...decade. 2. What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit? Entrepreneurs contribute greatly to many aspects of the economy. Giving them the opportunity to create and grow businesses generates profits for multiple business and creates jobs. Everyone in the economy has the opportunity to gain from entrepreneurship. 3. When did American business begin to concentrate on customer needs? Why? The relationship era marked the beginning of businesses focusing on customers and maintaining long term relationships. After WWII consumers started dominating the market again. Companies had to appeal to customers in order to make money. Since it’s cheaper to maintain customers and keep them coming back, businesses began focusing on the customer and creating long lasting relationships with them. 4. How do nonprofit organizations compare to businesses? What role do nonprofits play in the economy? How do they interact with businesses? Nonprofit organizations are like businesses, but they do not work for a profit. While businesses operate for a profit, nonprofits work to help the economy in several areas such as education, health, religion, and art. They often work with businesses to better the economy. 5. What are the factors of production? How can economies grow when one or...
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...P3 Describe how the environment and culture of another country affects a business operating internationally I am going to discuss how the environment and culture of India and China affect businesses operating internationally. I am going to use Tesco as an example. Environment: Both India and China have been named as countries with the highest expected growth in the next 50 years. India population – 1.1 billion, 1.3 billion. India is democratic, China is communist. (Businesses in India have freedom of speech and the way they operate their business while business operations in China are very limited by the Government) China is strong in manufacturing while India is strong in services and Information Technology. Strengths of China = Weaknesses of India Infrastructure in India: India’s road network is a barrier to business operations and has been holding industry back which is a challenge that Tesco would come across with if deciding to expand in India as it would make imports into India much more difficult, time and cost consuming. However Indian government has made it a priority to improve the country’s infrastructure and has pledged to build 14km of new roads in the nearer future. Infrastructure in China: China’s infrastructure is top class – one of the best in the world. China spends almost 50% of its GDP on investment towards their infrastructure which include; roads, bridges, trains, ports, technology etc. China has currently approved an estimated $156 billion dollar investment...
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...inside and outside a business that influence its behaviour. Due to the current economic environment, many businesses are being forced to fight for survival and they therefore lose focus on long-term success and instead focus on short-term success. However the larger companies, which are blessed with sufficient finances and stability, such as Marks and Spencer and John Lewis are focusing all their efforts into improving their reputation, brand, revenue and costs all in hope of securing long-term success. In order to improve their reputation and brand image they are more than ever before, adopting ethical business practices including ethical sourcing, marketing, pricing and treatment towards employees. However, despite this positive move in the right direction from some businesses, others are being forced to seek success through other, unethical means such as unlawful treatment towards employees, unethical means of advertising, pricing, selling, contracting, sourcing and overall failing to meets the current laws and legislations, causing them to gain bad publicity and tarnished reputations yet, in some cases such as Amazon and Primark, they have managed to not only remain successful but thrive. The reason for this is that an unethical company in one market could fail due to consumer action, yet an unethical company in another market could dominate. Why? Because target markets expect different things and react in different ways. For example, Primark’s customers are the bargain hunters...
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...Market Failures in Movies Rentals Katelyn Cuffle Microeconomics April 12, 2014 In today’s economy the technological advancements and market shifts have taken a toll on big businesses all over. Blockbuster, one of the well known movie stores suffered because it couldn’t keep up with the fast moving market shift in using new technology to rent movies on demand and now they are closed. The purpose of this report is to inform readers about market failures that happen when new technological advancements take over. Next this report discusses how adjusting to market shifts affect businesses. Finally this report discusses a solution that could help solve the problem for stores that can’t generate enough customers to come in because of technology. In the past couple years we have seen the “industry entertainment and media giants lose revenue as young upstart companies (or larger ones with visionary leaders) leverage the capabilities of the Web to outperform them. And now we're watching them go bankrupt as they fail to reinvent their business models to counterbalance the distribution of information online (Welchman, 2010).” Blockbuster is a well known business who because of the new technology advancements like ordering movies from your television and having Netflix went bankrupt. In today’s economy technology is...
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...To what extent is an e-commerce strategy the best way for businesses to increase their profits? (40 marks) E-commerce is the online transaction of goods and services, which has completely revolutionized business and the way in which businesses can operate. It’s now easier for customers to compare prices/products with a little time spent browsing the Internet opposed to dragging themselves to the stores. This means that e-commerce is having an impact on what and how much businesses sell, therefore influencing the profits the business gets. In this essay I will consider whether an e-commerce strategy is the best way for a business to increase their profits, or whether e-commerce is not the best strategy to do this. I will be arguing that with the use of e-commerce businesses have more reach to customers and can provide more options to increase their profits. Alternatively I will also talk about how e-commerce may not work for all business plans/strategies, therefore increasing the risk of loss. Introducing an e-commerce strategy allows the business to increase its customer reach, creating a larger customer base, as e-commerce is accessible to anyone who can use the Internet. E-commerce also creates an ease of use/purchase for customers, which means they do not have to go the physical stores, saving money and time. The combination of ease of use/purchase and larger customer reach results in the ability for companies to increase sales, and so this would lead to higher revenues...
