Managerial Economics Essays (Examples)

Managerial Economics
Get the financial data for a company or organization for five years. From the balance sheet and the income statement for the company or organization develop regression line formulae for each line item and predict those line item revenues and costs over the next five years. Don't do prediction for any item in the statement less than 10% of the total sales on the incomes statement or 10% of the total Assets. Lump all those values into one account.

Financial Data for Starbuck's Cafe

Projections for the Next Five Years

Line Item

Net Revenues From Retail Sales

Net Revenues From Specialty Sales

Total Net Revenues

Working Capital

Longterm Debt

Total Assets

200500

230000

250000

270000

300000

Shareholder's Equity

150750

180000

200000

220000

240000

Operating Income

320000

360000

410000

485000

520000

Internet Related Investment Losses

Net Earnings

180000

210000

260000

285000

300000

Net Earning Per Common Share

Too small…

Managerial Economics Question Set
The demand function for Good X is defined as Qx = 75-2Px - 1.5Py, where Py is the price of Good Y. Calculate the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect to Good X.

Py

Substitute Px = 20 and Py = 10:

To find PED, another variable point is needed:

Increase Px by 15% (23),

6/20 x 100% = -30%

PED = -30/15 = -2

Because PED < -1, the demand is price elastic. (A rise in the price by $1 results in a reduction in Q. Of 2).

Let Py increase by 50% = 15

When Py increase, Qx= 75-2(20) - 1.5(15) = 12.5

The percentage of change…

Managerial economics, there are variety of structures and philosophies that companies will use to maximize their profit margins. This is accomplished through taking these concepts and continually adapting them in order to achieve these objectives. To fully understand how this applies requires examining an employer. This will be achieved by providing a description of the company, describing any problems they are facing, analyzing the dimensions of the job and studying the executive / employee compensation packages. Together, these different elements will highlight the underlying strengths and weaknesses of the organization. It is at this point, when specific insights can be provided that will help the firm adapt with the challenges they are facing inside the marketplace.
Provide a description of the company that you work for. As part of your description include a discussion of the type of organizational structure.

The company that we work for is a large electronics…

Managerial Decision Making
Walmart is the largest retail store outlet in the United States. The business operations that are done by Walmart as an establishment encompasses cafeterias, hypermarkets, retail supply stores and also warehouse clubs. Some of the risk factors that influence the company include domestic and international macro-economic factors, lack of response to consumer preferences or trends, obstacles in the expansion and extension of the international operations of the company, changes in laws, and issues in aspects of labor. The market structure in which the company is set in is monopolistic competition. This is because there are numerous buyers and sellers in the market and there is freedom of entry and exit from the industry. Of course the company makes its pricing decisions and production decisions on the basis of its market structure. Therefore the company has to set low prices because it is set in a market that…

Managerial Economics
Telecommunications has changed dramatically in recent years and continues to show signs of future change. The introduction of the smart phone has shifted technology away from communication via telephone. New applications allow users to use their phone as a walkie-talkie, way to access social-networks such as Facebook, a way to access email, skype and texting within applications. This changes the way customers approach buying a plan. There is less of a need for a large amount of minutes, but more of a need for unlimited, high speech internet. In addition, the customer base has grown as a wider range of people embrace the cell phone. Competition has increased. Now, some service providers do not require a contract and offer pay as you go services. In order to gain and keep customers, companies boast of faster connection speeds, cheaper services and better phones.

Retail merchandising has not seen recent…

Dr. Roubini argues that the need for spending to increase the fluidity of funds through the Chinese economy will do much to provide for global economic growth. It is atypical for him to sound a positive note about growth, yet he sees the investment and acceleration of the Chinese financial system as being essential for growth globally. The cautionary note about capital investment in China to the point of overcapacity is also critical for balance of trade globally.
References

Clement, D. "Explaining Growth " the Region 1 ep. 2010:

Geert Hofstede, and Robert R. McCrae. "Personality and Culture Revisited: Linking Traits and Dimensions of Culture. " Cross - Cultural Research 38.1 (2004): 52.

Lin, H., and E. Lin. "FDI, Trade, and Product Innovation: Theory and Evidence. " outhern Economic Journal 77.2 (2010): 434-464.

Nouriel Roubini. "The Confucian Consumer: even reasons why the Chinese save, when they really should be spending..…

Conversely, the optimal strategy for Firm 2 is to charge low prices while Firm 1 charges high prices, a scenario which generates a 6% increase in profits for Firm 2, as opposed to a 1% gain for its competitor.
Determine the Nash equilibrium. (v) Is this a prisoner's dilemma? How do you know?

The Nash equilibrium in this payoff matrix is demonstrated when both Firm 1 and Firm 2 elect to charge high prices. In addition to producing identical 5% increases in profit for both firms, neither firm has an incentive to lower prices, and thus neither firm stands to gain by unilaterally adjusting its pricing policy.

2.) espond to the charge that immigrants flood the labor market and drive down wages in the U.S.

