...Internal and External Factors in Management Lorenita Borrero, Darlene See, Irene Malta, James Ortega MGT/230 June 14, 2012 Devin Daugherty Internal and External Factors in Management British Petroleum is a major world-wide company with a focus on finding energy sources to meet the needs of people everywhere. BP, like its many competitors, operates within the bounds of the four functions of management; planning, organizing, leading, and controlling. Management within the BP also has to deal with different business landscapes to make sure their company stays competitive. These landscapes would be globalization, technology, innovation, diversity, and ethics. BP has internal factors that can be corrected within these categories that can lead to its success; however they also come with external factors that the company has little control over. However not a rule, an organization is can have a factor that affects both the internal and external factors that affect the four functions of management. Globalization is described as “allowing a company to maximize its profits by trying to become the best in the world (Bateman, 2011).” British Petroleum saw the advantage in globalizing because of the world demand for natural resources. This was an internal factor that leads to the globalization of the company. One of the internal factors that helped BP in its globalization efforts was the company becoming public in 1995. This allowed it to become 12th largest producer of crude...
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...Four Sector Economy Model What is GDP? : The gross domestic product (GDP) or gross domestic income (GDI) is a measure of a country's overall economic output. It is the market value of all final goods and services made within the borders of a country in a year. It is often positively correlated with the standard of living, though its use as a stand-in for measuring the standard of living has come under increasing criticism and many countries are actively exploring alternative measures to GDP for that purpose. GDP = private consumption + gross investment + government spending + (exports −imports), or [pic] Methods of computing GDP: There three types of methods of computing GDP; ➢ Production Method ➢ Income Method ➢ Expenditure Method Expenditure Method: This method can be explained by different types of economy sector model. E.g.: ➢ One sector economy model: Y = C ➢ Two sector economy model: Y = C+S = C + I ➢ Three sector economy model: Y = C + I+ G ➢ Four sector economy model: Y = C+ I +G + NX Where, Y = National Income C = Consumption I = Investment G = Government NX= Net Export. Four Sector economy model: In four sector economy model national income is measured by adding consumption, investment, government expenditure & net export Y = C+ I +G + NX Assumption: The basic circular flow of income model consists of following...
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...What are the different types of factors of production? Factors of production mean inputs and finished goods mean output. Input decides the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called as "Production Function". All factors of production like land, labor, capital and entrepreneur are required altogether at a time to produce a commodity. In economics, production means creation or an addition of utility. Factors of production can be classified into four categories. Such as: 1. Land 2. Labour 3. Capital 4. Enterprise Factors of production refer to inputs required for conducting production. Input is the starting point of every production activity. According to Prof. Benham, "Anything that contributes towards output is a factor of production." Mere existence of anything doesn't make it a factor of production but its contribution in production process is a necessary condition. Dr. Alfred Marshall described factors of production as "Agents of Production". Cooperation among factors is essential to produce anything because production is not a job of single factor Four Factors of Production in Economics - Chart Following chart provides brief tabulated information on 4 factors of production. * Mention the features of Land, Labor. * Land:- Land is a Natural and primary factor of Production. Land is not created by mankind...
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...Spending on Consumer goods is called Consumption. • Firms buy the four factors of production to make goods and services which they then sell to Households. Firms aim to make a profit; they decide how to produce the goods. Spending on production is an investment. Investment spending is an injection into the circular flow of income. • In the Goods Market, Households buy goods and services made by firms which provide them with income. • In the Factor Market, Firms buy the four factors of production (Natural Resources, Human resources, capital, entrepreneurship and technology). This provides the households with income. • Government spends money on the economy, providing goods and services such as health care and education to firms and households. This is an injection into the circular flow of income. The Government in return levies taxes on households and firms in order to pay for the goods and services. This is a leakage from the circular flow of income. The government is able to spend on the factor market in return for the four factors of production which allows the government to make the public goods and services available. The government also spends on the goods market in return for goods made by the...
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...ASSIGNMENT ONE: DUE Mar. 30 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? (Your opinion, supported by reasoning, not just a list from the text) I believe the four factors of production contribute to the rapid pace of change in business. I also believe that the five key dimensions of the business environment help in the competitive environment. With this alone the pace is likely to accelerate over the next decade based on examples such as Entrepreneurship is growing so rapidly we can all expect to see a change, however it is honestly hard to tell because there are still unforeseen factors just like the 9/11 attack that helped bring our economy down, what about other factors that cannot be predicted because they are sudden. Overall I do expect to see both an increase and a decrease. 2. What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit? Entrepreneurship plays a very important role. I believe everyone stands to gain. For example, I am thinking of starting my own online boutique. I am creating business for myself however I still will need to create an online site(which is money to the owner of the site I will use) The postal service,(when I have to ship merchandise to the customer) and the wholesale distributor who supplies my goods for profits. 3. When did American...
