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Market efficiency is the concept that markets have synthesized all available knowledge into the prices. Thus, the prices reflect that knowledge. By extension of this, there is little that an investor can do to "beat" the market -- that is to outperform market returns on a risk-adjusted basis. The theory of market efficiency is best encapsulated in the Efficient Market Hypothesis. This paper will explain market efficiency in detail and outline how understanding market efficiency can help investors to maximize shareholder wealth.
Heakal (2009) explains that Eugene Fama first proposed the efficient market hypothesis (EMH) in 1970. The EMH is based on the idea that "at any given time, prices fully reflect all available information on a particular stock and/or market" (Ibid). A perfectly efficient market will account for all publicly available information that can have an impact on the stock price. This information can be about the stock --…
Heakal, R. (2009). What is market efficiency? Investopedia. Retrieved August 8, 2011 from http://www.investopedia.com/articles/02/101502.asp
Naturally, this improves profitability for private enterprises but simultaneously shrinks the American production and labor economies. This is the type of stifling of growth that has contributed significantly to the current state of recession gripping the United States.
Globalization makes as its underlying presumption the assertion that by reducing barriers to economic integration across international borders, the world community is creating a vehicle to a more equal distribution of wealth. hether the distribution is more equal or not, certainly the process of economic colonization which has occurred across the last decade and a half is creating wealth. That the largest concentration of this wealth is enjoyed by only the smallest fraction of trade and industry leaders is revealing of the concept of 'voluntary trade.' This principle is paired with a sociological tendency toward the enforcement of stringent private property rights, with the two mechanisms creating vast opportunities for parties in…
Biggs, a.G. & MacGuineas, M. (2002). Cutting corporate welfare could fund a Bush
Social Security plan. The Los Angeles Times.
Kandikar, M. (2005). Outsourcing. The University of British Columbia.
Online at < http://www.econ.ubc.ca/kotwal/econ255/LW7.pdf >
Excess Stock eturns
The author of this report has been charged with doing a brief literature review and then answering two basic questions. The first question is whether the empirical evidence available leads to a predictability of stock returns using technical analysis. The second question asks the author to critically evaluate whether return predictability is a good indicator and test of market efficiency. While some people can get rich in the nastiest and most volatile economic climates, there is generally a correlation between how well the market tends to be and how well returns tend to be during the same time period, based on the totality of the evidence reviewed in this report.
Asness weighs in on the two questions to be answered in a fairly textbook way. Asness et al. (2013) asserts that there is a "value" effect whereby the long-term view of an investment is compared to its…
Asness, C., Moskowitz, T., Pedersen, L. (2013) "Value and Momentum Everywhere,"
Journal of Finance, Vol. 68, No. 3, pp. 929-985
DeBondt, W., Thaler, R. (1989) "Anomalies: A Mean-Reverting Walk Down Wall Street,"
Journal of Economic Perspectives, Vol. 3, No. 1, pp. 189-202
Market Efficiency and Empirical Approaches to Test for it
A review and discussion of market efficiency
A financial market is efficient with respect to information item, if the new information has fully influenced the market prices. In an efficient market, when a new information is made available its impact is said to be instantaneous or rapid and unbiased to the financial assets' current market prices.
There are three different hypotheses that have been formulated to try and explain market prices, in respect to what kind of information is availed to the market. The weak version of efficient market hypothesis suggests that the changes in market prices are in respect to all the information that the public has had in the past. The semi-strong form of hypothesis suggests that the current prices in the financial market is a reflection of all the information that the public, and that the introduction of…
Beaver, W.H. 1968, "The Information content of Annual earnings announcements," Journal of Accounting Research, pp.67-97
Burton G. Malkiel (1987). "Efficient market hypothesis," The New Palgrave: a Dictionary of Economics, pp. 120 -- 23
Fama, E.F., Fisher, L., Jensen, M.C. And Roll R., 1969, "The adjustments of stock prices to new information" International Economic review, pp 10, 1-21
Fama.E.F. 1970, "Efficient Capital Markets: A Review of Theory and Empirical Work,"
Market Efficient espect Set Information Impossible Makes Abnormal Profits
In his work, Fama argued that given the massive use of resources by the brokerage firm to conduct studies on trends in the industry, the effects of changes in interest rates on corporate balance sheets and expectations of managers and/or political analysts of the companies should be able to systematically beat a generic portfolio with the same risk characteristics.
Since, according to Fama, professional in every situation, the analyst has a fifty percent chance of beating the market; although its specific capabilities did not exist he would beat a lot of the market. The analyst did "help" the market to be efficient if all the investors, in fact, would hold portfolios composed of stock indices, would open up significant opportunities for professional traders to take advantage of the situation. But the movement of traders to that "new market" would…
Arrow, K.J., 1959. 'Toward a theory of price adjustment', in M. Abramovitz (ed.), The Allocation of Economic Resources, and Stanford: Stanford University Press, pp. 41 -- 51.
Aumann, R.J., 1964. "Markets with a Continuum of Traders," Econometrica, Vol. 32, No. 1/2, Jan. - Apr., pp. 39 -- 50.
Clifton, J.A., 1977. "Competition and the evolution of the capitalist mode of production," Cambridge Journal of Economics, vol. 1, no. 2, pp. 137 -- 151.
Frank, R., 2008. Microeconomics and Behavior 7th ed. (McGraw-Hill) ISBN 978-007-126349-8.
Specification of Thesis's Main Point:
Goldman (2009) surmises that today's economic crisis has changed many aspects of financial reporting, one of which is the calculation of the cost of capital.
Three Supporting Opinions/easons:
Utilizing much of his own personal, professional experience as well as other sources, Goldman's (2009) three supporting opinions all highlight the impact today's economic crisis has had. He quotes Marc Panucci, an SEC associate chief accountant, in his first supporting opinion. Panucci agrees with Goldman's theory that the turbulent economic environment of today requires changes to existing disclosures, in order to meet disclosure requirements. This is especially true when meeting disclosure requirements in liquidity, risks and uncertainties, and credit risks.
The Internal evenue Service is Goldman's (2009) second supporting source. Not known for their empathy, the IS has eased rules so that homeowner's facing tax liens can sell or refinance their homes. In fact, in some instances,…
Goldhorn, M. (Jan/Feb 2009). Market turmoil require new ways to build capital. The Value Examiner. pp. 23-30.
Market Model Changes
The medtech, or medical technology, industry is a large and intensely competitive industry that produces highly innovative medical devices for hospitals and other healthcare facilities in the effort to save lives and improve health for patients (Research, 2012). It is spread across different segments including, cardiology, oncology, neuro, orthopedic, and aesthetic devices. It relies largely on aging baby boomers, high unmet medical needs, and increased incidence of lifestyle diseases, including cardiovascular disease, diabetes, hypertension, and obesity.
