Benefits of globalisation to consumers/individuals The most obvious benefits here is cheaper prices, globalisation leads to increase competitiveness which leads to price cuts and as a result of this consumers benefits from cheaper prices(Kahn, 1998). Globalisation also gives consumers a more varied selection of products. And it increases the purchasing power of an individual. For example, if I earn 100 euro a month and 50 euro goes towards my groceries I only have 50 euro left to spend but when the likes of Tesco, Lidl and Aldi enter the market I now only have to spend 25 euro to do my shopping and I can easily shop around and compare prices and now I have 75 euro left which means I can now afford to buy more with the same 100 euro than I could before these foreign companies entered the market. However some argue that if foreign competitors enter the market and dominates the market share they may then raise the price or worse move to a cheaper economy to cut cost leaving consumers with little or no choices and higher prices set by domestic companies.
Consumers would normally spend on the higher utility and in this instance that product is product A. However, the more customers purchase product A, the extra satisfaction will decrease and the utility of B will increase since you will now hardly have a demand for it. Equilibrium will be restored as one utility goes up, the other one goes down. Let us assume the income of the consumer goes up by 5%, this will mean: Income =$100 + $5 = $105.00 Product A $ 5.00 per unit Product B $11.00 per unit With an income of $ 105.00 a consumer can purchase 21 units of product A and 9 units of product B (yellow line) There was an increase in purchasing power for the consumer, however because the price of A was lower, the consumer substituted, since the price of B increased the extra money will go to this product, thus maintaining the same bundle, and an equilibrium state will continue to remain. 2|Page Question 3 ISOQUANTS In Figure 3.0 although points A, B, and C all involve different combinations of capital and labor, output is equal to Q0 with each of these combinations.
At KFC, they added a breakfast menu and lowered the price to match what local cafes were offering. This offered locals an alternative to traditional breakfast street food and also capitalized on the fact that there was a big increase in young urban workers. By focusing mainly on the employees in the local markets instead of centralized research, Yum was able to isolate and allow the workers to generate new innovative ideas. In each local market, the brand could focus on developing new items that were unique to their country, but still had to follow a set of guidelines of global standards which allowed Yum to reach economies of scale. By utilizing CHAMPS, Yum is able to maintain cleanliness,
That’s why the Walmart management started to plan a slower new store growth, so that the impact of new stores on comparable store sales will be stabilizing over time. Walmart International includes numerous different formats of retail stores and restaurants that operate outside the United States. The volatility in currency exchange rates may impact the International segment’s net sales. For example, the net sales in fiscal 2009 increased due to their global expansion activities and comparable store sales increases. The figure is however offset by a $2.3 billion unfavorable currency exchange rate impact.
Mechanically how is your strategy different than your best strategies in 4a Strategy 6 : Inventory Management in Price Cutoffs = 10 could be improved with a small tweak on the preloaded strategy. The cutoff could be reduced from 10 to say 5-6. Why does the change in 5a work better? With the tweaked strategy 6, the reduced cut-off will ensure that the inventory be cut down quickly when the overnight volatility and order processing costs are relatively high. The bid-ask spread is also a cost to the dealer.
However, the business students came up with a different suggestion. They only look at the profits and asked them to focus on producing the McDoogle pies in a large scale. Then they sell them to the local grocery store. This strategy violates the original thought of Elizabeth and her friends that they would like to concentrate on traditional baked and delicious goods, so it’s wrong. It may lead to the failure of the company.
Buyer Power Broadway Café is no longer unique commodity. With the Starbucks being on just about every corner and McDonald’s even offering specialty coffees; the buyer is overload with choices and availability. In order to save my business, I must create a competitive advantage by developing a loyalty system. My loyalty system will need to attract the buyer to my business more often that my competitors. Since I am small business, my loyalty program cannot be large scale.
Starbuck’s case What went wrong and what would you recommend for improvements? Stock price plummeted Starbuck’s experience lost its flavor Competition from below and above Too much real estate, too fast : Recommendation : starbuck’s stores cannibalizing each others sales => relocate Starbucks’s stores strategically It was as an upper class coffee chain that they first made their mark and was what defined the success of the company. Sure people were aware that the beverages at Starbucks were more expensive than at many cafés but they still frequented the outlets, as it was a place ‘to see and be seen’. Setting up a brand as a symbol of status has served many companies well but if the company becomes too commercial and widely used it will lose much of its’ initial appeal. After all, if every second person appeared to be wearing Armani clothing, would anyone pay $400 for an Armani shirt.
Therefore two objectives have been met. However, the diagram also shows a conflict. With higher AD there is also demand pull inflation.The extent of any economic growth depends on the elasticity of the AS curve. If there is a small output gap and a more inelastic AS curve then the impact on economic growth will be smaller but there will be more inflation. This is unlikely to be the case in the UK at the moment as low interest rates and a large budget deficit has not cause significant inflation.
The book Fast Food Nation would open the eyes of most Americans to behind the scene of fast food. The type of workers they employ, and how the government is connected to the industry. The workers of the fast-food industry are treated with bad ethics. The fast-food industry likes to hire young, poor, and handicap people. They hire teenagers because they live at home and do not have any expenses, therefore, they work for less money.