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...Bella Healthcare India is planning to launch in Indian market. As per my opinion, Bella has many reasons to take up this opportunity. I will categorise these reasons in two broad categories, External and Internal factors. First external factor that affects decision of Bella to take TKO is large population of India with insufficient health care services. India’s population is large and growing but healthcare facilities are not growing with the same rate. Also most of the medical facilities of the country are concentrated in urban areas, leaving rural area with insufficient healthcare facilities. Unfortunately, most of the Indian population stays in small towns and villages. Another fact, in line with this, is availability of less no of physicians and specialists in the field of heart diseases. This has created room for medical services and devices sellers to expand their businesses in the country. The EKG global revenue chart shows that between 2010 and 2015, 9% – 12% of the global revenue will come from Asia-Pacific. As one of the second highest population country in Asia-Pacific, India will definitely contribute major portion of the revenue. The figures in the chart substantiate the fact that Bella has good scope to expand its services in the country. Second factor that helps Bella to take go ahead decision for TKO is increased rate of heart diseases in the country. As per different epidemiological and angiographic studies, Indians are showing heart disease symptoms at young...
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...If the interviewee should need further clarification on the concepts, be prepared to share that information as necessary. *********************************************************************************************** Name of business: Dave’s Goods Name of interviewee: Dave Stebbins Student’s Name: Michael DeFiori Date of interview: February 5th, 2018 (5 points) STUDENT: What are the factors of production? (List and explain). (9...
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...182 183 5.1 Factors of production Capital The fi nancial capital used to establish the business earns interest. The interest is paid to thelender, who may be a bank, another institution, or an individual lender. Borrowings of fi nancial capital are called debt._ Fixed capital is capital tied up in fi xed assets, for example buildings, machinery, or vehicles.These assets will have been acquired withfi nancial capital._ Working capital is capital used for day-to-day operation. It includes cash held in the bank,goods for sale, materials for processing and capital for other short-term requirements. Working capital is used to cover wages and immediate requirements, such as utility bills. _ Venture capital is risk capital invested in a new business or one which Irestructuring, usually for a period of years. The venture capitalist hopes to make a large return on investment when the stake in the business is eventually sold, but also risks losing the whole investment.1 Land This means the land itself, and any natural resources that come with it. So oil, natural gas,bauxite, fertile soil, a pleasant climate and sandy beaches are all included in this factor of production. Every business uses some physical space – though, for example, a bank or small home-based business uses much less land than an agricultural business growing sugar. In economic terms, river and marine resources also count as land, for example fi sh, fresh water, or hydro-electric potential from a fast-fl owing...
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...dimension of production theory. It was developed by Alfred Marshallin his “Principles of Economics”, 1890, and has remained practically unaltered since. It tries to explain howequilibrium is achieved and explains the adjustment processes to reach it, going from the short-run equilibrium to the long-run equilibrium. His method is able to classify forces with references to the length of time needed for the production process; and then confine in ceteris paribus those forces that are of less importance with regards to the specific time we are considering. Four periods can be distinguished: very short-run, short-run, long-run and very long-run. The very short-run period is normally not studied as it is considered irrelevant. It is a period characterized by having all its production factors or inputs, fixed; thus implying there can be no change in their quantities.Costs are therefore considered to be fixed and logically there is inexistence of technological progress in this period. The short-run period is a period in which some factors remain fixed while others may vary in their quantity. Capital elements, such as equipment, are considered fixed factors while labour is considered to be a variable factor. During this period, cost analysis has a large dependence on marginal cost and average total costs. But, since not all factors can be increased, this will result in diminishing returns, which will imply that marginal costs will increase. A firm should stop production until marginal...
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...What alternatives might the Millers pursue? What key factors should they consider as they evaluate these alternatives? With the major issues facing by Custom Molds Inc., the Millers have to come out with alternatives to solve the issues before the problems become aggravated. The major issues that have been identified are the changing trend of the electronic industry, delivery problems as customers complained that the parts orders took four to five weeks instead of the stated three weeks delivery, bottlenecks occurred during production process, and two returned orders because of the number of defective parts. Alternatives that the Millers might pursue as below: Business strategy for complete phase-out of custom molds The changing trend of...