As the increasingly politicized nature of America's immigration debate has been compounded by the effects of a prolonged national recession, major media outlets and economic…

No matter the exact figure, however, Sarah would have to earn an additional amount equal to the difference between renting an buying the building, as both options represent divergent investment strategies.
2.) According to Milton Friedman, "Business has only one social responsibility, to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree with such a statement.

his controversial statement by respected economist Milton Friedman poses an intriguing dilemma for executives to consider: What is a company's first and foremost priority, the generation of wealth or acting in a socially responsible manner? By flatly asserting that an enterprise possesses a sole social responsibility,…

Whole Foods
Managerial economics

Managerial economics: Whole Foods

In many ways, Whole Foods defies current assumptions of what constitutes a successful company strategy. It is an organic niche supermarket that prices its products relatively high in relation to its competitors. Yet it has become wildly successful in recent years, even defying conventional predictions of its likely demise during the credit crisis of 2008. This paper will explore the 'secret' of Whole Foods success using the core principles of managerial economics. Concepts germane to managerial economics include: exploiting the elements of effective leadership; ethics programs and the ethical orientation of the company; risk-taking; optimizing organizational structure; optimizing strategic control; and the need for balance between rewards, culture, and boundaries.

The elements of effective leadership and ethics

When Whole Foods began as the brainchild of current CEO John Mackey, its product was what distinguished it from its competitors. Mackey has been called…

Managerial Economics: The Demand & Supply Model
Managerial economics is the application of the economic theory using quantitative and statistical tools to analyze how organizations can achieve their aims and objectives. In other words, the managerial economics use the decision science analysis using the econometrics and microeconomic theories to analyze how organizations can achieve their aims and objectives efficiently by maximizing their profits through the combination of inputs such as capital, skilled labor, and raw materials. The managerial economics is also concerned with the ability of firms to manage legal constraints such as health and safety standards, minimum wage laws, and pollution emission standards. Similar to the private organizations that seek to maximize profits through the managerial economics, the non-profits organizations also face some constraints when attempting to reach their goals, however, the constraints may differ from a case to case. (Bhat, & au, 2008).

The objective of this paper…

Managerial Economics
What does your company produce? What utility or benefits does it provide to the consumer? How do consumers use it?

The company is one of the top luxury carpet manufacturers in the world. The benefits provided by the luxury carpets include; elegance, class, status, comfort and durability. The primary use of luxury carpets by the consumer is for decoration of home or office interior spaces.

What is your company's history with this product or service?

Deluxe Carpets has been in the market for more than 250 years. This company is based in rural England, collects plants from all over the world and then exports a major portion of their turnover. It is the biggest market including United States.

What does the competition in the market look like for this product or service?

There is good competition in the market because some other companies offer low cost alternative products.…

economic terms, such as scarcity and positive and normative economics, with the proposed goals of understanding the way that resources are part of the production process and of the decision making process within an economic entity.
As Milton Freedman has pointed out, positive economics describes and discusses "what is," while normative economics described "what ought to be" (Friedman, 1953). The distinction between these two notions is giving by the level of empirical knowledge in each case. Positive economics is the part of economic that uses empirical explanations for given economic facts and for the analysis. The conclusions in positive economics are drawn based on real-world data and their analysis.

Normative economics, on the other hand, is a more theoretical approach to economics and economic analysis, whereby conclusions and explanations are not necessarily drawn through the analysis of data and economic statistics and information, but through a subjective analysis of the…

Oceanic Cable provides pay-per-view coverage of all the University of Hawaii football games. The cost to purchase a single game is $12.95 if you live on Oahu, but is only $5 if you live on one of the other Hawaiian Islands. You can also choose to purchase the entire season of games for $75 if you live on Oahu and $25 if you live on a neighbor island. Given the pricing policy Oceanic has chosen, what goal might they have? Do you think the pricing policy is an effective way to achieve that goal? If not, what other pricing policies might Oceanic use?
For the most part, price is directly related with the demand of products. In general, the higher the price charged for a good or service, the lower the quantity that will be demanded on that product. A number of variables affect price which include but are not…

Price: The customer will be able to choose from a wide variety of prices, starting with $15 and ending with $2,000. The average retail price is of $100.00 a bottle of specialty wine, with an average fixed cost per bottle of $50. The $50 difference allows me to reduce the retail price if I find this is necessary to attract customers. I could also implement various pricing strategies, such as the penetration one in the beginning and the variable one after the penetration.

Break-Even Analysis: It sees that I would start making profits after I sell 8 bottles of wine. This would not however be true if I sell 8 bottles of the cheapest wines. The implemented price and the incurred costs once again allow me to joggle.

Industry Features: This may be one of the most important aspects of the new business, mostly given the recent talks and figures…

Managerial Econ
FedEx is a logistics company that "provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services." The company offers "integrated business applications through operating companies competing collectively and managed collaboratively" (FedEx.com, 2013). The company has a number of different units, including Express, Ground, Office, Customs Critical and other smaller businesses related to its core delivery businesses. The company has experienced a long-term rising trend in its revenues, mostly tied to the business cycle, but its net income has been more volatile over the past five years (MSN Moneycentral, 2013). FedEx has long been considered to be a bellwether firm for the economy, since it has a diversified corporate customer base and its stock price closely tracks industrial output (Goldstein, 2013).

