Suggest why some people and not others benefit from the growth of Transnational Corporations (TNCs) Some people benefit from the growth of Transnational Corporations than others. MEDC’s benefit from the growth of transnational corporation because of cheaper imports from LEDC’s which benefit the consumers in MEDC’s as the prices will be cheaper, resulting in high produce, cheap price and ability to appeal to its market and compete with other companies. Another benefit of TNCS is that the loss of industry to LEDC’s can improve the environmental quality in MEDC’s, therefore reducing their CO2 emission and helping combat climate change. LEDC’s do to some extent benefit, as the workers has access to employment and the development of new skills. This will mean the population will have more money which will go into the economy, this will mean more income for improving infrastructure and services.
The reduction in the network miles will improve fuel efficiency and reduce the carbon footprint. Packaging which should be part of the consolidation has an impact on wasted transportation capacity too. Using larger packages filled transportation equipment, warehouse space, and retailer selves more quickly than necessary. The net result will be a lot of “air” and wasted space. George and Jeff can reduce this waste by using smaller packages which will improve capacity utilization in transport equipment, warehouses, and retail stores.
His objective is to not only improve, but to transform the entire corporation and give the customers a better experience. He plans to do that by simplifying the pricing strategy, slim-down, but improve the brands and quality of the merchandise, and change the stores’ layout. What caused this change, to JCPenney Corp., were the past year’s revenues and profits. They were lower in 2011 than they were 15 years ago. One of the two ways JCPenney, as a corporation, got customers in their stores was by having promotions.
Outsourcing brings proven benefits in the form of economic leveraging, increase in the quality of products and it provides a number of opportunities to less developed countries. For example in recent times, Americans are overwhelmingly supporting the major retail stores like Wal-Mart, Target and K-Mart. The reason behind this consumer loyalty is that it has become much easier to shop at these locations rather than the local mom and pop stores located on the corner of most neighborhoods. The benefit is that you can purchase everything on your shopping list from one location, saving you time, money and gasoline. In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost.
Coca-Cola is probably doing better now and will probably do even better financially in the future because of all their new products. Since they have started to decrease the sugar and calories in many of their products, it is helping the society to decrease obesity with their drinks and also is helping their company to do better since their consumers want to buy their products. In the book, we talk about sustainability. I believe that Coca-Cola’s new products, new commercial, and new perspective is sustainable. As stated in MKTG, sustainability ‘refers to the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time(p.38)’.
* Convenient logistics and short delivery time lead to quick market response, lower inventory and higher customer satisfaction. * Intellectual property and the manufacturing technologies can be better protected. * Products “made in USA” give customers more confidence and may generate extra appreciation. * Large customers, like Walmart, Target and Bed Bath and Beyond are expecting the products to be local made. * Effectively avoid the potential vendor trust problems and supply chain risk is lower.
The penetration price strategy also favors Wal-Mart’s business approach of low costs products and services. Wal-Mart customers’ expectations are quality products and services at a price that is marginally lower than the competition. The penetration strategy can significantly increase the lifetime value of customers, because they are “hooked” with the outstanding initial service offering. This approach also provides Wal-Mart with the additional business to remain in the maturity phase of the product life
Walmart has taken sustainability policy for being a greener company to address its environmental stakeholders. The company has taken environmental leadership policy to achieve sustainability objectives. 3. Why has Walmart tended to improve performance while other retail outlets have been suffering financially? I think that one of the biggest factors in Wal-Mart’s improved performance while other retailers are suffering financially is Walmart's everyday low prices strategy along with the position they take about their customers.
The rapid and enormous expansion of Wal-Mart and its market share have changed the landscape of Main Street in towns and cities across America. By 1981, Wal-Mart became Americas largest retailer. It has approx. 6,700 stores worldwide, $345 billion in net sales (2007), and roughly 100 million weekly customers. Wal-Marts massive footprint has had three primary areas of concern: 1) Putting local small business merchants out of business 2) The creation of urban sprawl 3) Traffic congestion In the mid 1980′s, Wal-Mart was becoming responsible for the loss of American jobs due to the sheer volume of foreign purchases from its overseas vendors.
Walmart: The Future Is Sustainability Jane Doe Ethics in Today’s Organizations February 23, 2013 Walmart: The Future Is Sustainability A. Summary: In 1962 the small town of Rogers, Arkansas become home to the first Walmart Discount Store. With very little money Sam Walton founded what would become one of the largest retail establishments in the United States topping the Fortune 500 and earning the title of “most admired company in America” two years in a row (Ferrell, 2013, p.329). The small hometown discount store has evolved from a small local chain to an international phenomenon now serving over 200 million customers weekly from over 8,000 facilities in 15 different countries (Ferrell, 2013, p.328). The fast growing success of Walmart can be attributed to Sam Walton’s firm belief in customer satisfaction and hard work (Ferrell, 2013, p.328).