The errors that result from errors in translation are the cause of many problems in invoicing and making payments. These problems consume people's time and slow down cash flow. All these expenses simply eat away at profit margins that are already thin enough. In addition to the operating problems caused by using different part numbers for the same item, another consequence is a lack of accuracy and clarity in sales history data. Part number translation errors result in sales of some items being undercounted and sales of other items being overcounted.
Meaning that the number of people working is undetected. The downside to this is the macro economic policies are likely to be too expansionary and social policy too excessive. The second issue is these underground economy wages are escaping taxation which causes a loss in tax revenue. Lastly it shows that the citizens and the government have an unhealthy relationship. The taxpayers are not happy with the public services from the government and seek help with out having to pay taxes.
We will also look at bureaucracy issues that large firms suffer which are due to the non-performing managers and workers or the divisions, for e.g. a tools department of a large automotive firm may decide to buy from market due to the non competitive performance of there own tools division. Firm’s decision to buy from market is sometimes limited when the firm is exploited because of incomplete contracts, Oliver Williamson in his book The Economic Institution of Capitalism concluded that transactions cost include the time and expense of negotiating, writing and enforcing contracts as well as far greater costs that arise when firms exploit incomplete contracts. Oil and Gas industry follows vertical integration in supply chain which arises because of Technological economies, meaning less input cost will be required to produce a given output in downstream process. Such pricing lowers reported input prices and raises the profit of downstream operation.
With the economy in recession, high unemployment rates, and high interest rates proved very challenging for Welch to run GE. The challenges faced from inside the company were massive information and inefficient macro-business models. Amidst all the challenges, Welch took them on with a motto, which was to be “Better than the Best” (Bartlett & Wonzy, 2005). Welch took a stand to restructure the company and identified managers who would fit in areas that could assist to restructure the company, while other managers who did not bring value to the company were let go. By eliminating the sector level, about 123,450 jobs, and also eliminating addition of new jobs, Welch implemented lean and agile methodologies, as well as real-time-planning strategy.
In fact, those “growing” companies are not truly “growing” because that even if they are still making profit, they are losing consumers and market at the same time. Especially those companies who owns irreplaceable resource and products for now, they should have a clear cognition that no product is indispensable forever. In addition, companies always narrow themselves to a limited area so that it is hard to have extraordinary improvement in their products. In order to keep their competitiveness in this rapidly developing age, asking for trouble is necessary so that companies will be pushed to develop products to reach higher level of consumer satisfaction. It is important to focus on customers and customers’ needs instead of just persuading customers to make the exchange.
But unfortunately, it also has brought a lot to the cost, especially inventory cost. The big ones always buy a lot of different products and the demand variation is high. Up to 80% of the products have the c.v. more than 0.5. Obviously, those big customers are really vital to the business. If the company ceases to manufacture some products required by those big customers in order to decrease the inventory and cut off the cost, the company may lose contract with those important customers.
Subsidies and price supports have existed for centuries, but now they are incredibly wasteful and completely outmoded for world markets. Subsidies, fostering the protection of domestic industries have a negative effect on employment, the budget deficit, and other economic aspect. The economic implications of subsidies are significant. Government subsidies given to the private industry usually end up hurting the economy. A subsidy sponsors unprofitable business enterprises and often favors one firm over another.
Critical Issues The obvious problems that exist in BTC include staffing and decline in sales. Staffing has become a strenuous issue in the company, since there are many locations that have physical store buildings built but are sitting unstaffed. This problem not only involves in having a high labour demand, but extends to hiring the right employees that meet their standards – which increases the difficulty to meet the labour supply. In addition to that, the company has a high turnover rate due to the constant change in compensation, which consequently results in sales decline in the organization. To summarize, the critical issues with BTC are the following: - High Labour demand - Low Labour (that meets the standard) supply - High turnover rate - Sales decline Analysis Recruitment Staffing the stores, as stated by Nkere Udofia, the vice-chairman of Montreal BTG, is BTG’s most challenging issue.
However, there are people who are feared it will not be good and has an opposite impact for all concerned. It looks like a win-to-win scenario; it creates a good amount of jobs needed and reduces tariffs that benefit all members involved, but some are concerned about the agreement will benefit some specific groups and some will not. The problem is while the cost of labors in the US is expensive the labor’s cost of neighbor countries is cheaper; this leads to the jobs loss for the American people and workers. For example, Columbia is still one of the most dangerous places on Earth because of the government and its persecutions for those who against it; just like Chinese government. Next, the working condition for Columbian workers is poor and that concerns of some the human right group.
Sunflower Incorporated is experiencing some competitive and quality problems. An evaluations of the company branches indicated that some companies are making huge profits by offering substandard products while other are struggling to keep up with competition. Albanese, who was hired to solve this situation, proposed implementation of standardized pricing and purchasing decision across all regions. Though Albanese’s proposal was great, it was unable to achieve the desired outcome. This is because the proposal involved major changes to the organization purchasing and pricing processes and Albanese did not use the right strategies for managing the change process.