Pattern of Change

FedEx has a relatively slow pace of change. The core technologies of the logistics business are transportation equipment, which has…

Managerial Economics
Whether it is important for a company to achieve cost leadership is dependent on the generic strategy that the company has chosen to pursue. The two basic forms of generic strategy are differentiated and cost leadership. Companies pursuing a differentiated strategy do not need to pursue cost leadership. They seek to maximize profits by building brand power to the point where they can charge premium prices for their goods. Thus, the strategy is fundamentally different from cost leadership, and is perfectly valid. Many firms have successfully pursued a differentiated strategy, and indeed, the differentiated strategy is a hallmark of firms in monopolistic competition. Each seeks to achieve a measure of differentiation that will attract customers. There are many different ways to achieve this differentiation, and cost leadership is just one among them.

For firms that wish to pursue cost leadership as a means of winning market share in…

Managerial Economics
The company that I am going to write about is Apple, Inc., which designs and markets personal electronics devices, software and accessories. Apple is known for its strategic control systems, both in terms of behavior control and information control. Chapter 9 notes that there are two different approaches to informational control, the traditional approach and the contemporary approach. The traditional approach compares performance against standards while the contemporary approach requires continuous monitoring of the internal and external environments and then adjustments to strategy where needed (Chapter 9). Chenhall (2003) notes that firms often weigh the environment, the industry, the technology and the size and structure of the firm when considering which strategic control systems they want to implement. In the case of Apple, these factors have led it to an informational control system that can reasonably be classified as contemporary. The company's industry is characterized by short product…

Managerial Econ
The company that is going to be discussed in this analysis is Starbucks. Starbucks is in the quick service restaurant business, with a focus on the coffeeshop industry. The outlets are a combination of company-owned stores and franchises, most of the latter being overseas. There is an agency problem in the way that some of these franchise businesses are structure. Starbucks, in going overseas, frequently utilizes local partners to run franchises.

Organizational architecture involves three main considerations: the assignment of decision rights, the reward system and the performance-evaluation system (Brickely et al., 2009). At Starbucks, there is a dual architecture for foreign franchises, especially in the countries were foreign franchises compete directly against store-owned franchises. In such situations, the decision rights are primarily with the company, and the franchisee has its decision rights subordinated. The reward system is based on store performance. The rewards range from more territory…

orkers tend to be a fixed cost, and a company facing permanently reduced demand should reduce its fixed costs, which probably means cutting the number of workers. However, a recession is not a permanent reduction in demand so the response has to be a bit more intelligent, knowing that eventually the business cycle will recover and the company will need to hire back workers when demand picks up again.
However, for some companies lowering the number of workers removes talent from the company that cannot easily be replaced when the economic situation improves. Some companies, like FedEx, prefer to avoid laying off permanent employees because the costs associated with hiring and training new employees are higher than if the hours of all existing permanent employees are reduced.

Thus, the answer comes down to the nature of the business, the nature of the employees who would be removed and the other…

Economics Course
Economics impacts on many areas of life subsequently it will impact on many areas of professional life. eflecting on the lessons learned, including the knowledge and skills gained, the real value is in the way that economics concepts can be applied to the real world; not only to explain event that are seen in the macro-environment, but to guide the way personal decisions will be made with that knowledge.

The first indicator of the lessons and concepts taught in the class being absorbed and developing into transferable knowledge has emerged with an increased understanding of the way that the economy operates and the influences which are present in the economy that are driving up prices.

There are many examples of the economic concepts; one example is the way that supply and demand has impacted on oil prices which has had a knock on effect in the economy as…

Economics
Observing the Influences that Impact Market Equilibrium

Purchasing fresh produce in a farmers market offers an opportunity to buy direct from a supplier. The process of buying fruit and salad items direct from the suppliers, rather than though an intermediary such as a supermarket, increases the exposure of the purchaser to price fluctuations. Visiting the market, which is held every weekend, over a number of weeks it was possible to see how different influences would impact on the supply and demand for the products, and how this impacted on the prices. The prices of the little gem lettuces appears to be one of the more sensitive products; this may have been due to their short shelf life. These lettuces, unlike other produce, are not suitable to be held for any period in cold storage, so there is not the ability to hold a supply ready for the peak demand.…

Managerial Decisions
This a case study- Chapter 13 - "Analyzing Managerial Decisions: Bagby Copy Company" This module focuses depth leg -legged stool read module 1: assignment decision rights. Should rights granted individual a team workers? Should decisions made local level national level? Finally, connection assignment decision rights ability existing knowledge create knowledge? In Chapter 13 module continue a discussion decision rights focusing tasks bundled jobs, jobs bundled subunits a firm, determining type organizational structure meets a firm.

Analyzing managerial decisions

In any business organization decisions have to be made in the event of trying to achieve set objectives and goals. The decisions made not only affect the decision maker but also the other staff members in the organization. In this paper, analysis of the managerial decisions by Bagby Copy Company focuses on bundling of tasks and determination of what organizational structure best meets the needs of the firm.

