When companies can produce more due to demand they are able to hire more workers, which can lower the unemployment rate. Lowering the unemployment rate will provide more income tax revenue to the government and fewer citizens taking unemployment benefits. Conversely, when exports decrease consumers pay less money for products causing domestic profits to decline and companies are unable to maintain or increase their workforce causing the unemployment rate to
SWOT ANALYSIS OF ATNT: (Slide is at the end of doc) STRENGTHS: * Geographically diverse business Geographically diverse business and revenue should help shield the business from shocks in any one part of their business. Different countries or locations around the world have different characteristics. Those characteristics do not always match; therefore, a company can lower their risk by investing in part of the world with low correlations. The lower the risk, the better. This lowers risk and increases the value of the business over the long-term.
The budget is important for Tesco to consider when planning HR, this is because if they do not have a large budget they would need to have a smaller workforce or lower wages to cut costs. Tesco is a huge company they have store all over the world, so it would be easier for the company to employ more workers. It is important for Tesco to consider skill levels, as this could be another way to save money if they employed people with many different skills, as in the future if somebody leaves a job role and you already have somebody employed that has the necessary skills to do the job they can go into the job easier and more naturally than someone outside the business. To get the most out of their workers, Tesco try to create the most positive workplace possible by offering some of the following: clear job descriptions and annual reviews, a wellness program, morale-building activities such as contests or outings, an employee newsletter and frequent communications about individual, these things will improve productivity because employees work better when they're happy. Political factors are important for Tesco to cover when planning HR, From a shift in local public opinion to a change in government or even a new industrial world superpower entering the market, politics influence how much funding is available, how much tax must be paid, minimum wage rates, how markets are controlled.
Two disadvantages to automation are that it costs more and it is not easily changed. 6. A products margin is determined by subtracting its manufacturing cots (labor and material) from its price. Logically, higher prices and lower labor and material costs result in higher margins. Keeping in mind the customer buying criteria, how would you increase margins for a low end product?
How has technological innovations affected your organization? Technology impacts the cost of production. Technology helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Producers learn more about various aspects of production in which they specialize, and this attitude of them leads to more production. Innovation impacts the cost of production as well.
One of the reasons companies outsource workers, and thus help imperialize foreign countries, is for cheap labor. Western corporations can have multiple sources for a given item, in order to allow continued production once one region realizes it is being treated unfairly and strikes. Oddly, it is argued that these companies could survive without any foreign connection—capitalism without imperialism. But, this would lower profits and prevent “advanced capitalism.” The decision to claim that cultures with what is considered modern technology is defined by military power rather than which culture is actually superior. It is this force that essentially created this gap.
As the time horizon increases, variable costs rely less on existing factors and restrictions and therefore will begin behaving differently which will in turn affect the cost of production (Wright, 2007). The second way a firm that’s into profit maximization can decide its greatest level of output is by way of the marginal revenue -- marginal cost method. This is done by subtracting the marginal cost from the marginal revenue that a product generates. Using marginal cost and marginal revenue as the bases, profit maximization will be obtained at the point when marginal revenue is equal to marginal cost. If the marginal revenue is greater than marginal cost this would be when a profit maximizing firm would need to increase production until marginal revenue is equal to marginal cost.
The unionized labor agreement stated that the company cannot use inexpensive labor while their current employees perform duties while reducing cost. The company is considering moving its operation elsewhere this relocation could provide an opportunity to reduce cost, as opposed to expansion of the existing plant. The company can take advantage of the market conditions in Mexico and the other movements that will be taking place with the move to be more competitive. In some situations it costs less to start over in a new more affordable place than to repair the current facilities and there are newer machines, new processes and new plant layouts that may improve productivity and the quality of the products. All of these benefits can make a new facility look like the best choice.
Another influence is what they hold in a current account could be considered a deficit which means the country is spending more on foreign trade than it is receiving. This creates a supply of their own currency than a demand for its products. According to our text, Mankiw, (2007) 1. Consumers are wealthier, which stimulates the demand for consumption goods. 2.
This shifting of the labor market has other effects too, outside of the labor market. Chapter 15 brings up externalities and there are negative externalities associated with the globalization of trade. The exporting of jobs for cheaper wages creates cheaper products. These products may be sold at a cheap price. The higher transportation costs are involved with outsourcing, shipping products across the world is subsidized by cheap oil, and the business is not responsible for the cost of their increase in