...has gone to his boss Tony, the sales manager, to ask for an exception to the fixed price policy. Why do you think Standard Machine is in this difficult situation with what was previously a loyal customer? What has changed? What would you do? Occidental Aerospace it seems has recently changed to a competitive bid process. This has changed the dynamics of Standards relationship with Occidental. Occidental in reality views the purchase of the equipment as a purchase of a commodity when in reality it is the purchase of equipment and services. The machine tool industry has not seen alot of change in the last couple of decades the rise of the internet and global marketing has enable customers to shop worldwide for these types of machines at various countries, many of which have lower overhead costs than US firms can manage. this has lead to a rise in low cost, and usually low quality machine tools. Scott had a hand in this by agreeing to compete in this bidding process between vendors. Scott should be conversing with Joann concerning Standard's unmatched superior product, yes they can get the same type of machine from another company...
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...7 trillion to deficits between 2001 and 2008 and because they were financed by borrowing which increases the national debt. In an effort to bolster economic performance, President George W. Bush signed the Economic Stimulus Act of 2008 on February 13, 2008. More than two thirds of the $152 billion bill consisted of economic stimulus payments that were sent beginning in May 2008 to approximately 130 million households. As part of the ten-year tax cut bill passed by Congress in the spring of 2001, the Treasury mailed tax rebate checks of up to $300 for single individuals and up to $600 for households from late July and through late September 2001.Of those households receiving the rebate, almost 20% had reported that they would spend it and almost 32 % had reported that they would save the rebate, and 48% had reported that they would pay debt with the rebate. Concerning the impact of the rebates, the conventional wisdom is that the tax rebate signed by President Bush failed to stimulate the economy. The argument that the 2001-2003 Bush tax cuts...
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...Business Economics ECON 545 Professor Ermias Weldemicael Week 6 Macroeconomic Analysis Situation B William Samarin August 15, 2014 Situation B Introduction In situation B, Cindy wants to start her own business where she installs solar panels. She has based her choice on what she perceives as the economic benefit of the cost savings of solar, both for businesses and homeowners plus the positive environmental impact of using solar. She has also heard that both the state and Federal government is offering incentives and rebates for the installation of solar panels to aid in the purchase of a solar system. The macroeconomic impact of her business decision needs to look at the effect of the solar industry on the gross domestic product of the United States, unemployment in the field, the fiscal policy impact, business cycles in the industry, and monetary policy and interest rates as well the international trade impacts of solar installations. Without an understanding of these areas, starting a new solar installation business could be a risk. Gross Domestic Product and Solar Gross domestic product is the market value of the final commodities and services that are produced by any country during a specific time period. In most cases this is measured over a single year (Hubbard, 2012). The gross domestic product (GDP) impact of the solar energy industry is seen in the creation of jobs in the specialized production of solar panels, the installation of solar systems...
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...China’s Economy- Whilst performing a close analysis on the economic and manufacturing standpoint of China, what are the main factors that must be taken into consideration? Currency – China VS The Netherlands A very large part of expanding a business to another location, especially outside of the European Union, is analysing the currency and exchange rates of that country in comparison to your own country’s. As found on the Currency Encyclopedia; CX, the Chinese Yuan Renminbi is the currency of China. Their currency rankings show that the most popular China Yuan Renminbi exchange rate is the USD to CNY rate. The currency code for Yuan Renminbi is CNY, and the currency symbol is ¥. In comparison to the Netherlands, once again according to www.xe.com, 1 euro is equivalent to 6.81086 yuan. When acknowledging the comparisons over a year, this is the outcome: The Economics of the “China-Price” Manufacturers in China have the ability to significantly lower their prices compared to foreign competitors, they are able to produce a large range of items at a much lower price. Due to this, China has taken over 70% of the world’s market share for items such as DVDs, toys, more than 50% for bikes, camera, shoes and telephones, and more than one-third of air conditioners, colour televisions, computer monitors, luggage and microwave ovens. China has established dominant market positions in everything ranging from furniture, refridgerators, washing machines etc...
