...1. ISSUES FOR DISCUSSION In recession economies, companies react to these changes in the marketplace by reducing costs, cutting production, reducing investment, entering foreign markets, working more with equity capital, improving efficiency, re-structuring debt (Beaver and Ross, 1999; Laitinen, 2000; Pearce and Michael; 1997; Zehir, 2005). An economic crisis requires some changes to be made in companies´ strategies. The fast food retailers even avoided increasing prices during this economic crisis. While consumers feel insecure in their job and negotiate more about financial matters (Shama, 1978). Despite many companies cutting theirs operational costs or reducing employees, McDonald’s in India planned to increase its headcount and strategically do not cut its cost. Taking advantage from the reducing prices of real estates, McDonalds start to gain more market share. McDonald’s management team believed that the economic crisis gives more opportunities to conduct business aggressively. Exploring the case study for McDonalds – Business Strategy in India, a study approach is to explore the whole picture of a successful this fast good chain’s action and strategy to cope with down turn economy. In other words, this case was about to discusses how McDonald’s managed to buck the trend, its early years and business strategy to get more out of its stores in India. On the same time, how McDonald’s can maintain and improve their performance by adjusting their competitive strategy...
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...Within recent decades the UK economy has faced many serious challenges, including three recessions in the early 80’s, early 90’s and late 00’s. Up until the onset of the recent financial crisis, output growth in the UK exceeded that in many other European countries. The UK’s economic performance remains one of the highest in Europe and it is still one of the most globalized countries in the world. Using 1980 as a base, in recent decades the economic output per head of population in Britain has risen giving significantly higher standards of living however the UK economy has been scarred by recession. The 80’s period saw great social, economic, and general change. Wealth and production progressively migrated to more newly industrialising economies. The early 1980s marked a severe global economic recession that affected much of the developed world. In the UK, the 1980s was a period of economic volatility. At the start of 1980, the biggest problem facing the UK was cost push inflation. In the late 1970s, UK inflation reached over 20%. This was caused by rising oil prices and wage push inflation. Unemployment shot up to 3 million and high unemployment persisted throughout the 1980s. After recovering from the 1981 recession, the UK experienced a long period of economic expansion. Towards the end of the 1980s, the growth rate reached record post-war levels. The 1990s began with a severe recession, leading to higher unemployment and a massive slow...
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...Willie Toussaint December 5, 2012 Sandwich Blitz SWOT Thoughtfully listing the STRENGHTS, WEAKNESSES, OPPORTUNITIES, and THREATS of Sandwich Blitz and its decision to expand should be done immediately. This is a big picture exercise that challenges them to compile, analyze, and evaluate the significant influences that work for or against its strategic objectives (Sultz & Young, 2009). Strategically planning will help aid Sandwich Blitz with the decision of expanding and locating new locations. It allows for all management persons to get involved in the process. Although I believe that the expansions should be on small scale because this allows them time for growth if the new expansion takes off. The biggest STRENGTH of Sandwich Blitz is that they have the resources to open two additional locations if good locations can be found. Another strength would be, that they have the staff to move to these new locations. This also allows for low level management to get involved in the marketing of the new expansions. A major WEAKNESS of Sandwich Blitz is that due to the recent economic downturn, the larger park offices have been affected and this could affect business because people are probably not shopping in these areas too much. They would probably have to come up with cheaper menus and do specials to attract business which could be costly. The OPPORTUNITY for Sandwich Blitz would be that the expansion allows for more business especially if it is moved to another...