Discussion

Bagby…

(Png; Lehman, 2007)
As far as supply is concerned, if one were to assume that all the firms within an industry, like for example, in a government holding, are identical, then a market supply curve would be made up of the supply curves of all the supply curves of the individual producers in the country. (Adams; Periton, 2006) the elasticity of demand therefore measures the responsiveness of the demand to the changes in the factors that may affect demand. Therefore, this means that the elasticities of demand can be estimated for price, income, prices of related products or services, and the advertising expenditure needed. (Png; Cheng, 2001) as far as the factors affecting elasticity of supply are concerned, one must note that the longer the time one takes over the supply of a product or a service, the more elastic the supply becomes. Supply is stated to be elastic if…

ewarding Work: How to estore Participating and Self-Support to Free Enterprise (Harvard University Press, 197), economist Edmund Phelps offers this plan to help the working poor: apply tax credits for "qualified employers" or hire disadvantaged people for "eligible jobs." Evaluate this plan in terms of market incentives, one of the ten principles of economics, to work and current welfare programs. Is the Phelps' plan an improvement over current government policies? Discuss.
Lowering a company's tax bill will generally always be effective in causing them to invest more money in expanding which usually means more hiring. However, it is not a panacea, as the recent economic incentives have proven. As of late, firms have received a number of tax cuts but there has also been the passing of the Dodd Frank financial reform bill as well as ObamaCare, both of which (ObamaCare in particular) is clearly making employers cool to hire…

Market Structure and Managerial Decision Making
The objective of this paper is to discuss the concept game theory in the competitive market environment where there are two or more firms competing against one another. The paper cites the examples of Nash equilibrium, prisoner dilemma, and dominant strategy. Moreover, the paper discusses the theory of perfect competition, monopoly, monopolistic market and theory of oligopoly. (Bhat, and au, 2008).

Game Theory

The game theory is a type of situation where the rewards or payoff given to any player depends on the action of the other players. The interdependence between two or more firms is referred as a game theory, and the rewards earned by a firm is known as a payoff, and the payoff matrix assists in analyzing the interdependence between firms. A duopoly is an interdependence between two players that may result in a game theory. However, a relationship between two…

hen I understand what drives people to buy bottled water, I will be in a better position to forecast demand. I expect disposable income, distribution saturation, cleanliness and taste of tap water and price of bottled water will all factor. ith this information, I could understand the price elasticity of demand, for example, or the elasticity of demand relating to any other variable. Going international I would focus on the same, but I would also understand the currency exchange dynamics and the image that my country or region has overseas. In general, however, the types of information I need would be mainly the same, with respect to marketing. ith respect to culture (marketing message) or other such variables unrelated to the economics of the decision, there are undoubtedly some different forms of information that I would need.
Second student: I would want to know what the trends are for bottled…

Economic Value Added (EVA) Accounting Practice
Although Economic Value Added (EVA) is not a new concept in economics and financial theory and is based on the 19th century concept of "economic profit," it has only been widely adopted recently by business firms as an accounting practice. In this paper we shall describe what EVA is, and look at its pros and cons from the point-of-view of the company adopting the practice and the investors. We shall also discuss how EVA differs from some other emerging accounting practices and the major issues relating to EVA as compared to other commonly used accounting principles. Finally, the possible problems and opportunities that a company adopting EVA principles can face shall be examined.

What is Economic Value Added (EVA)?

Economic Value Added (EVA) is the after-tax cash flow generated by a business minus the cost of the capital it has invested to generate that…

Economics
If I was in Congress, I would not vote for such a tax. From an ethical perspective, such a tax is simply punitive. The oil companies are not strictly to blame if the price elasticity of demand for oil is low and they take advantage of that. Consumers have no inherent right to dirt cheap oil. The argument could be made that there are benefits to monopolistic profits such as further exploration, but that argument is actually a bit soft. First, drilling is already included on the income statement -- these are profits above and beyond what the companies need to sustain their business. And that is why they drill -- to sustain their business, so they're going to do it anyway. The reason you don't vote for such a bill has nothing to do with finding ways to make oil companies more profitable or less profitable; it is…

Managerial Decision
Our company is current being faced with an increase in demand, and this has management considering our options with respect to filling this demand. One of the questions that has arisen is whether we should hire temporary workers or new permanent workers in order to meet this increased demand. This paper will explain using economic terms why we should hire temporary workers to meet this increase in demand.

Demand Increase

The firm is currently experiencing an increase in demand for our main product. As a result, we are having difficulty meeting this demand with our current production levels. Our inventories are declining rapidly, and this is why we are faced with this decision. In order to make the right decision, we need to make an assessment of the nature of this demand. In simple terms, demand comes in two forms -- a permanent increase in demand or a…

33% on the 2013s; 27.78% on the 2018s 16.67% on the 2028s and 22.2% on the 2038s.
Using market value the weighted-average cost of debt is 6.798%. The weights are 35.42% on the 2013s; 28.39% on the 2018s; 16.14% on the 2028s and 20.03% on the 2038s. Thus, it does make a difference if book or market value weights are used. In this case, the market value weights skew more towards the short maturities, which have the lowest yields. This gives the weighted-average cost of debt for market value weights a slightly lower figure.

5) by book value, the weight for debt is 30.85% and equity 69.45%. This gives a weighted average cost of capital of:

e (Re) + d (Rd) (1 - T) =.6945(9.94) + (.3085)(6.854)(.65) = 8.277%

By market value, the weight for debt is 7.345% and the weight for equity is 92.645%. This gives a weighted average…

Managerial Acctg
The weighted average cost of capital is as follows:

In a net present value analysis, the cost of capital is often used as the discount rate. A net present value analysis seeks to reflect the value today of cash flows in the future. In order to do that, the future cash flows must be discounted back to present day dollars. There are a number of different ways to obtain the discount rate. The company might utilize a hurdle rate that they choose given their own reasons. Another approach is to use the rate associated with the financing that the firm wants to use -- for example if it intends to issue a bond it might use that bond rate as the hurdle rate. However, the weighted average cost of capital (ACC) is one of the most common.