The industry is being challenged by pricing concerns, hospital admissions and procedural volume, uncertainty concerning healthcare reform, Medicare reimbursement issues as agencies are looking for cost reduction measures, and regulatory overhang. There is a rise in patients deferring treatment in elective procedures. "One factor aligning economic and clinical forces: in the U.S., the number of medical practices owned by hospitals grew from 25% in 2005 to 50% in 2008" (practice, 2011).…
Blog, I. (2012, Mar 12). MedTech Industry Stock Outlook. Retrieved from Financial Content: http://markets.financialcontent.com/stocks/news/read/20832505/MedTech-Industry-Stock-Outlook
practice, B.G. (2011, Feb 9). Creating a new commercial model for the changing medtech market. Retrieved from Bain & Company: http://www.bain.com/publicatgions/articles/creating-a-commercial-model-for-changing-medtech-market.aspx
Research, Z.E. (2012, June 15). MedTech Industry Stock Outlook-June 2012-Zacks Analyst Interviews. Retrieved from Nasdaq: http://community.nasdaq.com/News/2012-06/medtech-industry-stock-outlook-june-2012-zachs-analysts-interviews.aspx ?
The total supply of milk might remain the same, because the remaining high-efficiency producers are likely to be able to earn profits at this level of output. In the long-run, however, lower prices are going to sustain the quantity of milk demanded at higher than equilibrium levels, and the profits available to producers at lower than equilibrium levels. Producers, in their efforts to control costs, are going to reach a point of diminishing returns on those efforts. The result of this is that the market for milk will eventually become so distorted by the price ceiling that the government is forced to raise the price ceiling in order to ensure that there are producers remaining in the market. The government will have created a situation where to simply maintain the milk market requires active management.
2. There are several factors that contribute to the price elasticity of demand. One factor…
Rittenberg, L. And Tregarthen, T. (2009). Chapter 3: Demand and Supply. Section 1 and 3. Principles of Microeconomics. FlatworldKnowledge.com. Retrieved December 2, 2011 from: click here
Rittenberg, L. And Tregarthen, T. (2009). Chapter 4: Applications of Demand and Supply. Section 1 and 3. Principles of Microeconomics. FlatworldKnowledge.com. Retrieved December 2, 2011 from: click here
Rittenberg, L. And Tregarthen, T. (2009). Chapter 5: Elasticity and a Measure of Response. Section 1 and 2. Principles of Microeconomics. FlatworldKnowledge.com. Retrieved December 2, 2011 from: click here
Over the last few years, the government has exerted more control on the insurance industry by controlling premium rates meaning the industry has become less competitive on pricing. In addition to this, through Obamacare, the government has set requirements for healthcare insurers which have significantly reduced their medical loss ratio Dinan 396.
The second factor that affects the degree of competitiveness of the industry is the number of companies operating in the industry. This has been the major reason for the hundreds of mergers in the industry since this is the major driving factor for changes in market share. The last factor is government-provided health insurance. The government provides insurance plans which create significant competition for the private companies Vanness and olfe 101()
The productivity measures that can be developed are the number of health insurance consumers, average cost of providing medical cover and price of health insurance premiums. The…
Austin, D. Andrew, and Thomas L. Hungerford. The Market Structure of the Health Insurance Industry. Washington, DC: Congressional Research Service, 2009. Print.
Baughman, Reagan. "Differential Impacts of Public Health Insurance Expansions at the Local Level." International Journal of Health Care Finance and Economics 7.1 (2007): 1-22. Print.
Dinan, John. "Shaping Health Reform: State Government Influence in the Patient Protection and Affordable Care Act." Publius 41.3 (2011): 395-420. Print.
Dossche, Maarten, Freddy Heylen, and Dirk Van den Poel. "The Kinked Demand Curve and Price Rigidity: Evidence from Scanner Data." The Scandinavian Journal of Economics 112.4 (2010): 723-52. Print.
Then, a second major difference resides in the sources used to retrieve the necessary funds. The nonprofit organizations do indeed get the support of the federal budget in the meaning that they are often exempt from tax payment; but they have to raise the funds by themselves without any additional help or interference. They do this through the organization of various events, such as concerts, dinner parties or theatre plays, during which wealthy members of the community donate money to the causes promoted by the NPOs. In the case of governmental institutions however, the funds come directly from the state officials. The money is initially collected from the general public in the form of taxes, fines or other transfers to the state budget, and then redistributed to the state agencies.
A third difference also deals with the financial nature of the organizational activities, but is somewhat different from the previous…
Alvarado, E.I., 1998, Is there a Difference between 'Nonprofit' and 'Not-for-profit'?, Idealist, http://www.idealist.org/if/idealist/en/FAQ/QuestionViewer/default?section=01&item=09last accessed on June 19, 2008
Feiock, R.C., Andrew, S.A., Understanding the Relationships Between Nonprofit Organizations and Local Governments, Florida State University, Retrieved at http://www.fsu.edu/~spap/feiock/papers/Nonprofits_&_Public_Services.pdfon June 19, 2008
Frumkin, P., Kim, M.T., 2000, Strategic Positioning and the Financing of Nonprofit Organizations: Is Efficiency Rewarded in the Contributions Markeplace?, the Hauser Center for Nonprofit Organizations and the Kennedy School of Government, Harvard University, Retrieved at http://www.ksghauser.harvard.edu/PDF_XLS/workingpapers/workingpaper_2.pdfon June 19, 2008
Hopkins, B.R., 2005, Starting and Managing a Nonprofit Organization: A Legal Guide, Wiley
The assumptions of industry structure and pricing are based on the market shares of the leading competitors in the motorcycle market including Harley-Davidson with 65% and Honda with 12.9%. There are over 40 different manufacturers of motorcycles globally who comprise the remaining 22% of the worldwide market (Murphy, 2008). Gaining distribution for a new motorcycle model will be challenging given the concentration level of competitors in the market. As motorcycles are considered discretionary purchases, they are influenced by the consumer sentiment index, the level of per capita disposable income, the downstream demand for motorcycle dealership and repair, and the available time consumers have for using them (Diamond, 2008). All of these factors are taken into account in the factoring of both the baseline motorcycle industry forecast and the hybrid motorcycle forecast as well.
Sales and Unit Forecasts
Using exponential smoothing and an average sale price of $9,100, the forecast for…
Diamond, D.. (2008). Managing Incentives for Green Vehicles. Public Manager, 37(4), 15-18.
Lapide, L.. (2009). History of Demand-Driven Forecasting. The Journal of Business Forecasting, 28(2), 18-19.
Patrick Mahoney. (2007, March). Taking the roar out of the crowd: HYBRID MOTORCYCLES. Machine Design, 79(5), 98-100.
Murphy, R., Graber, M., & Stewart, a.. (2010). Green Marketing: A Study of the Impact of Green Marketing on Consumer Behavior in a Period of Recession. The Business Review, Cambridge, 16(1), 134-140.
Of course, this is a good thing for customers on short-term, but is negatively affects other companies on the market. This is because smaller competitors and especially those that intend to enter the market addressed by IBM find it at least difficult to provide product prices in accordance with those provided by IBM. These smaller companies do not have the ability of reducing their production or operating costs, which does not allow them to introduce competitive prices on the market. This way, they are clearly disfavored by IBM's position and market power.
In addition to this, in a field like it, it is imperative to make continuous investments into the research and development activity. This requires significant capital amounts from these companies. The investment levels that IBM reaches cannot be reached by many of these companies. This makes it difficult for these companies to keep up with IBM and its…
1. Oates, J. (2009). IBM Faces EU Monopoly Probe. Enterprise. Retrieved November 14, 2010 from http://www.channelregister.co.uk/2009/01/20/ibm_eu_probe/ .
2. Annual Report (2010). IBM. Retrieved November 15, 2010 from http://www.sec.gov/Archives/edgar/data/51143/000104746910001151/a2195966z10-k.htm .