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...difficulty for seeing the systematic risk because of the unregulated new financial instruments such as credit default swap and derivatives securities. The Federal Reserve Bank was responsible for the financial crisis due to large amount of money flow in the United States. Thus, US needed to implement the monetary policy in order to overcome from the financial crisis. This paper drafted the causes of financial crisis analyzed by the macroeconomist and drafted by the American Bar Association. The Federal Reserve Bank kept the interest rates historic lows due to recession in 2000-2002. The low interest rates causes the unwanted money supply and this excess credit was invested heavily in the United States in the form of treasury securities and financial derivatives that leaded to bubble in commodities and houses prices. This paper examines the Federal Reserve monetary and fiscal policy during and prior to course of recession in 2008. The economy had faced at least three crises since 2008, fiscal crisis, financial crisis and unemployment crisis. These crises are interrelated. The unemployment crisis during 2008 has causes the fiscal deficit at the frightening level. The economy is still facing the unemployment and fiscal crises. The unemployment rate remains high in the world and the fiscal problem in Europe has not been fully resolved. The Fiscal Policy: The fiscal policy played a considerable role in the financial crisis during 2008. The changes in the fiscal policy have large...
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...CASE: Oilwell Cable Company, Inc. Question 1: The advantage of proceeding without passing it by the team is that the process will be much faster and somewhat cheaper. Norm runs considerable risk, however, if he does not discuss the microprocessor decision with his production team. If he does not pass the decision by the team, they may assume that it is a management attempt to reduce the size of the work force. The case makes it clear that the company depends on a small, loyal workforce. If even one of them becomes disgruntled, it could have significant impact on the quality and productivity of the plant. This decision, because it, in fact, will not displace workers, seems well within the comfort zone of the team. An old adage says that you do not ask a question unless you are prepared to hear the answer. It is entirely possible that the team, mindful of recent cutbacks, will think that this improvement is really about cutting more jobs and turn it down. Another possibility is that they may delay implementation by asking for further study, or suggesting alternate solutions. As noted in the previous question, they can think that regardless of whether they are asked for an opinion or not. The advantage of asking is that the issues are out in the open, and management maintains the loyalty of the employees. Based on the description of the company and their success, halting this improvement seems a small price to pay for the support of the employees. Management...
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...GCC countries. Since the end of 2007 and the beginning of 2008, the world has been suffering from the global financial crisis. It is believed to be the worst financial crisis in 60 years at least since the Great Depression in 1930s, due to the speed, scope, and scale of its impact. The huge difference distinguishes the contemporary crisis from the others is that the other crises were concerned with economic inflation and the current one is concerned with economic deflation. The global financial crisis has started in America, then crossed the Atlantic before going global. It began in the mortgage markets of the United States and erupted through financial markets (Savona, Kirton, Oldani 3). Many factors have contributed to the economy's recession, where signs of housing bubble problem were seen at the end of 2007. Caused by low interest rates beginning on January 3, 2001, and ignored by regulatory agencies, Americans borrowed excessively for home mortgages and this phase lasted to 2004. After that, from June 30, 2004, interest rates started to rise which led to the mortgage being unbearable and eventually subprime. This phase was marked by the increasing foreclosures and it extended from 2005 to 2007. This lead us to the conclusion that global financial crisis occurred due to easy monetary policies along with tax cuts and to failure of regulatory arrangements (Desai 1-3). This was the origin of the global financial crisis in the United States. Global financial crisis major impacts...
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...series of major economic and financial problems. The events began with the financial crisis of 2007–2008, considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. Affected by the global economic recession, Vietnam's economy in 2008 faced many difficulties even in the next period of time. It was hit by a large fall in export demand and foreign direct investment. All entities in the economy from firms to consumers had to suffer from the condition of the economy. The government cannot stand apart from this situation, many policies, stimulus packages and other...
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...MBA 405 - Global Organisational Environment Content |1. Abstract |Page 4 | |2. Task 1: Learning log |Page 5 - 12 | |3. Task 1: Summary of academic journal |Page 13 -14 | |4. Task 1: Reference |Page 15 | |5. Task 1: Indexes |PDF file | |6. Task 2: Marks and Spencer operation report |Page 16 - 26 | |7. Task 2: Reference |Page 27 - 28 | ABSTRACT MBA 405 - Global Organisational Environment Probably everyone will agree that at the beginning of the 21st century, the impact of globalisation on countries, societies, businesses and individuals have been much more evident than ever before. Especially for businesses and organizations, globalization has impacted considerably on the way businesses are operated, managed and developed. Success of businesses and organizations have been so dependent on how well and proactively they have responded to the global organizational environment...