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...Which of the following are the primary functions of all organizations? a. operations, marketing, and human resources b. marketing, human resources, and finance/accounting c. sales, quality control, and operations d. marketing, operations, and finance/accounting e. research and development, finance/accounting, and purchasing d (Organizing to produce goods and services, moderate) Budgeting, paying the bills, and collection of funds are activities associated with the a. management function b. control function c. finance/accounting function d. production/operations function e. staffing function c (Organizing to produce goods and services, moderate) Which of the following would not be an operations function in a fast-food restaurant? a. advertising and promotion b. designing the layout of the facility c. maintaining equipment d. making hamburgers and fries e. purchasing ingredients a (Organizing to produce goods and services, moderate) The marketing function's main concern is with a. producing goods or providing services b. procuring materials, supplies, and equipment c. building and maintaining a positive image d. generating the demand for the organization's products or services e. securing monetary resources d (Organizing to produce goods and services, moderate Reasons to study Operations Management include a. studying why people organize themselves for free enterprise b. knowing how goods and services are consumed c. understanding what human resource...
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...Internal and External Factors Kelley Yiannakis XMGT/230 July 20, 2014 Dr. Tia Sheppard Internal and External Factors The process of management is working with people and resources to obtain an effective way to achieve goals. To be able to achieve goals there has to be an effective way with use of minimal waste of resources, and that is to make the best possible use of money, time, materials and people. (Bateman, T. S., & Snell, S. A. (2011). Within the process of management there are four functions planning, organizing, leading and controlling, which have many factors that impact them. The four functions have key components that are external, internal, innovation, globalization, technology, diversity and ethics. The main tool mangers use out of all of the four functions is organization, in order to maintain control you have to have organization. The one thing that affects business today is the economy, you may not be able to make consumers buy a product to improve the economy but you can promote the product to help improve it. The cost of many things have increased over the years especially in the automotive industry, back in 1896 a man by the name of Henry Ford built the first gasoline powered vehicle. In the 19th century the citizens of the United States couldn’t afford a whole lot, let alone an automobile. Over the years since Henry Ford build the first vehicle he worked for the Edison Illuminating Company and planned to open his own manufacturing business. He...
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...Managerial Economics Unit1 - 1 Mark Quiz Questions 1.Managerial economics as a new branch of Economics a. Uses new techniques to identify business and management problems b. Highlights on analyzing business problems c. Applies economic theories and concepts to solve business and management problems d. Acts totally independent of other subjects 2.Managerial Economics as a specialized branch of Economics a. Provide ready-made solutions to business problems b. Provide logic and methodology to find solutions to business problems c. provide alternative answers to specific business problems. d. Provide theoretical background to analyze business problems 3.Managerial Economics is a. A theory oriented branch of economics b. A new branch of economics c. A part of macro economics d. A part of tradtional economics 4.Managerial economics is a. A positive science b. Mainly a positive and a normative science c. Mainly a normative and a positive science d. A normative science 5.Managerial econonomics deals with the problem of a. Global economy b. An industry c. An economy d. An individual firm Unit2 - 1 Mark Quiz Questions 1.A tabular representation of diiferent quantities of a commodity demanded at different prices are known as a. Demand series b. Demand schedule c. Demand pattern d. Statistical demand table 2.An increase in demand a. Will cause demand curve to shift to the left b. Means consumers will buy more at a low price c. Will cause quantity demanded to fall d. Could be caused...
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...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 shortages or scarce raw...
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...CHAPTER-1 Introduction: The industrial report is originated from the curriculum requirement of BBA program of University of Chittagong .The topic of our report is “Formulating Industrial Marketing Strategies a case study based on PHP Spinning Mils Ltd.”. The PHP Group is a pioneer and acknowledged market leader in spinning sector in Bangladesh and one of the largest spinning manufacturing company of Bangladesh, adopting State-of-the-Art technologies and fulfilling its customers’ requirements through world-class services & products. PHP GROUP Company, PHP Spinning Mills Ltd. has started its production of high quality cotton & melange from January 2006 using latest technology and having production capacity of 466,746 kg per month in which 265,986 kg is cotton & 200,761 kg is melange. The report has been Prepared under direct supervision of Mr. Mohammed Shahedul quader , Assistant Professor , Department of Marketing Studies & international marketing, university of Chittagong. Objectives of the study: The basic or main purpose of industrial tour report is to learn practical knowledge about business world for balancing the gap of our industrial policy in the modern job market. The objectives of this industrial tour are as below: • The prime objective of the study is to know the practical marketing scenario of the company. • To identify an overview of PHP Spinning Mills Ltd. • To perform the SWOT analysis of the company. • To evaluate...
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