Explain the term ‘globalisation’ and the role that multinational companies play in the development of globalisation. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services and has therefore lead to increased trade between countries. This trade encourages countries to work together and removes trade barriers such as quotas and tariffs. This increased openess allows countries to specialise in producing goods which they have a comparitve advantage in (this means they can produce goods at lower unit costs) A multinational Company is a corporation that has its facilities and other assets in at least one country other than its home country.
There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices. This is what some firms in the leisure industry will aim to do, for instance, Cinemas will hope to achieve the highest level of profits. Although most firms in the leisure industry aim to maximise profit, some firms have other main objectives, such as to maximise growth. Growth maximisation is where the firm’s main goal is to increase the size of the firm as much as possible.
This way they will be able to gather all the money they need in order to expand the company. By expanding the company they will be able to have the opportunity to reach out for more potential customers. Leading the company to an economic success, Kudler as well could consider the possibility of acquiring another organization in the same industry. The opportunities the company will face taking this decision might as well increase their monetary income in a good way. Having at their side another company advertising and selling their products will provide the opportunity to expand their market.
A type A merger would increase market power which would increase market share. Increase in market share would increase profitability. A merger is also recommended because with Smithon’s positive income can offset with Johnson’s negative income and would result in reduced tax liabilities. A merger redefines the business world which allows for improve corporate business strategies and philosophies along with stronger alliances and less competition. There are many reasons for a merger but the most important is to maximize its profits.
Promotion Excess money stemming from a hopeful investor will allow there to be more funds for advertising and sales promotions which will in turn create more revenue through sponsors. The more financial benefits that the Rays obtain, the easier it will be to promote the team in the long run. However, for the short run, stadium promotions such as “hat night” or in game promotions such as raffle tickets for the fans and randomly selected seat upgrades should be implemented as a start to generate more overall
A company's debt-to-equity ratio will usually improve after going public, which tends to result in more favorable financing arrangements (2014, Going Public, para 1). This will be a good move for Kudler to help expand their brand to different locations. They have already maintained the San Diego metropolitan area; therefore there are more markets to conquer as well. Also, maintaining control is important: In most cases, Venture Capital investors will want to appoint someone on their team as a member of the board of directors. Moreover, they usually
This program will keep track of individual customers purchasing behaviors, which will allow Kudler to know how much of a certain product to stock. This could also determine manpower needs for certain days of the week. Just by increasing efficiency on these two topics will increase revenue by cutting out under or overstocking as well as overstaffing. This program may also increase the number of loyal
Company G has prided itself on cultivating relationships with it's suppliers built on honesty, confidence, and allegiance in order to facilitate profits for both parties. However, as popularity may grow for the product so too may the market and suppliers might consider increasing costs, in which case a fixed contract would be discussed. Threat from Substitutes – If the Little Wonder does prosper their may be threats from substitutes from larger companies that are able to produce a similar product on an increased scale thereby reducing it's price and making it difficult for Company G to compete. SWOT Analysis A SWOT analysis has been done for Company G and the outcome is clearly positive. The details of that evaluation: STRENGTHS Dedication from management, employees, and suppliers 1.
By consolidation and retention of the competition, Service Experts was able to capture market share in the HVAC service. Service Experts made a brilliant move on the behalf of obtaining contractors that they have groomed and set up for success. This drove the growth strategy for the company, acquire and conquer are strategies that are used all too often in business. It can be seen as a process of forward integration, but in a service based module, and not a manufacturing base sense. The growth strategy of capturing market share and growing revenue to increase business presence in the market was achieved for Service Experts.
The ability to tap into the global labor market will make the company more competitive by being able to offer competitive prices on products due to lower overhead cost associated with the offset in the labor cost. Attracting employees to join the company is the better option unless there is a management position that requires exceptional talent to fill the position. Relocation of prospective employees can be costly to the company and there is no guarantee that they will be long term employees of the company. With the company's plans for expansion I would recommend overstaffing. This will allow the company to stock pile talent for future