When consumers have a positive outlook on the economy they are more likely to purchase more products from staple stores. 1.1 Economic Factors The consumer staple from a macroeconomic standpoint is a very stable sector because it provides consumers with the basic necessities that people have made a part of their lives. This includes food, tobacco, drug retail, food distributors, food retail, brewers, distillers and vintners, household products, personal products, soft drinks, and agricultural products. The best time to buy a consumer staple is at the peak of a recovery. Staples perform well during recessions because
Financial Statement Paper P Agnes Pierre Louis ACC/280 September 26, 2011 Minh Truong Financial Statement Paper In today’s business world it is required to keep an accurate account for assets and liabilities of each company. Good and ethical accounting practices can build the base for a strong and profitable company if the information is used properly. The definition of accounting is obvious but one most know the purpose of accounting which will be covered in the following paragraphs. There are four financial statements that are prepared by companies in today’s society as a form of reporting accounting companies. Those statements are income statement, retained earnings statement, balance sheet, and statement of cash flows.
TNCs can have a powerful influence on both local economies and international relations. They continue to play an important role in globalization. It can be seen that TNCs have grown globally due to the competitiveness of international economies and the way in which they can produce and trade cheaply and easily. Often TNCs such as Nike, Dyson and Tesco have their headquarters of their corporations in MEDCs, for example Nike’s headquarters are based in Oregon, USA. They reason for this is that they are based in areas where they can hire skilled and educated workers.
Having such “space-friendly” package allows the warehouses to contain sizeable amounts of furniture and trucks to transport significantly much bigger quantity. All of this process reduces the overall cost of storage and transport, therefore, creating a core competency for Ikea. Furthermore, considering the fact that customers have to mount their furniture themselves automatically induces that Ikea won’t need any employees for the assembly like most shops do. This allows Ikea to concentrate their employees in different tasks, saving them a lot of money. The only counter-part of this aspect would be the fact that customers have to take time mounting the furniture, which Ikea considers being a source of fun and a social activity.
Guillermo’s Furniture Store refers to the situation as an unused opportunity as an opportunity cost, which includes using different business tactics to increase business profit (Emery, etc., 2007). An opportunity cost is the difference between the value of one action and the value of the best alternative, which provides an indication of the relative importance of Guillermo’s Furniture Store decision on the coating. Especially, when the opportunity cost is small for Guillermo and may lead to the cost of an incorrect or correct choice to be small (Emery, etc., 2007). On the contrary, when the opportunity cost is large for Guillermo’s Furniture Store, such as adding the flame retardant, the cost of not making the best choice is large (Emery, etc., 2007). Guillermo needs to analyze thoroughly that there are at least two sides to every transaction, and the parties on the other side can be just as bright, hardworking, and creative as the ideas for Guillermo’s Furniture Store (Emery, etc., 2007).
| Quality of financial system in which country the company is operating, i.e., how available debt is. | Source: Financial Management; Theory and Practice http://creditexpert.dnb.com/small-business-information/the-difference-between-business-risk-and-financial-risk/ b. When a company only finances through equity total risk is defined by business risk. But when it is the combination of equity financing and debt financing, total risk is the combination of business risk and financial risk. Total risk can be measured by company’s Return on Equity (ROE).
This makes this type of remodeling job very popular. It means you do not have to be rich to substantially expand your living space and improve your quality of life. This space can be fairly readily turned into whatever you so desire. Your remodeling dreams can become a reality by considering the square footage below your feet. It can go from being a place where you store items you a rarely need to the most used room in the house.
The switch is easy and cost-efficient. c. the ratio of fixed to variable costs is high: Inventec has to reduce prices to utilize installed capacity. (e.g. its new manufacturing compound in Pudong, Shanghai) d. OEMs own the distribution channel and make the rules. 2.
These products have low prices as a result of IKEA’s core competencies. The assemble-it-yourself furniture concept made it possible for IKEA to reduce cost, as it does not have to take extra time and money to assemble the products. The assembly process is left for the customers to do at home. This minimizes the cost of labor and operation costs, making it possible for IKEA to sell these products at a low price. The furniture showroom/open warehouse is a unique store concept that people find an interesting and effective way of shopping for furniture and in-house products.
Deutsche bank is diversified into three group divisions, which are Corporate and investment banking, Private clients and Asset Management, and Corporate investments. Corporate and Investment banking “The Corporate & Investment Bank Group Division, or CIB, is responsible for Deutsche Bank’s capital markets business, comprising the origination, sales and trading of capital markets products including debt, equity, and other securities, together with our corporate advisory, corporate lending and transaction banking businesses” (db.com). CIB is subdivided into two divisions, which are, corporate Banking & Securities and Global transaction banking. Corporate banking and securities “covers Deutsche Bank Group’s origination, sales and trading of securities, corporate advisory and M&A businesses worldwide”(db.com). Global Transaction Banking covers Deutsche Bank’s cash management for corporate and financial institutions, trade finance business as well as trust & securities services.