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...P. 493 P. 496 P. 497 P. 501 Defined Content standards Materials Procedure Lesson outline Closure Assessment Overheads VISUAlS N Visuals for overhead projector. Copy to transparent paper for overhead. P. 502 NVisual-1: Market defined P. 503 NVisual-2: Business defined lESSonS 2 Copy and handout to students. P. 506 P. 513 P. 518 P. 522 2Lesson-I: I, Pencil 2Lesson-II: Specializing in production 2Lesson-III: Wal-Mart 2Lesson assessment the role of business in the econoMy Markets and coMMerce Module-16 Teacher DEFInED A market is a social arrangement that allows buyers and sellers to discover information and complete voluntary exchanges of goods and services. commerce consists of trading something of economic value such as a good, service, information, or money between two entities. business is the management and coordination of people and resources to accomplish particular production goals, usually for the purpose of making profit. business, commerce, and markets create many benefits for consumers, and as a result of business, commerce, and markets in the economy, consumers experience an increased standard of living. businesses obtain resources such as labor and equipment, and businesses specialize in the production of particular goods and services. As a result of business in the economy, the variety, quality, and quantity of goods and services available to consumers increases, while the prices of goods and services decrease...
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...financial goals while minimizing risk (investopia.com). Simply put, diversification can reduce risk. Using diversification as a strategy will help to develop a business in entering new production lines, or markets, and reduce the risk by spreading investments. However, can a business reduce its risk with the appropriate diversification techniques, and when is the right time to diversify, or not. We will begin to explore the ideology of diversification. Through diversification some risks can be eliminated, however no matter how much you implement diversification, businesses never reduce their risk down to zero. (Financial Management, Principles and Applications, Chapter. 8, pg. 221). Looking closer at the concept of diversification, the idea for a business, or investors is to create a portfolio that will include multiple investments in order to reduce risk. For example, Everything But Water sells swimwear, during the summer months business is booming. They invest 20% into swimwear, receiving 0% during the winter months. However they have implemented a leisure apparel line that now generates 20% of return year round so that there is no money loss. By combining products half on swimwear, half on the apparel line, you have completely eliminated risk. This is a prime example of how diversification is...
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...have been set. You are not expected to find any other material on the company other than what is in the case. Do not rely upon solely re-presenting points, statements and reasons for things given in the case. You need to say why they are important and/or in what way they are an example of, the concepts, principles and frameworks that we have gone over in the course. Here are some of the chief ones: • Market orientation • Helping to match client and organisation interests and benefits, now and in future • Helping manage demand by understanding ‘how markets work’ • Marketing Mix – the 4Ps that management can have a large degree of control over • The three types of markets – buyer decision making and choice process differ in each • Understanding (potential) customers and clients - ‘through their eyes’ • Buying decision processes – individual, organisational • Needs and Wants • Segmentation: principle and processes • S T P – Segmentation, choice of Target one(s), Positioning within it (them). • rMarket-based assets – what they are, their influence on market response • Brands (a manifestation of Mbas) and their management • Product – what can be embraced by this term • The Product category life-cycle • Managing through the stages of the PLC • Ways of extending the life cycle including the Ansoff Matrix • The ‘marketing...
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...Complexities of the US Financial System Describe how the US financial markets impact the economy, businesses, and individuals. US financial markets play an important role in contributing to the health and efficiency of the economy, businesses, and individuals. (Spiegel, 2002) Because there is a strong relationship between the health of the economy and financial market development and economic growth, even a slight dip in the financial markets can radically effect how the economy, businesses, and individuals respond. (Ask Dr Econ, 2005) Financial markets “facilitate the raising of capital in the capital markets, the transfer of risk in the derivatives market, price discovery, global transactions with integration of financial markets, the transfer of liquidity in the money markets, and international trade in the current markets.” (Financial Markets, 2013) When the financial markets are doing well, “firm-level, industry-level, and cross-country studies all suggest that the level of financial development exerts a large, positive impact on economic growth.” (MIT, 2001) When financial markets are not doing well, interest rates on loans will increase and access to credit decreases. Interest rates are higher because of the risk that banks feel are involved. In times of high risk, interest rates go up. It is a way for banks to limit their losses and make as much money back – just in case a default occurs. So those businesses that are able to get credit are finding that it is...
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...Objectives 1.Understand when and how business diversification can enhance shareholder value. 2.Gain an understanding of how related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage. 3.Become aware of the merits and risks of corporate strategies keyed to unrelated diversification. 4.Gain command of the analytical tools for evaluating a firm’s diversification strategy. ’ When to Diversity A firm should consider diversifying when: • It can expand into businesses whose technologies and products complement its present business. • Its resources and capabilities can be used as valuable competitive assets in other businesses. • Costs can be reduced by cross-business sharing or transfer of resources and capabilities. • Transferring a strong brand name to the products of other businesses helps drive up sales and profits of those businesses. Testing Whether Diversification Will Add Value The Attractiveness Test: • Are the industry’s returns on investment as good or better than present business(es)? The Cost of Entry Test: • Is the cost of overcoming entry barriers so great that profitability is too long delayed? The Better-Off Test: • How much synergy will be gained by diversifying into the industry? • Note: Synergy (1+1=3) is realized when financial benefits of operating in two businesses will be greater than the sum of the separate individual business. Strategies For Entering New Businesses Diversifying into New...