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...back up, we are still in a recession. There are still a ton of unemployed people, people losing their jobs or being laid off, etc. Because of our recession, any company that manufactures laundry soap has to continuously adjust and/or create new marketing strategies. The laundry detergent industry is affected as well as many other companies. If people do not have the funds to spend on any product, it may case the companies to drop their prices down. Another way the companies try to make it more affordable for consumers is to offer coupons, sales, or even rebates, whether it is a mail in rebate or an automatic rebate at the time of purchase. All of these things also help in promoting their products. A marketer can have a really difficult time if the economy is on a downward spiral. Producers of laundry detergent also face other issues as well, one of them being inflation. Inflation causes interest rates to rise. As these rates rise on a company, it causes the company to really have no choice but to raise the prices on their products. Market Force 2: Competitive Environment Who has the better made...
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...1a The issue is whether the $1 million sales of property is capital, or it is a “flow” from John’s business. According to US judgement of Eisner v Macomber, the concept of “flow”, as the income that “flows” from capital should be treated as ordinary income. Therefore, whether there is a “flow” or not would be the most critical judgement to make. In John’s case, he bought the motel for $300,000 and costed another $50,000 to demolish the building; in the end he sold the property for $1,000,000, so he has gained $650,000. According to the judge decision of Hochstrasser v Mayes [1960] AC 376, in order to determine ordinary income, this earned income must be a real gain. John has gain $650,000 from the activity. Therefore, cash and genuine gain have been determined. John was supposed to purchase this motel site for build a new kindergarten because he believed that Town Council had plan to do it. So he can do it before Council then expect to sell it back to Council for a higher price. Therefore, what John was doing could be indicated as a business. He ended up discovered the land have natural underground hot water and sold it to a green energy company for $1,000,000 with $650,000 genuine gain. Therefore, this $650,000 of income is likely to be a ordinary income. However, it could be argued that the property would be regarded as capital. For the reason that John’s income is not a regular payment and it is not severable from its earning source, because the source is the capital...
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...their doors. In an article in USA today, Sharon Carty wrote that there were systematic problems in GM for decades (may 13, 2009). In my opinion, the beginning of their downfall could have been following the 2001 terrorist attacks. At that time, GM was praised for responding quickly and precisely. They began offering many rebates with new car purchases and 0% financing on vehicles purchased. To compensate for the low interest rates and multiple rebate programs, GM was forced to raise its sticker prices. This rise in the sticker prices was occurring at a time when other vehicle companies were reducing prices. The end result was that their prices were much higher than the competition. Because of this, often shoppers wouldn’t even consider a GM vehicle. Because of the economic recession and the way they were conducting business, they were forced to consider bankruptcy. At this time, they became reactors to their current situation. This is a good example of the benefits of good strategic planning. Had this been more thought out and planned strategically we could have seen a much different outcome. While their low interest rates and multiple rebates no doubt increased immediate sales the impact it would have on GM in the years to come was astronomical. 2. GM has set a goal for itself of making more than 10 billion dollars a year. As a result of...
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...Introduction International accounting standard No.2 (IAS2) "Inventory" gives the rules which should be followed during the recording and presentation of inventory. Inventory refers to goods which are held by a firm for sale, are in the production process or are materials which will be consumed in the production process or in giving out of services. This standard does not apply to financial instruments and it gives out a guideline on how to measure an asset which is categorized as an inventory, which concept constitute of the cost and at what time an expense occurs and the information that should be disclosed while preparing the financial statements (International Accounting Standards Board, 2008, p.977). History In the year 1974 during the draft of standard, the name was changed to "inventories" from "valuation and presentation of Inventories in the Context of the Historical Cost System" the first draft was affected on 1st of January in the year 1995 and this was 21 years after the first draft exposure. On 18th of December 2003, the standard was revised and took effect as from the strart of January 2005. In the year 2003, there was a revised IAS 2 whereby different cost formulas for inventories were incorporated into the standard. These were superseded from SIC 1 on consistency. On December 1997, SIC 1 was issued and was effective as from 1st January 1999. sic 1 required that that the same cost formula was to be used for inventories with the same characteristics under IAS...