3. Monopoly: A Brief Introduction (2006). Linux Information Project. Retrieved November 15, 2010 from http://www.linfo.org/monopoly.html .
4. O'Gara, M. (2010). EC Opens Two Antitrust Investigations of IBM. Retrieved November 15, 2010 from http://soa.sys-con.com/node/1478919.
Market Share and Sales
As stated above, it is impossible to predict total market share in terms of a percentage or direct proportion. The growth in the demand for web development services vastly outstrips supply, and with a large part of the retail sector still untapped in terms of website sales it will be impossible for any small competitor to capture a major portion of market share (Urbach et al. 2009; Mohammed 2008). Sales will only be limited by the potential of the company to produce the products sold, however, meaning a substantial amount of revenue can be generated.
Ongoing Market Evaluation
Statistics and market trends are regularly calculated, compiled, and published by a variety of individuals and organizations, including the Canadian national government, which will allow for the continuous monitoring of relevant data and potential impacts on the market (Office of Consumer Affairs 2011). The company's planned move…
Mohammed, A. (2008). Retailers Competing for Market Share: 2007 Retail Sales in Review. Accessed 18 October 2011. http://www.statcan.gc.ca/pub/11-621-m/11-621-m2008075-eng.pdf
Office of Consumer Affairs. (2011). Consumer Trends Report. Accessed 18 October 2011. http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02088.html
Urbach, M., Schaan, S. & Anderson, F. (2009). Technological Change in the Private and Public Sectors. Accessed 18 October 2011. http://www.statcan.gc.ca/pub/88f0006x/88f0006x2009004-eng.pdf
Even public transportation is growing more expensive, given that cash-strapped states are raising fares.
Victory offers customizable bikes with great value and power, according to its promotional literature. I
Victory began as an "offshoot" of Polaris Industries, which is mainly known for marketing snowmobiles and ATVs. Amongst the target audience, particularly in the South and areas where snowmobiling is uncommon, it may have little brand recognition.
The economic downturn and demand for more fuel-efficient vehicles could be capitalized upon as a great opportunity for the company -- more individuals are likely to be seeking out motorcycles as a mode of transportation.
In a recent head-to-head of Harleys and Victories, one trade magazine said that Victory produced the superior model, but Harley had the better-known name: "It comes down to cooler character of the Harley vs. The better handling, more powerful Cross Country. I know…
Cherney, Andrew. 2010 H-D Road Glide vs. 2010 Victory Cross Country: New breed of baggers busts out. Motorcycle Cruiser. 2010. October 7, 2010 at http://www.motorcyclecruiser.com/roadtests/1004_crup_2010_hd_road_glide_vs_2010_victory_cross_country/motorcycle_design.html
Scooters and Motorcycles Popularity and Wrecks Increase. Technology for the Future. July 21, 2010. October 7, 2010 at http://techus.org/2010/07/scooters-and-motorcycles-popularity-and-wrecks-increase/
Victory Motorcycles. Official website. October 7, 2010.
Market Equilibration Process for Computer Peripherals
That Experience High Level of Cyclicality
The demand for computer peripherals in general for the inkjet and low-end nonimpact printers specifically has continually proven to be highly inelastic, where price reductions are not as effective as a continual stream of new product innovations. Having completed internships with peripherals manufacturers, this observation became very clear as product management and marketing teams continually tested the market equilibration process with price reductions, bundling suppliers and extending the overall warranty period as well. When the law of demand is applied to computer peripherals in general and inkjet printers specifically, the inelasticity of these markets becomes more pronounced and the ancillary process workflows emerge as the primary differentiators.
Analysis of Market Equilibration Process for Computer Peripherals
In the absence of highly elastic product demand and exceptional product differentiation that leads to unitary or highly elastic demand curves for products,…
Leijonhufvud, A. (2009). Limits to the equilibrating capabilities of market systems. Journal of Economic Interaction and Coordination, 4(2), 173-182.
Matsushima, N. (2004). Technology of upstream firms and equilibrium product differentiation. International Journal of Industrial Organization, 22(8), 1091-1114.
Many consumer electronics products including DVD players, TVs and PCs are produced with this strategy in mind. Imitators is the third follower strategy, and Chrysler, in designing the 300M grill work to resemble the Bentley automobile front grill is an example of this strategy. The final follower strategy is that of being an Adapter. Many of the Japanese auto manufacturers excel at this strategy, including Toyota and Hondo, who have through adaptation of car designs and more efficiency of production, have overtaken the American cars they were initially adapting from. This is particularly true with the Toyota Camry overtaking all mid-size sedans globally in sales, with over 40,000 sold per week in the United States alone. Of all follower strategies, the adapter one retains the greatest profitability over time.
Kotler (2005). Marketing Management. 12th Edition. Philip Kotler. Prentice Hall Publishing. Saddle iver, NJ.…
Kotler (2005). Marketing Management. 12th Edition. Philip Kotler. Prentice Hall Publishing. Saddle River, NJ. May, 2005. Chapter 11 on competition.
Technical Analysis in the Implication of Efficient Market Hypothesis on Silver Market
The thesis is for the study of simple commonly used technical trading rules, which are applied on silver market. It covers years 1989 to 2005. A famous study carried out by Lakonishok, Lebaon and in year, 1992 has clearly shown that technical analysis can lead to abnormal prices when compared with buy-and-hold strategy. Other studies have been carried out and found out that technical trading rules cannot over-rule passive investment management strategy. The study uses Brock et al.'s methodology. Several trading rules are discussed (Dawson & Steeley 2003).
In financial theory, efficiency of financial silver market is highly disputed. This has led to many attempts to explain efficiency of silver markets. Eugene.F. Fama formulated the most famous definition in 1970 referred to as the, Efficient Silver market Hypothesis (EHM). The basis of the hypothesis is that…
Alexander, S.S. (1964) 'Price Movements in Speculative Markets: Trends or Random Walks'. Industrial management Review 5 (2), 25-46
Brock, W., Lakonishok, J., & LeBaron, B. (1992) 'Simple Technical Trading Rules and the Stochastic Properties of Stock Returns'. Journal of finance 4, (5), 1731-1764
Chang, P.H., & Osler, C.L. (1999) 'Methodical Madness: Technical Analysis and the Irrationality of Exchange Rate Forecasts'. Economic Journal 109 (458), 636-661
Dawson, E.R., & Steeley, J. (2003) 'On the Existence of Visual Technical Patterns in the Uk Stock Market'. Journal of Business Finance and Accounting 30 (1-2), 263-293
27-29) This provoked financial demands and awareness of the people in different parts of the world. People and businesses are dissatisfied with the traditional financial systems due to lack of opportunities for investors. Businesses today require more diversified portfolios for investments because this will reduce their investment risks and increase the probability of future capital flows.
Increased capital mobility has increased the importance of exchange rates which is serving as a monetary policy channel in some industrialized economies. In mid 2000s, there was a sharp shift in the flow of international investments and savings (geographic pattern) resulting in the segmentation of current account imbalances. This was also a major contributing factor. Additionally, the domestic financial markets were also affected by the change in regulatory environment. The two important factors for this are as follows:
1. apid growth of OTC (over-the-counter) markets of derivatives in terms of complexity as well as…
Bekaert, G., Harvey, C. And Lundblad, C. 2005. Does financial liberalization spur growth? Journal of Financial Economics 77, 3 -- 55.
