stated that social progress and economic development have caused contemporary marketing practice to contribute to a consumerist or materialistic society. The main issue with consumerism seems to be the fact that it is a system that consumes way more than it produces. As the video discussed the process through which consumer goods endure from extraction to production to distribution to consumption to disposal. The woman in the video pointed out that there are some missing links in the linear map that we are using to understand the process through which we receive our consumer...
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...involved between producers and consumers for mutual benefits. These mutual benefits involve an exchange that provides value to the consumer and profits to the producer. It is not at all farfetched to think of these as basically human characteristics. At the beginning of a spectrum is the producer and at the end of the same, is the consumer. They interact with each other and with the governmental law regulating their transactions. In this economic system, what will be produced is determined by what will yield the greatest profit. From the readings, Milton Friedman and Robert Almeder recognize the merits of a profit-driven economic system. They do not quarrel over the importance of profits. But they do quarrel over whether or not business firms have obligations beyond making profits. A consumer may be a pet owner who feeds and provides care for a beloved animal, a doting grandparent who buys toys and clothes for the grandkids, an individual who wears contact lenses or hearing aids, a patient who buys prescription medications, or vehicle owner. Should a consumer have certain expectations from the suppliers and producers of the products that he buys? Can we trust corporations that they will not produce what will jeopardize the human life? Was Ford to be blame in the pinto case? Must we wait for the characters like “Erin Brokovich” to fight on behalf of the helpless consumers? Who is to be blamed for the McDonald’s hot coffee case-the producer, the consumer or the regulators? Almost...
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...values, legal requirements & respect for people, communications and the environment. Our society expects that firms or companies should provide quality services & goods when & where they need at acceptable prices. In our opinionCSR is about how companies manage their business process to create o positive effect on a society. CSR can be alternatively referred to “corporate citizenship” which means that a company should be a “good neighbor” within its host community. The World Business Council for Sustainable Development in its publicationMaking Good Business Sense by Lord Holme and Richard Watts, used the following definition: “ Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” According to Niall Fitzgerald, former CEO, Unilever: "Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it..because it is good for our business" So CSR involves: Conducting business in an ethical way Responding positively to emerging societal priorities and expectations A willingness to work ahead Balancing the interest of shareholder against the interest of wider community Being a good citizen in the community Characteristics of Corporate Social Responsibility Social...
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...Netflix 9/25/2012 Section 003 Case: Netflix’s Business Model and Strategy in Renting Movies and TV Episodes 1. How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis to support your answer. Substitutes: There is a strong force of substitutes. Consumers can buy DVDs at retail stores, rent movies via vending machine like Redbox, rent online, watch movies via TV packages and premium movie channels, pay-per-view movie rental, watch movies on the internet via youtube and amazon.com, and consumers can obtain pirated DVD. Buyers: There is a strong force by the buyers, there are a lot of substitutes and companies have to fight with rivals for a competitive price and customer service. Pleasing the consumer is huge in this industry. Suppliers: There is a mediocre or low force by the supplier because there are a lot of different companies that offer the same goods. The DVD rental industry has a lot of substitutes with the same product just a different way of obtaining the movies. Potential for new entrants: The potential for new entrants is weaker because existing companies like Blockbuster are struggling to earn healthy profits. The convenience of movies online and through TV companies are over powering the in store business models that Blockbuster and Movie Gallery had. Rivalry: The force of Rivalry is very fierce because companies are coming out with new ways of obtaining movie rentals. The internet based companies are making...
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...major markets, one at home in the U.S and the other in Europe. As shown in the in the graph chart in 2006, Custom models accounted for 47.4% in the U.S while only 13.4% in the European market. Other sales based on style of bikes are in the U.S performance 15.1%, touring 35.5%, and standard 2.1% while its other market sales in Europe were performance 41.4%, touring 26.1%, and standard 19.2%. The reason Harley faces such diversification is clearly due to consumer preferences. The European markets desires performance bikes made for the open roads and high speed demands. The four main risk which are cross-cultural risk, country risk, currency risk, and commercial risk. 2. How can Harley benefit from expanding abroad? What type of advantages can the firm obtain? What advantages acquired abroad can help Harley improve in its home market? Harley’s can benefit from expanding abroad because it will allow them to separate their business from domestic economic slumps, but also diversifying their product to adjust with the demands of the consumers. The advantages of expanding international sales include maintaining a more sensible business archetype. By increasing internationally Harley can widen its international appeal and have less focused on one particular section of the world in particular. An international growth can also push Harley into new evolving markets such as China, India, and Brazil which have very large populations and many potential customers....
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...It is important that a business understand the factors to business growth and improving customer satisfaction is the key. Many organizations should always look into developing a research study to continue to improve its customer satisfaction. The research study uses feedback from the focus group and customer satisfaction surveys. The purpose of the survey is to close the gap between the organization and its consumers. An important question to ask is “How satisfied are the customers?” The business has to understand what is important to the consumer. The research study focuses on who, what, when, and where. Improving customer service sends a message to the customer of respect and appreciation of his or her business, and the business it focused on staying abreast to his or her needs. ABC auto manufacturer has been successful for the past 80 years. Unfortunately, as the years progressed the average age of its customers has been more than 50 since 1990, and logic dictates that the consumer base organically will shrink. ABC autos are high-end with an average cost in excess of $50,000. ABC auto Management has decided the target market for this automobile will be adults in the age range of 35 to 45 years if ABC will survive. The next step for ABC is to create a business research plan to accomplish its goals. Management needs to formulate a plan to attract customers in the age range of 35 to 50 to expand its customer basis and increase profits....
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