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...Singapore Tax Rates and Income Tax System Introduction Singapore’s is one of the world’s biggest economies. Since the global financial crisis and more recently, the Eurozone sovereign debt crisis and the downgrading of the US credit ratings, many global and local investors has sought Singapore as a new safe haven for investing their wealth in and setting up businesses and regional headquarters. In 2010, Singapore’s economy has rebounded close to 15% year on year. Singapore, due to its scarcity of natural resources, depends heavily on foreign investments for growth and economic expansion. Therefore, the government’s policy is to advocate Singapore as a global hub for international trade and commerce. Over the past years, Singapore has always been ranked of one the frontrunners in the world in terms ease of doing business (1), world leader in foreign trade and investment (1), best investment potential for 16 consecutive years (2), most open economy for international trade and investment (1). Source: http://www.weforum.org/reports/global-enabling-trade-report-2010?fo=1 http://app.www.sg/who/196/Business-and-working-conditions.aspx http://www.doingbusiness.org/data/exploreeconomies/singapore/ Another significant reason Singapore continues to attract both local and overseas investment is due to its tax regime – well-known for its attractive corporate and personal tax rates, tax relief measures, absences of capital gains tax, one tier tax system and extensive double...
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...unemployment rates there are some steps. The first step would be government can increase government spending and reduce taxes, which will help increase AD (aggregate demand). Decreasing taxes will give households more disposable income with which they can buy more products. Through both methods of fiscal policy, the increase in AD encourages firms to increase production, which will cause them to hire employees, and increase incomes to enable them to buy more. As far as the monetary policy keep interest rates reduced. . According to (http://answers.yahoo.com/question/index?qid=20071005071712AAIn7rQ) With lower interest rates, aggregate expenditures on investment and interest-sensitive consumption goods usually increase, causing real GDP to rise. In other words Federal Reserve...
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...Introduction The U.S. economy is currently experiencing its worst crisis since the Great Depression. The crisis started in the home mortgage market, especially the market for so-called “subprime” mortgages, and is now spreading beyond subprime to prime mortgages, commercial real estate, corporate junk bonds, and other forms of debt. Total losses of U.S. banks could reach as high as one-third of the total bank capital. The crisis has led to a sharp reduction in bank lending, which in turn is causing a severe recession in the U.S. economy. This article analyzes the underlying causes of the current crisis, estimates how bad the crisis is likely to be, and discusses the government economic policies pursued so far (by both the Fed and Congress) to deal with the crisis. Housing Bubble Homeownership, (realtors) argue, is a way to achieve the American dream, save on taxes, and earn a solid investment return all at the same time. It's now clear that people who chose renting over buying in the last two years made the right move. In much of the country, recent homebuyers have faced higher monthly costs than renters, and have lost money on their investment in the meantime. Today, many homeowners are in up side down mortgages, meaning the purchasers owe more on their homes than what it is actually worth. In countless cases, it can be said that money has been thrown away, an insult once reserved for renters. Throughout the bubble period there was little if any mention...
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...Purpose of report Report is a form of logical expressions and organized. It consists of parts, titles and subtitles. For individual task, we, students BM2205E are required to observe any of ‘Customer Care Program’ of organization or any such programs that shows their effort to be close to the customer. We must choose two (2) organization from the same industry and do report based on their retention program. We need to compare between that two (2) organizations. In addition, we must also observe the impact it brings to the organization in term of performance and profitability. The industry that we can choose is either manufacturing, fast food, education, hospitality, fashion, entertainment, automotive or information technology industry. Reasons for written reports: • To know the background of the organizations • To analyse of business activities (customer care programs) • To provide information and facts • To identify problems • To propose solutions • To recommend actions to be performed • To concluded • To evaluate a research or activities • To synthesize a plan of action Introduction Customer care is also known as customer service. It is a process providing utilities of time and place for customers which included pre-transaction, transaction and post-transaction considerations relations to the exchange process with the customer. In other word, it is the provision...
