For instance, it can make use of technological advances to better its products and win more customers. It can also use marketing strategies to increase awareness to the customer. The company makes use of high skilled human personnel in its operations (Coyne, 1996). This way, it is able to produce good quality products and better services. The main weakness lies on the external factors such as government regulations and culture of the people.
A large number of people understand the need to understand and adopt new innovations when they are beneficial but not many understand what happens when such innovations do not succeed. Researchers know that such letdown is important knowledge because it can either add to the next great success or give key potholes to avoid when developing their own products or services. In either case success and failure equally have a beneficial impact on the development of the economic market. Even when innovations do not succeed organizations they would do well to attempt to gather this information in an attempt to incorporate such findings within their own innovative processes. At times such failures can direct to higher levels of development and better understanding at less cost to the researching organizations.
A current account deficit means the country imports a greater value of goods and services than it exports. To reduce a current account deficit we need to either increase the value of exports and or reduce imports. Supply side policies aim to increase the productivity of the economy. If the manufacturing sector becomes more productive, the relative cost of British goods will fall and therefore they will become more competitive. This will help increase exports and reduce the current account deficit.
This would be good for Tesco if they wish to expand at present. If interest rates are low then Tesco will be willing to borrow as they feel that they can afford their repayments. This will increase demand for goods and services within their business and help economic growth. Government support – The Government provides us with new road networks, rail and
The management believes that the investment made by the company to expand will increase its market share and be more productive than competitors. They also believe that the newly developed products will render the competitors products. In addition to that, the company’s future is seen as bright by management and shareholders. 3. In theory, to fund an increased dividend payout or a stock repurchase, a firm might invest less, borrow more, or issue more stock.
Time is a very important factor in today’s working environment. Testing can reduce the time spent on applicants whose characteristics, skills and abilities do not match what is needed. The process can help reduce a multiple candidate list to a shorter more manageable and suitable candidate file. Research has shown that through testing, businesses have been able to improve the quality and duration of employment for new hires. With this as the case, there is an improvement in the desired business outcomes: lower turnover, increased sales and profitability, higher customer satisfaction and higher productivity.
Companies will know where they can maximize these profits. Also consumers spending can be predicted off what provides the greatest utility or satisfaction. Because of the laws of supply and demand, it is better understood when to produce or offer goods and services and when it is better to produce
See Exhibit 1 for Airborne Cost Structure. The company’s cost structure can be severely benefited from higher volumes to spread fixed costs more effectively. Investment Airborne Express must invest to automatize its sorting process. This will allow packages to be sorted quickly and with less opportunity for human mistakes, making on time deliveries more reliable. An automatized process will be more cost effective and will also permit to have less overhead, therefore reducing the labor risk of unionized employees demanding privileges through stikes or walk outs.
Cost of capital at Ameritrade Case Analysis Ronnie Salhov 30141718 Ameritrade’s case study deals with the issue of another decision criteria when it comes to choosing whether to take on an investment or a project. The proposed investment is made in order to get closer to achieving the company’s objective, which is to become top at the discount-brokerage industry. It plans to achieve that goal by increasing its consumer base. This can be done if it improves its technologies to be able to provide to its customers a service that will be faster, easier and the most safe and reliable existed among its competitors in the market. This, of course, will be provided by the lowest price possible.
Second, a high-wage economy can induce a regime of rapid technical change, and firms faced with high wages are forced to employ more advanced equipment and eliminate inefficiency or leave the industry, which results in a more productive society because companies are forced to embrace new technologies and processes. In the end, these new processes are disseminated throughout the economy. Third, the minimum wage is one among a number of factors that has the capacity to equalize bargaining power in labor markets, and enables people to 'earn a living,' which is an elementary component of human dignity and social justice.” Since the initial passage of the Fair Labor Standards Act of 1938, economists have generally been opposed to the minimum wage, and today, this consensus is the same as most introductory textbooks will indicate (Prasch). Prasch notes that over the last half century, “it has become an article of faith that any floor or ceiling placed upon a supposedly autonomous and self-ordering 'free market' will lead to a substantial misallocation of resources' (Prasch). Regarding the minimum wage, market intervention is thought to