Edison, H., Klein, M., Ricci, L. And Slok, T. 2004. Capital account liberalization and economic performance: survey and synthesis. IMF Staff Papers 51, 111 -- 115.
Kaminsky, G. And Reinhart, C. 1999. The twin crises: the causes of banking and balance-of payments problems. American Economic Review 89, 473 -- 500.
Klein, M. 2005. Capital account liberalization, institutional quality and economic growth: theory and evidence. Working Paper No. 11112. Cambridge, MA: NBER, pp.19-21.
efficient market hypothesis and its relation to securities prices, their response to new market information, investor opportunities, and behavioral finance challenges.
hat does the efficient market hypothesis say about a) securities prices?
An efficient market is one in which "the market price of a security is an unbiased estimate of its intrinsic value" (Chandra, 2008). That is not to say that the market price for a security will equal its intrinsic value all the time. But what it does say is that there will be errors in market prices but they are not biased; and it does also say that while the price of securities can and will diverge from the intrinsic value of the securities but that deviation will be (in most cases) random. The divergence of the price from the intrinsic value will not be linked "with any observable variable" (Chandra, 422).
Because the deviations of the market…
Beggs, Jodi. "The Efficient Markets Hypothesis." About.com. Retrieved July 29, 2014, from http://economics.about.com . 2011.
Chandra, Prasanna. Financial Management. Delhi, India: Tata McGraw-Hill Education, 2008.
Kiplinger. "Can you beat the stock averages? Whole-house fans can cut cooling costs.
Singles need estate plans, too." Changing Times. 1980.
Behavioral Finance Concept v. Efficient Market Hypothesis:
For more than a century, the concept of efficient markets has been the subject of numerous academic researches and huge debates. An efficient market is described as a market with a large number of balanced profit maximizers that are actively competing against each other to forecast the future market values for individual securities. The efficient market is also defined as a market where current information is nearly freely available and accessible to all participants. Generally, in an efficient market, competition will make complete effects of new information on essential values to be reflected instantly in real prices (Singh, 2010). The efficient market hypothesis has developed to become a significant cornerstone of contemporary financial theory even though the market seems to be more modern and characterized by increased inefficiencies. As a result, the standard finance for rational analysis framework has been placed in an…
"Analysis of Behavioral Finance Efficient Market Hypothesis for the Amendment and Innovation." (n.d.). Tastecaste.com. Retrieved July 25, 2012, from http://www.tastecate.com/freepages336095_Analysis-of-behavioral-finance-efficient-market-hypothesis-for-the-amendment-and-Innovation#
"Behavioral Finance -- A Challenge to the EMH." (2010). Accredited Portfolio Management
Advisor. Retrieved July 25, 2012, from http://www.cffpinfo.com/pdfs/APMA_Sample.pdf
Cunningham, L.A. (2002, January 6). Behavioral Finance and Investor Governance. Washington and Lee Law Review, 59(3), 767-837. Retrieved from http://scholarlycommons.law.wlu.edu/cgi/viewcontent.cgi?article=1346&context=wlulr
New Companies Entering the Market
The beverage industry is witnessing rapid evolution with constant flow of new market entrants. These entrants attempt to avail product or marketing tactics that set them apart from the existing firms.
Firstly, the beverage market is able to support a certain number of successful companies. With the crowding of the market, there is reduction of room for new entrants thereby giving the customers as many options as they want. Consequently, customers might either reject these new entrants failing to notice them the most obvious result is that competition becomes so fierce that new entrants find it challenging to compete financially with the existing firms. In addition, the market share of the existing companies is reduced leading to sustainability challenges. In this regard, it is recommended that existing beverage companies adopt creative marketing techniques to retain and capture more market share.
Secondly, these new…
Diggines, S., & Walker, P. (2012, February 2). New FDA Regulations Impact Food and Beverage Companies. Retrieved September 13, 2012, from www.controleng.com: http://www.controleng.com/industry-news/more-news/single-article/new-fda-regulations-impact-food-and-beverage-companies/b8abbd1a10.html
Fisher, A.A., Johnson, F.I., & Lande, R.H. (1989). Price Effects of Horizontal Mergers. California Law Review,, 777-827.
Geiger, K., & Hamburger, T. (2010, February 7). Beverage Industry Douses Tax on Soft Drinks. The Los Angeles Times.
Gilbert, C.G., & Bower, J.L. (2007, February ). How Managers' Everyday Decisions Create or Destroy Your Company's Strategy. Retrieved September 13, 2012, from www.hbr.org: http://hbr.org/2007/02/how-managers-everyday-decisions-create-or-destroy-your-companys-strategy/ar/1
High Stock Returns in Efficient Markets
"An efficient market is where market prices are an unbiased estimate of the true value of the investment" (Market Efficiency-Definitions and Tests). Market efficiency only requires that errors in market price be unbiased, not the market price to equal true value every time. Overvalue or undervalue of stock is random in an efficient market. There is an equal chance that stocks are overvalued or undervalued at any point in time.
Profit opportunities presented by overvalued and undervalued stock motivate investors to trade, which moves stock toward its intrustic value (Jones). Changes in stock prices in an efficient market should be random. Investors cannot earn abnormally high returns on stock in an efficient market when prices reflect the intrustic value.
If the stock market is efficient, some people can make very high returns by purchasing the stock at under the value of the intrustic stock…
Jones, S.L. & Netter, J.M. Efficient Capital Markets. 2008. website. 13 Feb 2013.
Market Efficiency-Definitions and Tests. n.d. website. 13 Feb 2013.
Domestic debt is also needed for monetary policy purposes including for sterilizing inflows of foreign exchange." (Kahn, 2005) In addition bond markets assist in the provision of interest rates across the maturity spectrum and more efficient pricing of risk. y providing an alternative source of financing they reduce concentration of intermediation in banks. ecause lending can be hedged in the bond market, banks have the ability to lend longer." (Kahn, 2005) Kahn notes that PECC (2004) states general requirements for bond market development which include: (1) the simultaneous development of market width, market depth and market infrastructure; (2) effective coordination among government agencies; (3) close public-private sector partnership; and (4) regulation focusing on maintaining and enhancing transparency and the treatment of taxation. (Kahn, 2005) Kahn concludes by stating that if bond markets are to be development in SSA or in other emerging markets, the role of the state becomes critical,…
Adelegan, O. Janet and Radzewicz-Bak, Bozena (2009) What Determines Bond Market Development in sub-Saharan Africa? International Monetary Fund. IMF Working Paper. Sept 2009. Online available at: http://www.imf.org/external/pubs/ft/wp/2009/wp09213.pdf
Armstrong's Guide to Investing and Doing Business in Botswana (2008) Online available at:
Developing Government Bond Markets (2001) International Monetary Fund -- A Handbook. 2001 July. Washington, D.C.
ehavioral Finance and Human Interaction a Study of the Decision-Making
Processes Impacting Financial Markets
Understanding the Stock Market
Contrasting Financial Theories
Flaws of the Efficient Market Hypothesis
Financial ubbles and Chaos
The stock market's dominant theory, the efficient market hypothesis (EMH) has been greatly criticized recently for its failure to account for human errors, heuristic bias, use of misinformation, psychological tendencies, in determining future expected performance and obtainable profits.
Existing evidence indicates that past confidence in the EMH may have been misdirected, as the theory's models do not show a thorough understanding of trading operations in a realistic light.