The ACC is often adjusted to suit the risk profile of…

Economics for Business
The company that I am studying is Apple. The company is a designer and marketer of consumer electronics, specifically computers, smartphones, tablets, mp3 players and software. The company has experienced a strong run of great performance in recent years, but it has not always been that way for Apple. The company struggled considerably, especially in the 1990s, before breaking loose. The key thing about Apple is that it has always sought to differentiate itself. Over the course of the past ten years, we have seen most of Apple's former competitors in the personal computer space leave the industry. The reason is that the computer industry is moving towards the strategic hell of perfect competition.

Strategy Hell

The term strategic hell reflects the condition of perfect competition. In the real world outside of economics textbooks, few markets can be truly understood to be perfectly competitive. Perhaps a vegetable…

Managerial Prerogative Has Gone Too Far?
Whenever an organization is founded and the objectives for its existence have been established, the founders and management of said organization are expected to ensure the continuity, viability, and resilience of the enterprise. This is done via the allocation of needed resources (i.e. capital, human, financial, etc.) and formulation of strategies in order to achieved set and target organizational goals. Once operational, there are other duties, responsibilities, accountabilities, rights and privileges management can and must exercise to achieve continued operational success and efficiency. One of these management principles or concepts is known as managerial prerogative, which "includes the right to organize operations and methods of working, issue detailed instructions on the circumstances in which work is performed, and take in matters relating to working hours in so far as these are not rigidly regulated by collective agreement (Eurofound, 2009)." Often, managerial prerogative is institutionalized…

" (Moseley, 1)
From a project management standpoint, delegating these funds is a
significant concern. The recent history of government financial
mismanagement, has caused the public some rightful wariness as these
massive bailout plans come to fruition. The Obama Administration must
devise a strategy which ensures that these bailout funds are designed to
protect American homes, stimulate job creation and help to improve the
infrastructural stability of the nation. The administration has the
unenviable task of prioritizing the countless areas of civil life in which
the U.S. is currently struggling with debt and the erosion of resource.
This requires a management approach that is informed by crisis planning and
intervention theories.
Another way to successfully plan the delegation of funds and resources
as yielded by the bailout is through information systems management.
Modern IT Systems such as the Enterprise Resource Planning (ERP) system
allow users to enter in a complex…

76), ROE has ranged from 21.6% to 28.3% in recent years, with the 2007 figure being 25.6%. This reflects outperformance of both the industry and the market. The ROA has exhibited similar outperformance of both industry and market. The return on assets for JNJ over the past several years has ranged from 13.1% in 2007 to 17.l% in 2005. The industry five-year average is 8.85% and the market five-year average is 7.50%.
SWOT Analysis

Strengths

Net Income increased despite decline in revenues

Growth in each business segment

R&D expense growing slower than revenues

2-year upward trend in net income

Upward trend in cash levels

Upward trend in cash flow from operations

Current ratio 46.36% higher than industry

Interest coverage 80.09% higher than industry

Net margin 14.04% higher than industry

Return on Equity 1414.79% higher than industry

Return on Assets 48.02% higher than industry

Weaknesses

Decline in revenue this year (1st…

In the first instance, the pieces of information are considered to be absolute and, from the moment they start to circulate they become distributed information, coming from the interior or from the exterior of the company.
The role of the manager in this framework is of highly importance, since he has to detect the informational sources, this thing being possible only through his ability of working with people. Moreover, an efficient communication between the manager and his employees should be based on his ability of putting his ideas and thoughts into words, of speaking clearly and concisely, with authority and credibility in order to obtain the expected results the act of communication presupposes.

In my opinion, the four key-managerial functions are those of planning, decision-making, organization and communication, at least in the case of Coca-Cola, the company I work at. Practically, the manager has to plan the strategies, decide the…

Economics in China (Manufacture)
There is a time and stage for all types of manufacturing and what may be seen to succeed in China is not likely to succeed in many other countries like the United States. Chinese economy has developed very fast and that has attracted attention from all over the world in the business community. This has led to a rapid increase in their foreign direct investment and share in international trade. There are continuously new businesses coming into China, trade agreements are being finalized, and a lot of foreigners are rapidly coming into China. The point where the foreign managers and the Chinese managers are meeting is being studied by many consultants. Some reasons for the growth of business in china are also due to their culture, and that is one of the oldest cultures in the world. Their culture has always had a system of client…

Managerial Assessments of the Applications of egression
Management

The commentary of the article begins with the subject of the research in the article: Organizational Politics within Academic Departments. This subject is valid of research as it is a factor of which many students are unaware, yet are apart of and by which they are affected. Uninformed views or stereotypes of academia may not include the order of politics evident among faculty and staff within each department, yet they exist. Therefore the first piece of criticism is to validate the subject matter of the study. Furthermore, the authors argue for the importance of their study as there is little research in the area, for reasons that some of which are obvious and self evident.

The specific behavioral focus for the article is conflict. The authors wish to understand the nature of conflict within organizations and the impact conflict has upon perceptions.…

It might seem more economically beneficial for the company to store a maximum of only twenty bags of flour, as this is the minimum amount that the company needs to receive from the distributor in order to receive the discount, but this would not leave them any safety supply. With twenty-four bags of flour stored at a maximum, the bakery will have four extra bags of flour -- two days' worth of inventory -- on hand at the time of scheduled deliveries. This will allow them to continue operations for two days even with an interruption or delay in the delivery of the flour.