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...and land which forests could be destroyed. There is also the issue that ethanol does not produce enough energy causing a lower gas mileage than gasoline in vehicles. Gasoline can be shipped through pipelines, but ethanol needs to be shipped by truck, barges, or railways. Since corn is usually in most food products, there could be a rise in food products, due to the shortage of corn. With all of this I would have to say I support oil subsides for companies instead of for ethanol, oil is easier to obtain than ethanol. I would only agree in increasing the gasoline tax, if the tax revenues are used to come up with a plan to stop global warming. The only problem that I see with raising the gasoline tax is for the individuals who are already struggling in this economy. If the tax rate was to rise, it would lower the consumption of gasoline, lowering the greenhouse effect, and lowering our dependence on foreign oil. Looking at the gasoline tax as economist, the government could lower the income tax rate to help offset the gasoline tax, and to help boost the economy. If I agree that the gasoline tax should rise, than the carbon tax should rise also. But the carbon tax should also have the offset of the income tax to help with low income families. Again with this tax, the consumption of the fossil fuels will go down, which in turn will lower our dependence on foreign oil. I believe that car manufactures are being forced to create more fuel efficient vehicles, and they should...
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...According to (Omkar D. Palsule-Desai 2012) a SC is perfectly coordinated when the decisions on optimal quantity to be ordered by retailer under decentralized setting equals that of centralized one and yields non-zero profit to both players. There exist two common structures for SC management: Centralized or integrated supply chain with the single decision maker and decentralized with a network consists of multiple decision makers having different information and incentives. Evidence exists that centralized structure is the ideal status of the SC when there are more than two decision makers since otherwise the profit would be less than optimal.( Tirole1990, Corbet and tang 1999,corbet et al 2004) Decentralized decision making gives rise to problems causing sub-optimality: double marginalization (Spengler 1950), high inventory holding costs (Boctor et al. 2004),low response time and flexibility (Iyer and Bergen 1997), opportunism created by bilateral dependent relations (Williamson, 1996), risk and vulnerability (Pfohl et al. 2010) , excess inventory, lead times, lost sales, manufacturing costs, customer retention, and revenue enhancements (Fisher et al. 1994; Lee et al. 1997) and etc. SC...
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...Alternative fuel Opportunities "Most of the observed increase in globally averaged temperatures since the mid-20th century is due to the observed increase in anthropogenic greenhouse gas concentrations"(E.E.R.E.) If there isn’t some form of a major change in the way we use, renew, and obtain energy our world will be severely effected. By 2100 if we continue at the rate we are going with fossil fuel abuse there will be an average increase of forty-eight-degrees Fahrenheit to the global temperature (E.E.R.E.). Many people believe that the effects of global warming are not going to occur until centuries from now, but reality is that there are changes already happening. Sea levels are currently rising due to glacial retreat and arctic shrinking (E.E.R.E.). There are also severe long term effects. Some major events would be severe weather events such as an increase in the more violent hurricanes and tornadoes, reversal of seasons, and even sever economic depression due to a decrease in crop production. There are many different solutions or alternatives to our current declining global situation. Cars can be powered by bio diesel, ethanol, electricity, fuel cell, hydrogen and a combination hybrid (Alternative Energy). The possibilities are endless for future possibilities to fuel our power hungry world. All it would take for our ecosystem to be saved is a little time and a slight bit more money, if nothing is done future generation will perish. A large portion of our global warming...
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