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...Air Transpor 1069917 5 May 2011 SFT 1007-1011 Introduction to air transport The impact of recession in air transport(passengers demand, economic cycles, current developments) The reports covers the entire aviation industry and will include the recession aspect and its consequences on the passengers demand, the economic cycle and also on the current developments. 1.0 Introduction One of the biggest international industries, the air transport, has the largest sensitivity on the economic crisis. That crisis hit and still continues to effect the populations, industries and economic growth in developed and developing countries. Every sector has been effected by the crisis, every industry has had a reaction and an immediate research for solutions. Instability of revenue and expenditure in the airline industry was effected from the global change. That for is easy to deduce that these reactions are different from each other. This in according to available founds, resources and differences in management. 2.0 Impacts on demand The demand aspect, is a factor that shows us the relationship between population and economic crisis. In fact, the perception of crisis brings different fears and uncertainty in people. Thus leading to an increase of the overall savings, with consequences under the economic factor, with less expenditure incurred by each person. This is one of the things that influenced more directly the airline industry, with a sharp drop in demand. Taking...
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...transformation of materials, substances, or components into new products” (BLS, 2011) and includes consumable goods such as bakery items, candy and items that are tailored. Since the beginning of the recession that hit on a global level and here in the United States, employment trends have taken an interesting turn of events over the last four years. Current Employment Trends 2011 The manufacturing industry was consistent with the trends of continuing mass lay-offs and contributed greatly to the overall unemployment percentages that hovered steadily in the 9.0+ percentile. The month of April, 2011 showed the highest rates of manufacturing industry layoffs. According to the BLS.gov website there were 397 companies who implemented layoff events that affected up to 47,104 manufacturer workers. With only 23,400 job openings for 47 thousand unemployed, it is evident that 2011 was not a good year for the individuals and families of a large sector of manufacturer workers. The average manufacturer employee at the level above non-supervisory positions earned approximately $23.60 an hour and worked a normal 40 hour work week. The non-supervisor’s earned an average $4.60 less with their hourly wage consistent at $18.91 within a 41 hour work week. Trends 2010 During the recession we can take a closer look at how it has affected the manufactories in the ways they have to perform in order to stay up with employment. During the last quarter of 2010 the employment had increased for...
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...In general the economy tends to experience different trends. These trends can be grouped as the business/trade cycle and may contain a boom, recession, depression and recovery. A business/trade cycle is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real Gross Domestic Product (GDP) and other macroeconomic variables. Samuelson and Nordhaus (1998), defined it as ‘a swing in total national input, income and employment, usually lasting for a period of 2 to 10 years, marked by widespread expansion or contraction in most sectors of the economy’. These fluctuations in economic activity usually have implications on employment, consumption, business confidence, investment and output. The Keynesian Approach, this theory shows how the collaboration of multiplier and accelerator can lead to regular cycles in aggregate demand. The Keynesians believe that economic activity is generally unstable and is subject to inconsistent shocks, usually causing the economic fluctuations and are attributed to the changes in autonomous expenditures especially investment. The Keynesian approach is pretty simple; higher investment will lead to a larger rise in income and output in the short run. This means that consumers will spend some of their income on consumption goods. This will give rise to further increase in expenditure. Ceteris paribus an initial rise in autonomous investment produces a more than proportionate rise in income. The rise...
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...GM 545 Business Economics You Decide Being that the U.S. has fallen into a recession and the severity of the recession there are some changes that need to be made. The Fed’s expansionary monetary policy assisted with the economy recovery from the 1990-1991 recession. Only because of the increase of GDP that began in 1992 and continued through the rest of the decade I think there should be a different approach to improving things. This way seemed to have taken quite some time to get things accomplished and back on track again. However, this method did work extremely well in some areas. With one of the areas being the unemployment rate which is currently at 8% and is expected to rise. For this reason I agree with some of the experts I consulted with on the idea of expansionary monetary policy. This method has been proven to help improve the unemployment rate to a record low of only 4 percent. Currently we are in great need of getting the unemployment rate lowered. The only problem that I have with the expansionary monetary policy is the length of time it takes for changes to be made and results are noticed (McConnell-Brue, p.274). On the issue of zero inflation there are several benefits of a zero inflation economy. In zero inflation economy there is an enabling of price distortion and there is uncertainty involved in price drafts. The zero inflation also aids in enhancing the economic growth along with adding liquid money to the economy. The benefits of zero inflation...