3)

Establishing leadership teams for each department and/or office of a given company whose members are selected particularly for their cultural diversity (as well as other necessary leadership qualities, of course) would be an effective way for any company to handle the changes in the workforce…

Furthermore, existing vulnerabilities of the airline industry are not taken into consideration until a disaster occurs. Lastly, the September 11th Security Fee introduced by the Department of Homeland Security was considered by many "as a beneficial trade off for their personal safety eventually," having as a direct consequence a rise of the airline industry.
ibliography

Gregory Mankiw (2004) Principles of Economics, 3e, Mankiw

InnovativeThinker. (2007) Economic Profile of the Airline Industry. Retrieved Feb 1, 2008, from Associated Content, Inc. Web site: http://www.associatedcontent.com/article/435732/economic_profile_of_the_airline_industry.htm

Wei, S. (2006). Analysis of aggregate Passenger Routes in Air Travel: An Atlanta-ased Study. Southeastern Geographer, Volume 46, Issue 1, page 139. Retrieved Feb 1, 2008, from web site: http://proquest.umi.com.ezproxy.apollolibrary.com

Recent Policy Initiatives to Raise Low Pay. (2004). Retrieved Feb 1, 2008, from ACORN.ORG: https://www.acorn.org/index.php?id=203

FRSF Economic Letter. (January, 2002). Airline Competition. Retrieved Feb 1, 2008, from Olin usiness School- Washington University: http://www.olin.wustl.edu/faculty/gowrisankaran/pdf_papers/airline_competition.pdf

Virgin Territory (2006, September 30).…

The absence of these however does not detract from the general value of the article, or from the proof of the premise. Furthermore, it could also be acknowledged that the factors described, other than EVA, are already well-known in accounting, and do not need a clear explication of both strengths and weaknesses.
Another factor in favor of the article and its premise is the fact that the authors acknowledge the shortcomings of EVA itself. The article for example includes a "Limitations" section that address these limitations. EVA for example does not take into account the current market value of assets, which could be misleading. Hence, it is difficult for EVA to project the future success of strategic goals and plans. Other factors such as market share and sales growth could better determine such future success. Furthermore, EVA only provides a global, one-year view of the operational performance of a company,…

Economics is the study of normal, or in more appropriate words, rational human behavior. It discusses human undertakings and attempts to fulfill and satisfy both needs and wants. People have to make certain choices regarding their money as they face the problem of possessing inadequate means for fulfilling their desires. It means that the equivalent collection of limited resources i.e. The discretionary income owned by a consumer is used for all types of consumer disbursements (Du & Kamakura, 2008).
Expenses of consumers in a specific industry can be considered accordingly by comparing their expenditures in other industries. It is a general conception among marketers that their participation is individually recognized in comparison with other related industries. However, it is extremely important for them to understand the consumer behavior while the consumers make trade-offs between meeting consumption needs of various sorts with a certain amount in hand. Environmental changes like escalating…

Economics
Coca Cola uses the equity method of accounting and, inherent in that and similar to it the SABC (activity-based costing) method.

There are three cost accounting techniques:

The Cost method -- the company records all income as received and gains or losses are only realized when the item is actually sold or destructed. When a company owns 20% or less of another company, the Cost method is the preferred method.

Consolidation -- here financial statements of the parents and its subsidiaries are combined so that the net assets of both are reported together.

The Equity Method -- used when a company owns more than 20% but less than 50% of another company. The income from these products is recorded as a single line item on the financial statements. Coca-Cola owns less than 50% of its bottlers so it uses the Equity method. This method of accounting is usually applied…

Managerial benefits of CS
CS improves brand image

CS increases sales

CS increases

Effects of CS on customer satisfaction

CS increases the demand of goods and services

CS improves corporate performance

CS affects employees, investors, and customers positively

CS boosts recruitment and worker relations

This paper examines the concept of business ethics and corporate responsibility through the lens of the social contract theory as well as the agency theory. Much of it however is on the social contract theory that holds the opinion that corporations must operate within the society via contract of giving back and caring for their environment. The paper then discusses the benefits associated with corporate social responsibility to a given firm. We look at how in increases efficiency in a given corporation as well the effects of business ethics and social responsibility the company's relationships with employees, investors, and customers. A recommendation and conclusion then follows.…

III. Talent 3: A good manager can "muddle without a purpose"

According to the author, this is the most important talent that a modern manager is required to have. Paraphrasing the definition for this talent given in the article, a talented manager will always be aware of the fact that not all his programs and solutions are likely to be accepted and applied throughout the organization by the company's employees. In this sense, a good manager will recognize the futility of trying to successfully implement all his programs and will regard it as a successful venture if at least some of the programs are implemented and the movement is in the direction that he has seen fit.

