Even though the prices will lower of time, companies will take advantage of the recession, knowing that consumers still require their goods, no matter if it falls outside their budget or not. It is the government and consumer’s responsibility to overcome the “stickiness” of the prices via certain stimulations. Essentially the government will directly, or indirectly, create opportunities for work for its unemployed citizens, therefore increasing consumer incomes to a point where they will match a compromise price level. This, in turn, will cause the demand for goods to go up which will decrease the price temporarily. The economy is not run by a single entity, which means that it is the individual or individuals that are driving our economy.
That’s when instead of creating a business, most entrepreneurs merely create a job for themselves. They have achieved the satisfaction that comes along with their own businesses, only to find that this freedom has its price: Daily attendance is mandatory in order for the business to succeed and be profitable. In a sense, rather than creating their own business these entrepreneurs have instead created their own jobs, with all of the responsibilities that go along with it. The second challenge successful entrepreneurs’ face is that while they have developed the business skills they need to grow their business; very few of them have cultivated the personal wealth skills they need to build their wealth independent of their business. This is extremely shortsighted and risky.
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 corporation’s money magically becomes the stockholders’ money” (Denning). What the author failed to realize is that the shareholders bought into the company, and are now owners of the company. That is how the corporation’s money somehow became the shareholder’s money. Making money will always be a corporation’s primary goal whether they want to admit it or not. But that does not necessarily mean they will ignore their social responsibility.
Executives are hired to act as fiduciary agents of their stockholders for the purpose of increasing wealth (Smith, 2003). He argued that CSR amounted to spending the stakeholder’s money that clouded decision making by reducing the firm’s focus on maximizing profits, thereby placing the firm at a competitive disadvantage (Smith, 2003). Friedman’s approach is practical and takes into account the interests of both firms and society. However, it is not realistic to think that a firm can separate business and social responsibilities. According to Mintzberg "the strategic decisions of large organizations inevitably involve social as well as economic consequences, inextricably intertwined...there is no such thing as a purely economic strategic decision."
It seams to be that corporations tend to take the easy route by claiming for bankruptcies leaving many creditors with losses. Although we cannot blame such corporates, in today’s time this is known as one of the hardest time to search for jobs and stay alive as a business. Looking at it form the economic view bankruptcies are not the best thing to do, especially in today’s economic many of these corporates and small businesses help contribute to our economy. Many of these bankruptcies occur due to government decisions such as drastic minimum wage increases from $11.45 to $14.00 and $15.00 by
What are the risks, rewards, and trade-offs of a lifestyle business versus a high potential business one that will exceed $5 million in sales and grow substantially? A lifestyle business is one where the owner develops a company doing something they enjoy doing, they aren’t necessarily looking to become a millionaire they are generally satisfied making a living doing what they love. The risks involved with this type of business are mostly related to external factors, you are extremely dependent on the economy and the consumer market. In Roxanne’s case they were unable to hire quality and skilled employees at this level, it was crucial for them to grow into a larger organization to be able to attract higher level employees. The rewards of owning a smaller business is that you can set priorities outside of the business, if you want to shut the doors at 3pm and go golfing for the afternoon you can do so.
Your future wealth is no longer depending on how hard you work; there are hardworking intelligent people and hard working less intelligent people in all groups of society. According to current research, one of the major challenges we face today in terms of increasing gaps is that hard work often offers little guarantee of success. There are three key points we need to change in order to replace a down spiral to a rising one, privatization, globalization and our use of technology. We rely on private corporations to create jobs and to produce the goods and services we need to survive. But a problem appears when a country change health care, education and natural resources from governmental businesses, that benefit everyone, to private corporations that only benefit one or a few.
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.
Customer loyalty is relied upon for long term success and to continue to retain customers they used audience analytics to ensure they are targeting the right market, to acquire new customers, retain existing customers and cross sell. Without customer loyalty, their revenues would drastically decrease and they would evenly run out of money. Question 2: Explain the importance of data quality to the success of the RSC’s marketing campaigns As RSC is relying on audience analytics to retain existing customers, acquire new customers and cross sell to new markets. This is basically the only way that they are receiving their revenue from. What would have happened if the data quality was very bad, which in turn affected their marketing campaigns and they lose most if not all of their customers, they would have been unable to repay debts and eventually gone bankrupt.