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...State and regional unemployment rates had a modest change in August. 26 states documented an unemployment rate boost, 12 states and the District of Columbia posted an unemployment rate decline, and 12 states had no change. Forty two states and the District of Columbia registered unemployment rate decreases from a year earlier, seven states experienced increases, and one state had no change. The national jobless rate edged down to 8.1% from July and was one percentage point lower than in August 2011 (Bureau of Labor Statistics, 2012). In August, 54 metropolitan areas reported jobless rates of at least 10.0 percent, down from 99 areas a year earlier, while 123 areas stated rates fewer than seven percent, an increase from seventy three areas in August of last year. Yuma, Arizona, and El Centro, California, documented the highest unemployment rates in August 2012, with almost 30% each. Bismarck, North Dakota, recorded the lowermost unemployment rate, 2.6%. A total of 214 areas documented August unemployment rates below the United States total of 8.2%, 150 areas reported rates beyond it, and eight areas had rates equal to that of the nation (Bureau of Labor Statistics, 2012). As of August, Florida’s unemployment rate was 8.8%. In the current economy, many Americans are concerned that a rebound is still many years away. The hope and expectation appears to be that a new Presidential administration will help turn the tide on the depressed economy. However, expectations do not...
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...In Tillie Olson’s, I Stand Here Ironing, a mother is contemplating what type of life she had given to her nineteen year-old daughter, Emily. From the time Emily was born, and especially after her father had left them, Emily’s mother did what she could to provide for her daughter. She even had to go to the extent of sending her away to Emily’s father’s home so she could remain home and make money. The story was heralded by the emerging women's movement of the early 1960s as an example of the difficulty of some women's lives and as a portrayal of the self-doubt many mothers suffer when they know their children are not receiving all the attention they deserve. Also, the Great Depression hit many families hard; a lot of them were splitting up in the hopes to make things more affordable. Although our nation is not going another depression, families are still being split up to ease the financial burden. Sometimes, families go their separate ways to escape their financial problems. The iron was a significant piece of the story. The irons of that time were said to be heavy and not like the ones we use today. The iron represents the effort that the mother put into providing a quality lifestyle for her daughter. The process of ironing reflects the actual lifestyle that Emily and her mother had lived. When “pressing” clothes, one must first sure the iron is hot enough. Since the irons back then probably were not electric, they had to be heated on something that was already hot, like a...
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...Morgan-Moe's Case Study The effectiveness of Morgan-Moe’s Motivational Programmes 1. Executive Summary Morgan Moe’s drug stores are in financial crisis due to economic downturn. All expansion plans were halted and staff were being laid off. To avert these crises, new systems were introduced to motivate staff amidst the challenges. This report details the results of implementing the various motivation programmes with valuable recommendations. 2. Introduction Throughout the assessment, some key dependent and independent variables were worth noting. These are: • The individual management styles • The demographics (age, mobility, employee status) • Employee satisfaction and turnover In each of the programmes however, it was prevalent that the employees were the most independent variables. The dependent variables or outcomes of the system implementation, however, relates to the inputs that employees receive in terms of their contributions and purpose towards goal achievement. These include: • Employee satisfaction, turnover, age and motivation 3. Outcomes In addition to the already listed outcomes, there are other outcomes to be likely measured: • Net profit: with the implementation of the programmes, all stores made net profits after additional monthly staff cost were incurred through the implementation of programmes 2, 3, 4 and 5. • The effect of turnover on staff cost 4. Programme Effectiveness...
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