This is not only something that should be related with directing and implementing, but also with evaluation and control. As such, if at the end of a certain period of time, the evaluation…

However, EVA is neither as perfect as claimed by its advocates, nor is it the only performance measure that suggests a path to a superior stock return" (emphasis added) (p. 319).
More importantly, though, while the economic value added measurement approach to financial performance may not be without its detractors, the scholarly literature is consistent in emphasizing the need for such initiatives for companies to remain competitive in an increasingly globalized marketplace today. For instance, in his recent essay, "Profit-Increasing Strategies," Tracy (2006) reports that there are a number of ways for most companies to add value to their product or service. "There are many strategies for generating sales, profitability and wealth in every industry," he advises. "Your ability as an entrepreneur to create a profitable business where no business existed before is the key to your success. In every market, it's usually true that 20% of the businesses earn…

Managerial Hubris: Case Study of Farrow Bank
Instances of leaders and managers portraying overconfidence as far as their managerial behavior is concerned are not rare. This excessive overconfidence is referred to as managerial hubris (Brown, 2006). The individual overwhelmingly believes they cannot wrong. In most part, this behavior emanates from a sustained period of success, which makes the individual unrealistically perceive themselves as somewhat prone to error. Hubristic behavior can be costly to an organization, sometimes even leading to downfall (Hollow, 2014). This was particularly true for Farrow Bank, a booming bank in the early 20th century. The bank collapsed in 1920, with managerial hubris on the part of its founder and CEO, Thomas Farrow, being the major contributing factor. Focusing on the failure, this case study explores the implications of managerial hubris on organizational success. The case study particularly pays attention to four issues: how corporate culture, leadership, power,…

(Note -- GM lost money in a lot of years). Saturn did not benefit from this, and had to cover all of its own costs, which never really happened because it was broken up right at the point when its popularity was becoming a threat to the entrenched interests within GM and the UAW -- the latter incensed that Saturn workers had rejected its contract. Once the production was moved around, Saturn became just another GM brand, and this did not have cachet in the marketplace. The Saturn brand no longer stood for anything and the cars were not as good. Overall, consumer interest in the brand declined.
I do not feel that escalation of commitment was a defining factor in GM's decision to continue with Saturn. By the 2000s, Saturn no longer had its own manufacturing facility, so those fixed costs were not weighing on the minds of GM…

HM/Economics
Assessing an Incentive Scheme for Bobs Burgers

Bobby's Burgers has an incentive problem. In order to overcome the current issues, which include poor performance of managers allowing the quality to deteriorate, tt has been suggested that a stock plan is implemented that will give the unit managers 500 shares each. This is a plan that has some potential, but it is not the only option. The first section of the paper will assess the proposal and the second section will consider other ways that the firm may motivate the managers.

Proposal of the stock plan

A major benefit of the stock plan is the way it will provide an incentive for the managers to increase their effort by overcome the principle agent problem by giving the managers a stake in the performance of the company. The problem within firms is that the owners, who are the shareholders, and benefit…

Starbucks has the potential to benefit from the improving economic conditions. The firm appeals to the mass market, selling a non-essential product. Sales of non-essential products suffer most during economic downturns. Furthermore, when there is a recovery, firms that sell items of a relativity low cost that are still perceived as 'luxuries' may benefit from even small increases in the level of disposable income (Kotler and Keller, 2011). A key indicator of the economy in the U.S. is the unemployment level; this has dropped to 7.5% in 2013 with a recent Wall Street Journal survey of economists indicating they expect a further 180,000 jobs will be created each month for the next 12 months in the U.S. (Casselman and Izzo, 2013). As increase employment emerges wages are also likely to increase; raising the level of disposable income where the increases are above the rate of inflation. There is a general…

Secondly, the manager should consider calculating an expected value for every concluded branch, then each probable node and every decision node as a simple means of identifying expected values for each decision alternative. While the expected value is equal to the payoff, it is also the product of its probability and payoff.
Due to its results, the expected value rule is regarded as the most reliable way of judgment in managerial decision making because of its reliability in maximizing anticipated profit. However, the ability of a manager to reach actual decisions and maximize profit through this tool is based on his/her willingness to accept risk. The expected value rule is reliable because it enables managers to have different attitudes towards risk-taking in the process of making decisions. The different attitudes in turn enable managers to make risky decisions in ways that maximizes expected utility of the valuable or profitable outcomes.…

It sheds light on why the financial results deviated from expectations and what remedies can be included in the next strategic plan in order to ensure that the company improves performance in the next period.
There are differences among budgeting techniques in different companies and it may well be that some generalizations can be made between the budgeting techniques in different countries. In the Netherlands, for example, budgets are often a compilation of departmental budgets set by lower-level managers (De ith & Dijkman, 2008). Yet within that country, there is considerable divergence among public companies. The same is true for companies in other major estern nations as well -- a wide range of techniques is used in any given sample of companies.

