Making the customers aware of the fact that we are not profiting out of making business with them and asking them to contribute towards more profitability or at least a break even in some of the cases would help a great deal. 3. RENEGOTIATE YOUR VALUE PROPOSITION – reconsidering your value proposition that we are offering to the customer is also an option where in we can change the value we have been offering to adjust for profitability. 4. Migrate Customers – creating a scenario where in we could migrate some of the customers or products and make a diversification 5.
There are also many issues involved in resolving legal disputes in international transactions. Some of these issues can be, but are not limited to enforcing binding agreements and applying which country’s law to resolve the dispute. When there is an international legal dispute and the dispute goes into arbitration there is no guarantee that the losing country will comply with the binding outcome of the arbitration. It will be up to that government to enforce the company to abide by the agreement. There are various ways to get the governments to abide by the
So just as profits reward producers for making things people want to buy at prices they are willing to pay, losses punish producers for wasting resources and producing things people don’t want at a cost consumers are not willing to cover. Negative profits and business failures serve a productive function in the process of business growth and development. When one business enterprise in a market economy finds a way to lower its costs, competing enterprises have no choice but to scramble to try and do the same. Any change in the economy, such as an increase in demand for a product, requires further changes and adjustments in many aspects. Any kind of change in the output of one product will most likely require changes in other markets, as well, and will start a chain of adjustments.
For the firm’s partners, the goal is to free their minds and time for more productive activities and ensure that their business is providing shareholders with the revenue needed to compensate staff appropriately and plan for the practice’s growth and the partners’ retirement. EFFECTIVE PRICING Pricing is an art, but many CPA firms treat it as a science. Firms often use a time run or fee chart to determine a bill rather than taking the time to understand the value of the services they provide. Exhibit 1 presents a list of pricing techniques. CPA firms need to review each service they provide and price
Angela’s ethical dilemma is that of adhering to the confidentiality requested of her by her firm vs. listening to her moral compass and looking out for her friend by warning him. Figure 2.2 How to Face an Ethical Dilemma (Exploring Business, 2014, pp. 14, 15) would be a valuable resource in identifying how Angela could handle the situation. Step one (1) states Define the problem and collect the relevant facts; Angela has to choose between loyalty to her organization or loyalty to her friend. Step two (2) Identify feasible options; Angela can choose to tactfully warn her friend or leave him completely in the dark in spite of the financial strain he could place his family in due to being laid off.
Cultural issues within global organizations When doing business in a global organization it is very important for one to understand the cultural issues that one might face during the processes of doing business. By understanding what it is, is the key component in any successful business. What works well in your country might not work well in another. By understanding the different roles is the best key to success. It is vital for a global organization to understand obstacles in managing international businesses such as the difference in language, culture, religion and traditions within the country.
Being reactive or proactive is not just a mind-frame, it is also a potential business strategy depending on what the situation calls for. Reactive is when you react to situations affecting your business. For instance, say your competitor lowers the price of their goods. Your natural reaction is to cut down on prices too. This may seem like a viable solution at first, but reacting to situations the same way at all times may not the best solution for your business.
Addressing International and Ethical Legal Issues What are the issues involved in resolving legal disputes in international transactions? When a business operates internationally, they inevitably will be faced with the task of confronting legal disputes with their international partners or within the host country they are doing business. These situations will demand that certain issues be addressed in order to resolve the dispute. Issues such as the legal forum of resolution and the applicable local or international law will be relevant concerns when resolving legal disputes, and should be known by the commercial participants prior to the occurrence of a dispute. In the case of the course material simulation, a question posed to the student related to which forum a complainant should refer their case in the event of a legal dispute between CadMex, a U.S. based company, and Gentura, a company based in the Southeast Asian country of Candore.
The study of global business is relevant to any person who is in the business world, no matter the size of their organization. The first reason is that so many things are imported from other countries. Closing a deal in China will be a very different process than would be in France than it is in India. Customs of other countries need to be followed if a businessperson is to be successful worldwide. Also important to consider are the difference in shipping costs from different ports, as it will change the “landed cost” of the item, and the retail price and profit margin.
Organizations looking to make substantial profits could possibly be willing to push those able to pay hefty prices for organs to the top of lists causing those in need to go without and ultimately die. That situation would be a matter of business ethics and in my opinion goes against moral standards which take priority over other standards, including