Researchers have suggested that a variety of anomalies and inconsistent historical results demand that traditional financial theories, namely the EMH, be reconstructed to include human interaction as a key decision-making process that directly affects the performance of financial markets.
This research paper aims to determine whether or not there is a…
Barrett, Larry. (January, 2001). Emotional investing a recipe for disaster. CNET News.com.
Bernstein, Peter. (1998). Against the Gods: The Remarkable Story of Risk. New York, NY: John Wiley & Sons.
Brennan, Phil. (March 12, 2002) The Great Stock Market Scam. NewsMax.com.
Business Week. (September 29, 1997) The Perils of Investing Too Close to Home.
Consider the following. The theory of market efficiency is based on the premise that a market is considered efficient when stock prices are an actual reflection of information known about a company. U.S. markets are generally viewed as semi-strong form market efficient.
What would happen if U.S. markets became less efficient?
What might lead to markets becoming less efficient?
How do markets in other countries compare to the U.S. in terms of efficiency?
The efficient market hypothesis is based on the idea that a market is regarded efficient when stock prices are the true reflection of a company's financial information and status. While this concept/theory has been under academic and professional consideration for several years, it's an underlying assumption across several financial models. The theory of market efficiency is used to determine or understand the strength and status of a nation's economy. Through this theory, an economy…
market structures in detail and analyses the pricing strategies that the firms have to undertake when they operate in different regimes. The case study on Toyota is considered next, which indicates that firms competing in various structures does not only have to focus on price and quantity ceteris paribus, they also have to consider external and internal variables that have a bearing on these decisions.
Introduction to Market Structures
Market structures are important parts of economic theory as they model market behavior that can help economists explain activities in industry with ease. Market structures, hence are basically models that define market behavior with respect to certain criteria so that it becomes simpler to compare events in real life to the postulated scenario as described in theory in order to be able to determine casualties and to define optimal strategies that firms operating in different market structures can use.
Bennett, D., Hagiwara, Y., & Kitamura, M. (2011, September 5). Toyota Bets on Japan. Bloomberg Businessweek, pp. 70-73,. Retrieved from http://web.ebscohost.com/ehost/detail?sid=fbe40510-c02e-4a4c-afc8-b21dbb1445c3%40sessionmgr11&vid=1&hid=10&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=60477158
Cusumano, M.A. (2011). Technology Strategy and Management Reflections on the Toyota Debacle. Communications of the ACM, 54 (1), 33-35.
John Petersen (2011). Bernstein and Ricardo Report: Cheap Will Beat Cool in Vehicle Electrification. Retrieved from http://www.altenergystocks.com/archives/2011/11/bernstein_and_ricardo_report_cheap_will_beat_cool_in_vehicle_electrification.html
Lipsey, R.G., & Chrystal, K.A. (2007). Economics. Oxford: Oxford University Press. Retrieved from http://books.google.com.pk/books?id=HgXWV8JMC10C&printsec=frontcover&dq=Economics+lipsey&hl=en&sa=X&ei=qPIuT9DdPM7wrQeQ_LzYDA&redir_esc=y#v=onepage&q=Economics%20lipsey&f=false
Mergers can also help at least come domestic companies become competitive with international ones. Mergers potentially free up increased money for research and development.
Yes, it is possible for mergers to be beneficial overall. There is no blanket yes or no judgement that applies to whether or not mergers are beneficial. They are generally beneficial if the above conditions are met along with the following conditions: There remains sufficient competition that the newly formed company cannot enforce monopolistic conditions and that there remains freedom of entry into the market sector for new firms.
3. Why are competitive markets considered more efficient than monopolistic markets? Give economic reasons. Give a real-live example of a market that tends to be competitive and one that tends to be monopolistic. Describe characteristics that support your classification. Is there evidence of efficiency or inefficiency in either of the markets you describe?
Competitive markets are considered…
Managerial Economics: Economic Tools for Today's Decision Makers (6th ed.). Retrieved from http://www.coursesmart.com/login .
market orientation strategies affect the acceptability of their products and services among their customers. Even though banks -- above all -- are utilizing old-style approaches of endorsing their financial services and products; their marketing strategies have mainly been controlled by relationship marketing, digital marketing, rivals' strategies, and complete industry behavior. The entire attention of their marketing orientation stratagems is to appeal to new customers in addition to keep the present customers by proposing the most inexpensive and consistent banking services and products at the most reasonably priced fees. As a result, there is a huge necessity to recognize how these marketing orientation strategies truly influence the level of suitability of the general consumers. In order to gather the information a phenomenological study will be used because it is one that focuses on descriptions of what individuals are experiencing and how it is that they experience what they are experiencing. Interviews…
Mike Chen-Ho Chao, & Spillan, J.E. (2010). The journey from market orientation to firm performance. Management Research Review, 33(5), 472-483.
Rojas-Mendez, J.,I., & Michel, R. (2013). Chilean wine producer market orientation: Comparing MKTOR vs. MARKOR. International Journal of Wine Business Research, 25(1), 27-49.
Zolfagharian, M.A., & Cortes, A. (2010). Linking market orientation to strategy through segmentation complexity. Journal of Business & Economics Research, 8(9), 79-91.
market case analysis for Verizon FiOS TV offered by Verizon Communications. The analysis consists of product, pricing, promotional, and distribution strategies which Verizon Communications should follow in order to operate in the industry in the most competitive and profitable way. The analysis of industry and competition is also given as a part of marketing research strategy.
Verizon Communications is one of the leading communication services providers in the World. Its major products and services include Verizon FiOS TV, FiOS Internet, FiOS Digital Voice, set-top box, and receiver sets. This paper presents a marketing analysis for Verizon FiOS TV -- one of the most successful communication services offered by Verizon Communications in the United States and some other countries. Verizon FiOS TV is a high quality fiber optic cable network for home television entertainment. Verizon Communications offers its Verizon FiOS TV in all the major cities and towns of the United…
Kotler, P., Brown, L., Burton, S., Deans, K., & Armstrong, G. (2010). Marketing, (8th ed.). U.S.: Prentice-Hall
Kurtz, D.L., MacKenzie, H.F., & Snow, K. (2010). Contemporary Marketing, (2nd ed.). Toronto: Nelson Education
Lamb, C., Hair, J., & McDaniel, C. (2012). Essentials of Marketing, (7th ed.). Ohio: South-Western Cengage Learning.
Lancaster, G., & Withey, F. (2007). Marketing Fundamentals, (2nd ed.). U.K: Butterworth-Heinemann
Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense pressure to perform. The amount of capital investment investments required to get a drug from conception, through clinical trials and into the market is enormous. The already high-strung pharmaceutical industry is increasingly investing greater amounts of resources in search of the next "blockbuster" drug that can help them gain market position and profits. Laws, regulations and patents are important to the industry while spending billions of dollars in ensuring the copyright of their products.
It is the intention of this…
Ansoff, H.I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124.
Ansoff, H.I. (1965). Corporate Strategy. New York, NY: McGraw-Hill.
Ashour, M.F., Obeidat, O., Barakat, H., & Tamimi, A. (2004). UAE Begins Examination of Patent Applications. Tamino.com. Retrieved January 18, 2004, from the World Wide Web: http://www.tamimi.com/lawupdate/2001-01/intprop.htm
Bain, J.S. (1954). Economies of scale, concentration, and the condition of entry in twenty manufacturing industries. American Economic Review, 44, 15-36.