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...part of the business is working towards the same long-term goals * Objectives for business functions (eg: operations) should not be separate from other functional areas * All functional objectives should be co-ordinate and not contradict each other For example, Marketing may set a functional objective to increase sales by 25% over a three-year period. A Functional Strategy is the way in which the Functional Objective will be carried out. Marketing Objectives These are the foals of a Marketing function which are designed to help achieve Corporate Objectives. They are usually set a senior level of the hierarchy, and are likely to include the following… * Maintain or increase Market Share * Target a new segment of an existing or new market * Develop new products from Market Research Marketing Objectives must be realistically achievable and should revolve around the business’s future. Types of popular Marketing Objectives may include… * Increasing Product Differentiation * Growth * Continuity * Innovation Factors that affect the setting of Marketing Objectives may include… Internal Factors | External Factors | FinanceThis depends on the...
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... | Assessment criteria to be assessed in this assignment |Criteria Reference|To achieve the criteria the evidence must show that the learner is able to: |Task No. |Page No. | |P1 |Explain the international business environment in which a selected organisation operates |1.1 | | |P2 |Describe the mechanisms that regulate international trade |1.2 | | |P3 |Describe how the environment and culture of another country affects |1.5 | | | |a business operating internationally | | | |P4 |Describe how the monetary environment affects businesses that operate internationally |1.8 | | |P5 |Identify why...
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...Critical Writing and analysis Course Code: C07CP Assignment Title: ‘Final Essay’ Word Count: 2,561 Social media at small businesses Introduction Social media is defined ‘as the way in which people interact to create, share, and exchange information and ideas in virtual communities and networks’ (Katona & Sarvary, 2014). Few of the most common social media platforms are differentiated into social networks (such as Facebook, LinkedIn, Google+, instant messaging), collaboration networks (examples: slideshare, Wikipedia, Prezi, Google docs, Zoho docs, survey monkey), image sharing (Instagram, Flickr, Pinterest and Picasa), blogging (Tumblr, Blogger and Word-press), micro-blogging (Twitter) and video-sharing platform (YouTube, Blip and Vimeo). Apple does not use Facebook or Twitter for social media marketing because it is a multinational corporation, but not every business is as large scale and successful as Apple. Social media now represents a new horizon of marketing opportunities to businesses. Marketing is a practice, which establishes what products or services the customers might be interested in. Social media supports the development of marketing of businesses, to have a different perception about the brand; this allows creative methods to implement basic marketing. Social media marketing provides the tools that the businesses needs to be able to observe discussions through the internet efficiently (Assaad and Gómez, 2011). According to Gamboa and Gonçalves...
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...comer foreign companies and business firms. " Star Engineering Group Company, Ltd " is also one of them and is being engaged with some problems within it. They are encountering with staff confusions, wastages, delays works, lack of motivation and conflicts. And expected sales and profit are often less than what corporate management wants to be. However, they take no interest in any audit and pay no attention to strategic planning of the organization. So I have to discuss with the corporate management how important is the business strategy, how to formulae a strategy, how to adopt approaches to strategy evaluation and how to implement it. 2. Objective * To understand the process of strategic planning * Be able to formulate a new strategy * Understand approaches to strategy evaluation and selection * Understand how to implement a chosen strategy II. Executive Summary Star Engineering Group Company Ltd which has been established since 1998 is engaging in businesses such as electrical and machinery production, building construction,...
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...tapping of cheaper foreign labor markets. Globalization can be good for business in that it makes operating in foreign markets more efficient. The term good can be defined as having profit, advantage or benefit. Therefore, globalization is good for business in that it benefits the organization by increasing profit in other world markets. (1, Premise) By operating on an open market, businesses can communicate more efficiently and effectively with their customers and suppliers. This will allow businesses to better manage their supplies, inventories, and their distribution networks. Businesses can now market and sell their products with ease and on the same schedule as they would in their home country. (1, Conclusion) Globalization allows businesses to do better business in foreign countries by being able to market and sell their products by using free trade and the free flow of capital. (2, Premise) Another advantage of globalizing a business is that we can outsource products to other countries to make. Production of these products will be of similar quality but cheaper to make. It will help boost other economic markets in that it will increase jobs in that region. By outsourcing these jobs to foreign countries, it will leave better jobs for American workers. (2, Conclusion) Globalization will benefit businesses and foreign countries in that products are outsourced to other countries for a lower cost while creating jobs in a foreign market which will help the foreign counties...
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