It should be noted that in the U.S., there is a move towards post-budgeting techniques, such as Beyond Budgeting, Activity-Based Costing or the Balanced Scorecard (Becker et al.,…

This has an effect on: the kind strategy they are using to achieve their objectives, the attitude among employees / managers and how quickly a firm can adapt to changes inside the marketplace. ("usiness Success in Today's World," 2009)
Alternatives that can be used in Organizational Planning

One possible alternative that could be used to help provide businesses with better reporting is for them to begin using International Financial Reporting Standards. This is when the largest economies in the world, agreed to work together to create universal budgeting procedures that everyone can use by 2014. The basic idea behind this approach is to improve transparency and accountability, by having all of the various firms following widely accepted accounting practices. Once this occurs, is when there will be a shift in the way organizations are planning for a host of events. As a result, this kind of approach should be considered…

Margin is quite simple and states that a certain value of the production volume exists for which costs are accounted for, but profit is null. This critical production volume is calculated by applying the following formulae:
The Variable Cost per Unit is calculated as Total Variable Cost per Current Volume. Therefore, aggregate revenue (Quantity (Volume) x Price per Unit (P)) shall be equal to the Variable Cost per Unit x Quantity + Fixed Costs + Profit

Q x P=VCU x Q + FC + Profit

x (P -- VCU) = FC + Profit and Q = (FC + Profit) / (P -- VCU)

The critical point is reached when the Contribution Margin is equal to the Fixed Costs and Profit is zero, since the Contribution Margin the sum of the Fixed Costs and Profit.

The first point I think that needs to be maid is that the Contribution Margin is…

Managerial Accountant
ACC403 Module 4 Threaded Discussion Managerial Accounting 21st Century The purpose management accounting organization support competitive decision making collecting, processing, communicating information helps management plan, control, evaluate business processes company strategy.

The importance of management accounting within an organization:

Changes and evolution of the managerial accountant's role

The distinctive feature of managerial accountancy is that members of the profession work for one specific company on a consistent basis, versus being employed by a variety of clients. "The role of the management accountant is to perform a series of tasks to ensure their company's financial security, handling essentially all financial matters and thus helping to drive the business's overall management and strategy" (ole of the managerial accountant, 2012, Business Careers). Depending on the seniority of the accountant, these duties may include budgeting, tax advice and policy, managing assets within benefits packages and other forms of strategic planning (ole of…

managerial decisions: Structuring compensation plans
Economics / Chapter 14

Firms attempt to create attractive compensation plans in order to retain as well as motivate qualified employees. These compensation plans will vary among firms due to factors such as the nature of the product, competition, and location. In this particular case, Kaufmann's is a large chain department store which carries a broad range of products with a target of middle income consumers. With the knowledge that middle income consumers tend to spend more of their money on goods and services, this would tend to mean that there is the possibility for them to sell more goods than Parkleigh Pharmacy, as Parkleigh Pharmacy sells very expensive products. Taking this into consideration, Kauffmann's offering a five percent commission on sales will motivate the sales person to increase sales. This will in turn benefit Kaufmann's, as it would increase its sales revenue. On the…

Pizza Shop Demand Forecasting
Pizza Company Entry: Consumer Demand Forecast

There are a number of issues a company needs to think about before entering any particular market. In an industry such as the food service industry, there are even more factors to consider. Entering into any market can be a gamble, yet food service is often even more vulnerable in regards to the already strong presence of successful competitors and the income levels of the consumer markets being served. Within this particular analysis, the data presented in the course shell will be used as a way to determine if the Pizza Company should enter this particular market, and if so, which conditions will be most desirable in order to facilitate the most successful entry into the market.

egression Analysis

One of the best forecasting tools companies can use is regression forecasting in order to determine the potential for consumer demand…

Tourism in Thailand
Economic, Social, Cultural and Environmental Impacts of Tourism in Thailand

Urban and rural tourism in Thailand accounts for around 7% of the total GDP. There are various factors, social, economic, environmental and cultural factors which affect the tourism industry in Thailand. Also, the rural tourism in Thailand needs more work. This report has some strengths, weaknesses, opportunities and threats of Thailand's tourism industry. In the end, recommendations are given on how to improve the tourism industry in Thailand.

Thailand

Tourism in Thailand

Impact of Environmental, Economical, Social and Cultural Factors on Tourism in Thailand

Environmental Factors

Economical Factors

Social Factors

Cultural Factors

ural Tourism

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

ecommendations

Conclusions

eferences

Introduction

Tourism is one of the world's fastest growing industries, and this industry has been identified as a means of generating national income (Pender, & Sharpley, 2005). Thailand, a beautiful country at the heart…

Boom times on the gold coast of China" by Mike Edwards and Michael Yamashita (1997) discusses the industrial boom in the Pearl iver Delta. This area of southern China, adjacent to Hong Kong, was experiencing a boom in the 1990s in manufacturing. The authors of the article were writing about it like it was a new things, which I guess back then it probably was. The explored the nature of this boom, touching upon the political and economic system of the PC, as well as some light economic discussion about talent and capital inflows. Hong Kong was seen as the source for a lot of the influx of talent and capital. This is a big reason why the Pearl iver Delta became such a significant manufacturing hub, because Hong Kong served as a gateway for Western money to flow into the region. The article was written around the time of…

economic and cultural convergence brought on by globalization and its subsequent mixing of previously unknown combinations of workers. What is excellent about the Tyson case is that it illustrates in a macro and microeconomic way there is an amazing convergence upon workers as well upon the business systems from radically different countries and their importation and reconstitution in a U.S. type of corporate culture.
What are business systems? As usually defined, it is "A methodical procedure or process that is used as a delivery mechanism for providing specific goods or services to customers (Business Dictionary 2011)."

In terms of theoretical sociological approach, it is hard to see Steve Striffler as anything but an anti-positivist. In his approach, a precise analysis of "Mexican" as an ideal type, even though Laotians and Marshallese were included in the group, even Striffler was "almost Mexican" due to his presence amongst the workers not just…