Efficiency and Cost of Production
Production efficiency is defined as the level at which a company is no longer capable of producing additional amounts of a commodity or good devoid of lowering the level of production of another product. Efficiency in production is attained and realized when a product is manufactured and formed at its least average total cost. It outlines sufficient production devoid of wasting important resources (Investopedia, 2016). In delineation, economies of scale are the factors that make the average cost of commodity production and manufacture to decrease as the volume of its output rises (The Economist, 2008). Internal economies of scale are cost savings that accrue to a company irrespective of the market, industry or setting in which it operates. On the other hand, external economies of scale are those that profit a company owing to the manner in which its industry is organized (The Economist, 2008).…
The Economist. (2008). Economies of scale and scope. Retrieved 24 August 2016 from: http://www.economist.com/node/12446567
Carlino, G. A. (2012). Economies of scale in manufacturing location: theory and measure (Vol. 12). Springer Science & Business Media.
Investopedia. (2016). Production Efficiency. Retrieved 24 August 2016 from: http://www.investopedia.com/terms/p/production_efficiency.asp
Market in Early epublic
James Henretta is a history professor for the University of Maryland. In his article about the market in the early republic, Henretta (1998) outlines the structure of the market during that time period. He opens by pointing out that at the time there were two competing views of what the market should look like. One view, that of Hamilton and the Federalist party, was to "use the power of the state to assist monied men ... to pursue a capitalist path of domestic commercial development" (p.290). Such an approach would focus on building a strong banking industry to support the capitalists. The other approach, as advocated by Jefferson, Madison and the Democratic-epublican party, preferred a model that supported farmers, artisans and other small businesses. Incentives would be offered for these to produce for export markets, a "subsistence-plus" model that allowed people the means to survive while…
Henretta, J. (1998). The market in the early republic. Journal of the Early Republic. Vol. 18 (2) 289-304.
International Financial Markets and Institutions:
Throughout the globe, today's landscape of international financial market and institutions has continued to experience several changes that require practitioners to examine new models. The need for practitioners to examine new models that are relevant to the state of these markets and institutions has also been necessitated by the recent events that contribute to financial crises, which have been very dramatic. Actually, the recent financial crisis has had significant impacts on the financial institutions and markets resulting in the need for changes. International financial markets and institutions have become an important aspect of economies because they affect daily life. This is primarily because they involve the huge flow of different types of funds in the entire economy that in turn impact the profits of businesses, production of goods and services, and economic well-being of countries. In some cases, the events in these institutions and markets…
Accounting Education (2010), International Capital Market, Accounting Education, viewed 7
Australian Securities Exchange (n.d.), Absolute Return Funds, Australian Securities Exchange,
viewed 7 June 2012,
Production and Market Competition
Microeconomics Module 3 - Case Production, Costs, Profits Cost Profit in assignment, review reference material: Rittenberg Libby T. Tregarthen. (2009). Chapter 8: Production Costs. Sections 1-4 Principles Microeconomics.
Choice of factors of production
A firm's choice of factors of production to change will be determined by likely outcomes of the change. In the short run, a firm can only increase its variable cost. The required consideration in this case is marginal return. The needs to assess whether increasing a variable cost leads to; increasing marginal returns, diminishing marginal returns or negative marginal return. In the long run, a firm's production factors can all be changed. The firm will need to consider the marginal benefits and loses from capital or labor increments.
The considerations that the restaurant manager need to have is the likely change on its cost function. The manager should also be guided by the…
Farmers' markets: A history
Farmers' markets are often praised as the solution to many of our nation's food problems. "Farmers markets are an integral part of the urban/farm linkage and have continued to rise in popularity, mostly due to the growing consumer interest in obtaining fresh products directly from the farm" (Farmers Markets, 2012, USDA). Farmers' markets are defined as places were farmers can sell products directly to consumers. The products are believed to be more likely to be locally grown and the food sold there is viewed as having a lower carbon footprint regarding transportation. According to the USDA: "farmers markets allow consumers to have access to locally grown, farm fresh produce, enables farmers the opportunity to develop a personal relationship with their customers, and cultivate consumer loyalty with the farmers who grows the produce" (Farmers Markets, 2012, USDA). In an age in which so many people feel disconnected…
Etter, Lauren. (2010) Food for thought. The Wall Street Journal. Retrieved at:
Farmers markets. (2012). USDA. Retrieved at:
The region's labor force was unable to cover the needs of the construction activity, which allowed for many immigrants to come and work here in the constructions sector.
But with the new economic conditions, it is expected that the level of constructions in the region will significantly decrease. New constructions mean new customers for TOTO. Less construction means less customers for the company.
Also, given the new economic and financial circumstances, it is expected that individuals' in comes will experience a decrease. This means that they may not invest in purchasing new toilets unless they absolutely need to.
In other words, the global economic and financial conditions that are also reflected in Catalonia may affect the company's initial sales on this market. The company's estimations regarding the volume of sales may prove to be optimistic.
However, a marketing campaign and a pricing strategy in accordance with the new economic and…
1. About TOTO (2009). TOTO USA, Inc. Retrieved April 15, 2009 from http://www.totousa.com/Default.aspx?tabid=71 .
2. Catalonia (2009). Wikipedia, the free encyclopedia. Retrieved April 16, 2009 from http://en.wikipedia.org/wiki/Catalonia .
3. Demographics (2009). IDESCAT, Official Statistics Website of Catalonia. Retrieved April 17, 2009 from http://www.idescat.cat/en/ .
4. Developing a Marketing Campaign (2009). CEW Publications. Retrieved April 17, 2009 from http://www.4hb.com/0107flmarketingcampaign.html.
Strategy Formulation: Evaluating Efficiency and Effectiveness
For any business to continued growing over time it must balance the strategic formulation of its business model with the implementation of strategies (Buttner, 2006). There is however, an inherent conflict between strategic formulation on the one hand, or effectiveness, and the implementation of strategies, or efficiency, on the other. As markets change and economic conditions vary by country and region, strategy formulation and implementation are forced to flex or change over time to keep serving customers and generating revenue. The intent of this analysis is to explain how strategic effectiveness becomes more critical the greater the uncertainty there is in a given industry or geographic market. The effectiveness of a business must also be based on a solid foundation of agility and market focus (Dandira, 2011). Efficiency must be increasing in speed and accuracy of execution in highly competitive markets, yet must be…
Bettina Buttner. (2006). Effectiveness vs. Efficiency: Growth-Accelerating Policies in a Model of Growth without Scale Effects. German Economic Review, 7(3), 297-316.
Martin Dandira. (2011). Involvement of implementers: missing element in strategy formulation. Business Strategy Series, 12(1), 30-34
Desposito, J... (2010, October). With iPad Sales Soaring, Are Netbooks Dead? Electronic Design, 58(14), 13.
Meskendahl, S.. (2010). The influence of business strategy on project portfolio management and its success - A conceptual framework. International Journal of Project Management, 28(8), 807.
Wal-Mart's facilities are designed for logistics efficiency
In a business world where lack of sustainable infrastructure leads to unorganized logistics and primeval warehouses, Wal-Mart has embraced a revolution. Wal-Mart is the leading global retailer that has set benchmarks for its competitors. The store is expanding at a rapid rate. Its stores are well-known for their tough negotiation with suppliers; this forces the competitors to lower their prices. All this is in the hope that their customers will get quality products at the cheapest price. Wal-Mart has been successful in establishing its presence in the global markets through their cash and carry stores. The retailer is still expanding in other countries such as India (Bonacich & Wilson, 2008).
