"Working Capital Management" Please respond to the following: Examine the key reasons why a business may not want to hold too much or too little working capital. Provide two (2) examples that illustrate the consequences of either situation. The right level of working capital depends on the industry and the particular circumstances of the business. For example, businesses that only sell services, and do not need to pay cash for inventory need a lower level of working capital. Businesses that take a substantial amount of time to make of sell a product will need a higher level of working capital.
• Because Mr. Bury is operating in a monopolistic structure, his demand curve is downward sloping; • The quantity demanded increases as the price decreases. VIII. Organization and its values • Differentiating his product from his competitors as more companies enter the market will be crucial to the value of his product and organization • This creates a barrier of entry to competitors and gives Mr. Bury an advantage.
The price elasticity is important in business because it refers to the change in quantity demanded to the change in the price of a service or product. Elastic demand is a change in the price of the service or goods that can affect the demand. Will Bury product is different, and the success of his product can assume that the price can be elastic for his product. In the market, there are similar products that are available for different prices the lower the price may work out better in attracting new buyers. However, in Will Bury situation he may have to raise prices and sell more items to bring in more
Urban Outfitters Continuing Case Study: Marketing a business Introduction to Business 08-29-2011 Urban Outfitters Continuing Case Study: Marketing a business Explain why Sears or Wal-Mart cannot effectively create a trendy counterculture image. Sears and Wal-Mart are both what are considered to be Big Box Stores. Big Box stores are known for selling a large amount of items for less because of their ability to buy in bulk and mass produce their own products. When a consumer thinks about a Sears or Wal-Mart they will be thinking of the common items purchased by a large number of consumers, not of items that are considered unique, rare or hard to find like the items you might come across at an Urban Outfitters. When customers think of a niche store like Urban Outfitters they will be thinking of items that will be specific to that type of store such as a specific type of shirt or hat.
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.
The concept of cross elasticity of demand can be used to measure the presence of close substitutes for the product of a monopoly firm. If the cross elasticity of demand is greater than one, then the demand that the monopoly faces is elastic with respect to substitute products, and the firm has less control over its product price than if the cross elasticity of demand were inelastic. In other words, the monopoly faces competition from producers of substitute products. 22-2 Discuss the major barriers to entry into an industry. Explain how each barrier can foster monopoly or oligopoly.
Big advantages need to be broke down for their financial value and smaller advantages might seem to be more difficult to measure at first, but they will ultimately give the business more financial opportunity in the future. If the assets surpass their cost of accomplishment, the assets should be broke down using capital budgeting and figure out if they will see a good sizable profit compared to the capital that the company must invest in. A company needs to arrive with information systems plans that satisfy the business plan and approach, and correspond with their existing information technologies. Using scoring models and portfolios breakdown can both be used to help evaluate information systems
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?
Moreover, the goods from the outsourcings may not be as efficient as the goods that are made within the country. The consumers would choose the goods through the brand names or the prices; however, sometimes the consumers would choose goods by where they are made. Therefore, it is very significant to know where the goods are manufactured because it will increase the satisfaction of consumers since they are very demanding on the quality of goods. In addition, as the consumption of the goods decrease, the companies will earn less revenue that decreases the investment that they will spend for outsourcings. Thus, consumer demand has a big impact on outsourcings since people do not want to spend money on the outsourcings’ goods which make the companies earn less profits; on the other hand, the outcome will reduce the spending on
Vertical Integration and its effects on factors leading to firm’s performance 1. Introduction The great distance between the idea of a product and this product being delivered to the customer who buys it has forced firms to cooperate. Cooperation reduces the costs they face at each step of the production and delivery process. However, firms not only cooperate, they also expand by integrating other firms that have an activity related to a higher (upstream) or lower (downstream) stage in the production process than the original firm, this is known as backward or forward vertical integration respectively. Another type is the balanced vertical integration, which means that the firm owns all the components involved in the production, from the raw materials to the delivery in the market.