In addition, such a development could cause financial and capital markets within and outside Europe to constrict, thereby negatively impacting our ability to finance our business, and also could cause a substantial dip in consumer confidence and spending that could negatively impact sales of vehicles. Any one of these impacts could have a substantial adverse effect on our financial condition and results of operations.” (www.sec.gov) I believe this statement represents the Political PESTLE force for Ford Motor Co. because it demonstrates the company’s vulnerability in the global economy based on the financial stability of countries and regions in which the company operates. Whether the financial instability is due to political unrest, economic turns, or other factors, it is a major contributor to the company’s success. Ford must pay attention to the well being of the countries in which it operates,
They assess potential risks before making investment decisions which is shown through Bob and Maggie refusing to take out a loan when they don’t have the means to make repayments as the majority of their money is tied up to their inventory, and their inventory faces a huge unpredictable risk from the weather. In addition Bob and Maggie both have calculations and predictions made using information available to them showing efficiency and awareness of the market conditions; alongside this Maggie’s conservative nature in regards to cost saving has helped them garner up more cash. The company’s weaknesses seem to be their low liquidity levels, which could see them in financial difficulty in an unexpected change in the market conditions, or potentially hazardous weather that could damage their inventory. To add to this risk Maggie has a strong deterrence towards any type of debt financing. 2.
Economics Economic conditions can affect businesses in many ways. The basic concept of economics is how a country takes it resources, makes something, and distributes it to others for consumption. Global economics and politics play a vital role in today’s market because so many companies participate in free trade. It is very important to stay informed of global and national economics to be competitive (Nickels, 2012, p.30). Business is not only for the business owner, it also contributes to the economic growth of the community in which it operates.
Further more , at this point every small business face trade-off , people running small businesses make decision for changes in strategic by comparing benefits and cost at the margin , as long as the marginal profit exceed the marginal cost . It can increase the cost of running the business and to keep their business profit stable, the opportunity cost is that employers may not be able to employ as many employees The higher minimum wage make less skilled workers become useless and benefit the better skilled workers. In the price floor analysis, if the minimum wage is above the equilibrium level, the quantity of labour supplied is larger than quantity demanded .Finally the consequence is unemployment. Therefore the
The economy is not run by a single entity, which means that it is the individual or individuals that are driving our economy. The difference in motives and operation styles from company to company will mean that there are flaws within the economy. In a time of recession and high unemployment this has to be complemented in another way to counteract the recession and promote economic growth. The classical model is an accurate indication of the economy if businesses were operating as one entity, or under government control, which is not the case in our society. Supply does not match demand because the goal of the production entity is revenue and the goal of the consumer is spending.
This power is much too overwhelming, because of the outrageous detriments that it could have on the economies of the world. Many large corporate monopolies are detrimental to many economies around the world, because, as a result of their misuse of power, monopolies have no incentive to improve or do more than what is necessary; they have extremely high prices at extremely low supply, and they do not use resources efficiently. These three factors could lead to much inefficient use of the limited supply our countries have, as well as decreasing GDP because of the lack of spending due to the extremely high prices, ultimately decrementing economies around the world. With less or no monopolies, economies and consumers can finally breathe easy, without the fear of high prices or inefficiency. First, the many monopolies in the world are detrimental to the economy because the lack of competition gives company little incentive to do more than what is needed.
Even with bartering and stealing the resources are low and they are costing them more than they can bring in in revenue. In addition, Robin Hood has become unfamiliar with all of the Merrymen due to their size of the group. This is causing vigilantes and uprisings that threaten the existence of the group. Assisting King Richard could cause an uproar in the group because it is potentially going against their mission, and if double crossed by the King and the Barons the group would no longer exist. If helping is the
Not when prices would have to fall over 90 percent if they’ve been set in terms of Bitcoin. Falling prices sound like a good thing, but they’re not. If prices were to fall then people would procrastinate on buying things, when this happens and companies notice then companies stop investing. If companies where to stop investing, if that were to happen then the economy would get worse and people would get in debts that they can’t afford to pay because of the economy. If that was ever to happen then banks would not profit, which would lead to banks being afraid to make loans which would just make the economy get worse and prices would plummet.
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. Although the international business differs from the domestic business due to the reasons below • Countries are different in a range of ways: cultures, political systems, economic systems, legal systems and levels of economic development. • The range of problems confronted in an international business is wider and the problems nmore complex than those in a domestic business. The managers of an international business must decide where in the world to site production activities so as to minimize costs and maximize value added. They must decide whether it is ethical to adhere to the lower labor and environmental standards found in many less-developed nations.
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.