According to the company's senior manager, logistics efficiency remains at the heart of the company's operations for the purpose of achieving the top position ahead of its competitors. Wal-Mart owns the most sophisticated…
Mentzer, J. (2000). Supply Chain Management. Belmont, CA: SAGE.
Lee, H., & Lee C. (2006). Building Supply Chain Excellence in Emerging Economies. California:
Bonacich, E. & Wilson, J. (2008). Getting the Goods: Labor, Ports, and the Logistics
More advanced MIMO techniques can increase performance well beyond the current limits of data rate and reach" (p. 238). It would also appear that a growing number of vendors are recognizing the inherent constraints involved in the previous MIMO configuration and are developing superior alternatives. In this regard, according to Hedayat and his associates (2007), "Many MIMO systems for WiMAX are being developed without beamforming, and although it helps in robustness and can add some capacity, MIMO does nothing for the uplink. The result will be an uplink limited system that either has very slow uplink and frequent coverage holes, or a system that requires many more base stations and cell sites for universal coverage" (p. 8). Navini is in the process of introducing a new standards compliant MIMO solution that it calls "Smart MIMO"; Smart MIMO applies adaptive beamforming to MIMO in order to provide additional benefits beyond what…
References practical guide to WiMAX antennas: MIMO and beamforming technical overview. (n.d.) Motorola: White paper.
Brooks, a.C. & Hoelzer, S.J. (2001, May 15). Design and simulation of orthogonal frequency division multiplexing (OFDM) signaling: Final report.
Chen, S., Ahmad, N.N. & Hanzo, L. (n.d.). Smart beamforming for wireless communications: A novel minimum bit error rate approach. Department of Electronics and Computer Science
University of Southampton, Southampton, U.K.
Cimini, L., Jr. (1985, July). Analysis and simulation of a digital mobile channel using orthogonal frequency division multiplexing. IEEE Transactions on Communications, 33(7), 665.
79 in 2003 to 7.27% in 2009. In addition, evenue Per Employee increased from $176,089 in 2003 to $192,618 in 2009. Wal-Mart has defined a series of internal strategies that allow them to capitalize on asset efficiencies and coordinate them to increase profits over the long-term. An example of this type of strategy is the reliance on continual supplier relationship management significantly improving the company's asset turnover from 10.38 in 2003 to 11.61 in 2009. Wal-Mart also relies on an intensive knowledge and information sharing network that includes pricing and sales uploads every night from each of their stores via satellite link. This data is then analyzed in the Bentonville, Arkansas headquarters and used for managing inventories, pricing, and suppliers more effectively than their competitors. This is also the factor leading to the company's higher inventory turns and more efficient use of assets as well.
Assessing the Price/Earnings atio
Chiou, L. "Empirical Analysis of Competition between Wal-Mart and Other Retail Channels." Journal of Economics & Management Strategy 18.2 (2009): 285.
Mya Frazier. "Marketing in Bentonville: Now it's serious. " Advertising Age 13 Feb. 2006: 34
Mottner, S., and S. Smith. "Wal-Mart: Supplier performance and market power " Journal of Business Research 62.5 (2009): 535.
Sodhi, M., and B. Son. "Supply-chain partnership performance. " Transportation Research. Part E, Logistics & Transportation Review 45.6 (2009): 937.
Moral Criticisms of the Market
Moral Criticisms Market This assignment requires read article Ken S. Ewert (found eading & Study folder). Note article, Ewert defending free market "Christian Socialists." He states position a rebuttal
Moral criticisms of the market: A critique of Ewert's analysis
It is interesting to read Ken S. Ewert's 1989 criticisms of 'Christian socialists' in light of current debates on other types of economic policies today. Ewert portrays Christian, leftist defenders of socialism as impervious to logic, in contrast to other former critics of capitalism, who grew more acclimated to capitalist principles in light of the failure of the Soviet Union Similar criticisms are made of 21st century religious fundamentalists, who stress the need for private enterprise to address societal problems 'on principle,' even when public regulation might be helpful and who try to define science, including science education, in religious terms rather than in terms of…
Ewert, Kenneth. (1989). Moral criticisms of the market. FEE. Retrieved:
Wal-Mart's most obvious image is that as a low-cost provider. The slogan "Everyday low prices" is common throughout the store and many goods are signed indicated that they have been subject to a recent price reduction.
Wal-Mart does appear to want to establish a strong presence in the community. The store is large, as is the parking lot. There is a clear intention to draw a substantial number of customers from the community and to become a major retailing force in the area. The location is a primary form of marketing for the company. Geographically, the location is out of the way, but physically its large presence makes stands out even among other box stores. And the Wal-Mart is much larger than conventional retailers. It would take a long time to walk past the Wal-Mart, and it cannot help but be noticed by all who pass it. Wal-Mart does have…
This is because, the efficiencies in the market are: providing no kind of leverage to these individuals. At which point, any kind of advantage that they may have would be eliminated. This is important, because it provides good insights, as to how efficient the markets really are. As a result, this is what will reduce the underlying returns every single year. The author is an economist with Oxford University. (urton 2005)
The article that was written by Chen (2005), discusses how the EMH theory can be able to provide the most relevant information surrounding stocks. Yet, when this was compared against computer-based programs, they were able to identify changes in prices at least 50% of the time. This is important, because it is showing how the changes in the expectations for stocks, can be more accurate when using various programs. Once this takes place, it meant that traders and investors…
Basu, S, 1977, 'Investment Performance of Common Stocks,' Journal of Finance, vol. 32, no. 3, 663 -- 682.
Bont, W, 1985, 'Does the Stock Market Overreact,' Journal of Finance, vol. 11, no. 30, 793 -- 804.
Brenner, M, 1977,'the Effect of Model,' Journal of Finance, vol. 32, no. 1, 57 -- 74.
Brenner, M, 1979,'Sensitivity of the Efficient Markets,' Journal of Finance, vol.34, no.4, 915 -- 933.
According to the same source, the Australian market proves to be very fertile for the U.S. companies which already account for the greatest import share (over 50% in 2004). Such data are outlined by the following table:
Total market (million of dollars)
Total imports (million of dollars)
Imports from U.S. (million of dollars)
2002 2004%Change 2002-2004%Change 2002-2004%Change Australia 950-1400 47% 380-560 47% 185-285 54% 51% Source: http://www.buyusainfo.net/docs/x_4239321.pdf.
The U.S. home security market is another outlet offering promising perspectives. According to Frost & Sullivan's report (http://www.researchandmarkets.com/reportinfo.asp?report_id=365296),one of the levers responsible for increased demand is the emergence of new homes as a result of the low interest rate. The U.S. Census ureau studies showed that, in 2002, 1.7 million new houses were built in comparison with 2001 when 1.6 million new constructions were made. Moreover, the number was expected to grow in the near future.
Other reasons for a…
Brown, C., (2000). Australians' attitude to security. On the Internet at: www.infolink.com.au/articles/A4/0C0026A4.aspx.Retrieved February 20.
