Explain the term ‘globalisation’ and the role that multinational companies play in the development of globalisation. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services and has therefore lead to increased trade between countries. This trade encourages countries to work together and removes trade barriers such as quotas and tariffs. This increased openess allows countries to specialise in producing goods which they have a comparitve advantage in (this means they can produce goods at lower unit costs) A multinational Company is a corporation that has its facilities and other assets in at least one country other than its home country.
Also Sears and Wal-Mart may not want to for fear of losing the current core customers they already have established. Wal-Mart nor Sears has yet to compete with their other competitors. In fact, it will cost them more money to compete with any of the other big name distributors and they would have to raise their prices. Wal-Mart and Sears are known for their low and reasonable prices. According to Jeffrey Immelt he says that his environmental agenda is "not about being trendy or moral.
Should Mr. Jones convert Smithon to an S corporation and change the fiscal year end to a calendar year end? A: Converting Smithon to an S corporation has merit if the goal is for Smithon to remain controlled by a small number of shareholders. However, the equipment deductions for the corporation may be more valuable than it would be to Johnson personally. Either way, Smithon's value to Johnson will be the same, if he purchases Smithon outright. Changing to a calendar year end has little useful effect, and it requires that Smithon produce a short-year tax return from Dec to Jan, which is a relatively unnecessary administrative expense.
Thus the Internet offers to Perfect Paints a chance to manage the supply chain, speed up suppliers and integrate businesses along the chain. It also has the potential eliminating all the distortions during in exchanging information with others. By participating in being a connected supply chain will also offers Perfect Paints the opportunity to be more informed, efficient and competitive and, allows product planning to recognise demand and supply needs of the other business during seasons, peak and offpeak demand. Secondly, the opportunities to increase sales from existing customers whereby Perfect Paints should adopt internet marketing strategy because we can see the opportunities either to improve sales within the marketers we already serve or to enter
With its massive volume of data, Tesco needs to handle better the information by investing in NCR Teradata data warehouse, providing Tesco with 360-degree view of its customers. With this big investment in data handling system, Tesco could generate more personalized approach to its customers. Tesco has competitive advantage in offering its customers based on their buying patterns and their last baskets purchased. Tesco offers more personalized vouchers and specific offerings to its Clubcard holders. Marketing expenditures could be more efficiently targeted on its regular customers and their need segments.
How to compete with bigger competitors. (2012). Is4Profit online magazine. Retrieved from: http://www.is4profit.com/business-advice/business-strategy/small-is-beautiful-how-to-compete-with-bigger-competitors.html • Although small companies can’t use economies of scale, they are more efficient in cutting costs, while examining their operating model. • Small businesses can deal directly with their clients, without using the “middle men”.
This technology can help both firms reduce inventory expense, improve stock out performance, and respond more quickly to the customer’s demand. The system is very flexible and able to handle a variety of replenishment styles. In my opinion, this strategy benefits both companies; however, there are some major concerns. Besides the large investment on technology, it will take time to set up and familiarize with the system. Therefore, it requires a close relationship between two companies.
In e-business, online stores have the ability to spread out their fixed costs over a larger customer base and offer a wide variety of goods to their patrons (Shapiro and Varian, 1999). The global coverage of the internet provides small business with the possibility of reaching customers oversees at affordable price or virtually no cost at all and thus achieving economies of scale in terms of the number of products sold much more cost efficient compared to the cost of producing and distributing them. Firms which use the internet for advertising and promoting their selections of goods can also achieve economies of scale in relation to marketing efforts, which come from wider functions, more prompt servers, or more stored data. Firms providing a wide selection of products or services rather than
The Apogee company could have a few unprofitable field offices. In which case, closing or relocating the least profitable offices would dramatically increase the company’s profitablility. Secondly, there is no evidence that the market for the Apogee Company's goods and services is worse than it was in the past. There's not even any evidence of what the Apogee Company does! If markets for Apogee's goods and services exist in multiple locations, having one office hardly makes sense.
For business working with supply chains they can create smother, faster ways of dealing with the firms they regularly buy from. Many people across Adidas are engaged in supply-chain activities, this involves delivering sales or services to consumers, shipping products, negotiating with suppliers, trade partners, managing inventory, tracking orders and any other tasks. The internet offers Adidas a chance to manage the supply chain, speed up suppliers and integrate businesses along the chain. Opportunities to increase sales from existing customers: Businesses that adopt internet marketing strategy do so because they can see the opportunities either to improve sales within the markets they already serve or to enter complete new markets. As internet penetration increases and more business uses online strategy the web will become the accepted method for marketers.