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
Goods need to be transferred from the manufacturing plant to the storage centers, and from these to the retailers, and finally, to the customer. Furthermore, transportation, warehousing, and information systems play very significant roles in the logistics function. For supply chain in particular, logistics creates the efficient flow of good between supply chain partners, and is responsible for the maximization of profits and competitive advantages. However, due to the geographical varsity of its manufacturing plants and warehouses, it posed a critical question, how to implement a good strategy enabling them to reduce costs-transportation, storage and labeling, and fixed costs. According to the case, Westminster Company has some issues that affect the transportation.
This factor affects directly the elasticity of almost every item, excluding monopolistic ones like oil or electricity in which we have less margin of action to find substitutes. For the rest, as consumers, we need to understand that the more variety of choices we have, the strongest our reaction to the change in price will be. Therefore, we could choose the perfect product that will respond to our needs of preference and price. Elasticity is also important for consumers because it varies depending on the type of product and the amount of money accorded to it. In the type of product we could find commodities but also luxuries.
On the positive side, industrial regulation helps to pass on to the consumer the savings that monopolists enjoy as far as cost reductions while also preventing the restrictions on output and higher prices that are typical of an unregulated monopoly. Additionally, in cases where competition is not practical, a monopoly is encouraged so that consumers can benefit from the low per-unit costs, so long as the monopoly’s prices are regulated (McConnell, 2011). Some negative aspects of industrial regulation are the costs and inefficiency associated with it, and that it can also form a perpetuating monopoly, where a monopoly continues to exist much longer than a natural monopoly should. 3. Explain the entities affected by industrial regulation in terms of market structure.
It's both a positive and a negative for FedEx that it provides services around the world, since it must respond to varying economic factors as a result. FedEx must be flexible with its charges, basing them on the economic status of each country it serves. Social Factors * Social factors that affect an organization are population and educational perspective of the international and macro-economical society. These pertain to decisions organizations make to meet the needs and demands of a specified number of consumers in certain countries. Populated countries are favorable to FedEx because they have more consumers who require their services.
The problem in one sentence: BPS failed meeting sales targets and renewals rates because sales departments are not operating efficiently. Let us take a look at the following complications of the selling process and its main causes. 1. Customers complain: Sales support team fails to provide a high quality proposal in a short period of time. Salespeople had to delay presentations by weeks.
As we have mentioned before our product has so many advantages compared to other products in the functional and sustainable factors then we will compete with those businesses and products based on product differentiation strategy. Then we will emphasis on the facts that are product relative to other products in the market will create more value that our customers are interested and paying for
Given this success, Target Corporation could rest on its laurels and pat itself on the back, however to continue to be effective, employee input and ongoing practice revisions by management are necessary. Target Corporation Outsourcing: Challenges and Opportunities Off-Shoring vs. Outsourcing In order to remain competitive in today’s volatile economic environment, many companies are looking for ways to cut costs. One major new step has been the growing industry trend of outsourcing work to countries where wages are less expensive and expected benefits are less financially based. There is a huge difference between outsourcing and off-shoring however, and this difference needs to be understood in order to effectively discuss the ramifications and benefits specific to outsourcing. Off-shoring refers to the expansion of a company into a foreign market, be it for goods or services.
Perfect Printing a)i) Stakeholder: A stakeholder is any person or organization with a direct interest in, and is affected by, the performance of a business, examples of main stake holders are: Employees, shareholders, managers, customers, local community, government etc. ii) social responsibility: Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. b) 1) the first possible source of conflict might be the new expensive machinery that they are planning to buy. This might enrage the shareholders because their dividend might get downsized because of already low profits the management will have to take out some of the profits to pay for the new machinery. By following environmental regulations the company might have to face a lot of protest from shareholders since keeping up with the environment can be quite expensive also while being a small local company can be quite problematic.
Value Proposition In order to solve the problem stated in the previous part, we aim at pointing out the value propositions for Spenncon, which could make the company more persuasive to customers. However, it is exceptionally difficult to find value propositions that resonate with all customers (Anderson 2006). Thus, we focus on suggesting how Spenncon could segment their customers and the value creation potential for each segment. In this case, we use resonating focus1, which points out one or two points of difference (and, perhaps, a point of parity) whose improvement will deliver the greatest value to the customer for the foreseeable future (Anderson 2006). In detail, Spenncon should segment their customers into 3 categories based on their sales activities instead of being based on average yearly turnover (which proved to be unsuccessful in the past).