There has been little in the way of fiscal policy, and the result has been entirely predictable. With no particular influx of spending into the economy, the recovery has generally been quite weak. With no fiscal policy tools on the horizon, it is therefore unlikely that any improvement to the recovery will take place.
International business is also an option for a company to improve its situation. If a company wants to sell, for example, running shoes, it has a number of options for this. The company could make the shoes in one country and sell them around the world. The company could also make the shoes in a number of different countries for local sale. It is recommended that the country should take advantage of economies of scale and produce in one country. Then, the company should sell the shoes all over the world. It can use local help from retailers to sell the shoes, or it can set up its own stores in order to make the sale.
Another option, of course, is to license production in each country. The downside of this is that there is not going to be production in every country, so there could be gaps in the licensing agreement. There could also be inconsistent product quality. Clearly, it is important for the company to analyze these different options carefully before settling on a course of action.
Additionally, companies should also take into account social responsibility. If you think about a company like Wal-Mart, they actually take social responsibility fairly seriously. Their focus on efficiency as a means of driving...
The result is that there are often good outcomes.
One stakeholder group for Wal-Mart is the company's suppliers. Often, the calls for greater efficiency and greater sustainability fall to the suppliers to implement. This can actually be a challenge for many and it might hurt their bottom line. Wal-Mart uses its bargaining power, however, to drive different terms for its purchases.
Ultimately, Wal-Mart's efforts at social responsibility derive from its profit motive. The company saves money if it lowers costs, and that is something that helps its shareholders and its customers. The suppliers maybe do not benefit as much, and that is something that should be taken into account. One could argue, however, that if the company's suppliers were to increase their efficiency they would also benefit as Wal-Mart does.
Works Cited:
World Economic Forum (2013). Global agenda council on the role of business. World Economic Forum. Retrieved May 5, 2013 from http://www.weforum.org/content/global-agenda-council-role-business-2012-2013
Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine Retrieved May 5, 2013 from http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html
Labonte, M. (2013). Federal Reserve: Unconventional monetary policy options. Congressional Research Service. Retrieved May 5, 2013 from http://www.fas.org/sgp/crs/misc/R42962.pdf