Best Export Markets for U.S. Security and Safety Equipment (2005). On the Internet at: www.buyusainfo.net/docs/x_4239321.pdf.Retrieved February 20
Environmental Scan of the Security Industry (2006). On the Internet at http://www.asial.com.au/default.asp?page=/media%20centre/research+and+articles/environmental+scan+of+the+security+industry.Retrieved February 20, 2007.
Home Security Market Goes Hi-tech (2006). On the Internet at: svconline.com/resav/hitech_home_security_06192006. Retrieved February 20, 2007.
Dell Computer Future Market Condition: Outlook & Analysis
At present, the current structure of the PC market is a market structure closer to one of perfect competition, with a very buyer rather than seller friendly focus. Many buyers and sellers and a high level of price volatility characterize the PC industry. However, no market is a textbook definition of any market structure. Although there are many products in the PC industry, they are not all exactly similar in nature and with many substitutes, and there are higher barriers to industry entry than in other competitive market structures -- thus this state of perfect competition is somewhat limited. (Investopedia, 2005) But overall, Forbes Magazine has said the PC market growth will moderate in 2005 due to a lack of significant new product introductions in a too-competitive marketplace. ("Market Share," 2005)
Impact of New Competitors
No new competitor has quite…
Bean, Michael. (2005) "Anatomy of A Price War." Forio. Retrieved 6 March 2005 at http://www.forio.com/pricing20010912.htm
'Dell Is Named in Lawsuit Over Financing." (Mar 4, 2005) Forbes. Retrieved 7 March 2005 at http://www.forbes.com/associatedpress/feeds/ap/2005/03/04/ap1863170.html
Investopedia. (2005) "Economics Basics: Monopolies, Oligopolies, and Perfect Competition." Investopedia.com. Retrieved 6 March 2005 at http://www.investopedia.com/university/economics/economics6.asp 'Market News," (15 Jan 2005) Forbes. Retrieved 7 March 2005 at http://www.forbes.com/markets/company_news.jhtml?ticker=DELL
As part of the research triangle, Raleigh has a significant portion of its population that fits the target market. For the Farmery to succeed, it only needs to capture a small portion of the market share. This is especially true because the store has a small footprint, and has the flexibility to set up on vacant lots without the costs of either renting or developing fixed real estate. The Farmery therefore needs to focus on two or three key elements to ensure adequate market penetration.
The first of these is location. Let it not be understated that location, location, location is critical to the success of any retail business. Because food is not normally something that people are willing to travel more than a few miles for, it is important that the Farmery target a neighborhood where there is a high concentration of individuals that fit the target market. There…
Falk, T. (2012). Detroit turns shipping containers into condos. Smart Planet. Retrieved December 4, 2012 from http://www.smartplanet.com/blog/bulletin/detroit-turns-shipping-containers-into-condos/5900
Food Marketing Institute. (2012). Supermarket facts. Food Marketing Institute. Retrieved December 4, 2012 from http://www.fmi.org/research-resources/supermarket-facts
Greene, B. (2012) the Farmery. Kickstarter.com Retrieved December 4, 2012 from http://www.kickstarter.com/projects/farmery/the-farmery
Imlay, T. (2006). Challenges in today's U.S. supermarket industry. Microsoft. Retrieved December 4, 2012 from http://msdn.microsoft.com/en-us/library/aa479076.aspx
organizations customer markets fundamental business models • In a 3- 5-page paper, apply framework -market analysis (external labor markets, internal labor markets, capital markets, customer markets) conduct a compensation strategy analysis competitive landscape organizations • In addition, organization, highly influential, large population job organization apply question, "What economic difference organization performance job, poor, mediocre outstanding?" Post a multiple market analysis.
Competitive Landscape Analysis on Three Companies
Coca Cola Competitive Landscape Analysis
External Labor markets
Coca Cola is one of the most well-known companies on international level. The company is an established brand with high popularity. Coca Cola has built in time significant emotional attachment to this brand from customers, employees, and business partners. Therefore, it is expected that numerous individuals want to work for the company. Coca Cola has developed a recruitment and selection process oriented towards external sources of recruitment especially regarding entry level and mid level positions. This…
1. Russell, K. (2012). Internal Recruitment: Right or Wrong? HR Magazine. Retrieved May 6, 2013 from http://www.hrmagazine.co.uk/hro/news/1073667/internal-recruitment-wrong .
New York eal Estate and Office Markets
NEW YOK CITY OFFICE MAKET
New York is one of the premiere metropolitan areas of the world, exerting a significant impact on global commerce, finance, media, art, fashion, research, technology, education, and entertainment. The home of the United Nations Headquarters, New York City is an important center for international affairs and is widely deemed the cultural capital of the world. With its unmatched scope of building types, diverse tenant base and extensive transportation system, the city has earned an iconic and prominent place in the global market.
The borough of Manhattan serves as its hub and is the nation's largest single office market with 450 million square feet of space (Brown, 2007). Its office inventory is greater than the next five largest U.S. markets combined and features some of the world's most iconic properties (Beauregard, 2005). This paper explores the current state of…
1. Beauregard, R.A. (2005). The textures of property markets: Downtown housing and office conversions in New York City. Urban Studies (Routledge), 42(13), 2431-2445. doi:10.1080/00420980500380345
2. Brown, J.L. (2007). Demolition in Manhattan Gains Momentum. Civil Engineering (08857024), 77(8), 34.
3. Gong, H., & Keenan, K. (2012). The Impact of 9/11 on the Geography of Financial Services in New York A Few Years Later. Professional Geographer, 64(3), 370-388. doi:10.1080/00330124.2011.603654
4. Gregor, A. (2011). Demand for Office Condos Grows in Manhattan. New York Times. p. 6.
Yet, they do not know exactly what it is that they want. A database would be extremely helpful at this stage as it could offer information on the type of products and services the customers need and the new market could as such be created. A relevant example of an emergent market is constituted by the it products and services within most developing countries. The second evolutionary stage occurs as the products and services introduced in the emergence stage begin to register high levels of sales. At this level, more producers are interested in promoting their own products within the growing market and the future expectations related to it are generally positive. The growth stage of the market is also supported by customers, who realize the benefits of the given product, but also by companies which develop and implement strong marketing campaigns.
The third evolutionary level is maturity, a situation…
Grashaw, K., 2009, Recognizing the Eight Demand States in a Market, Kurt Grashaw Marketing Communications, http://www.grashaw.com/articles/EightDemandStates_060809.html last accessed on October 16, 2009
Kotler, P., Armstrong, G., 2005, Principles of Marketing, 10th Edition,, ISBN 7302114358
Perner, L., 2009, Service Outputs, University of Southern California, http://www.consumerpsychologist.com/dist_Service_Outputs.html last accessed on October 16, 2009
Rao, T.P.R., Jain, a.K., Key Concepts for Marketing of Information Products and Services, the International Development Research Center, http://www.idrc.ca/en/ev-114853-201-1-DO_TOPIC.html last accessed on October 16, 2009
The fall in demand derives from the increase in gas prices, which has altered consumer spending habits and encouraged home buyers from buying in outer suburbs. Demand has also fallen because of the lack of easy credit and the high price of homes. Much of the rise was attributable to easy credit, reasonable home prices and low fuel prices. The reversal of these factors has resulted in a steep dropoff in demand, which is causing most of the decline in prices. One exception may be the outer suburbs, however. That is the area where new supply was being created, and so those areas had a large number of new homes constructed. This gives those regions a greater supply problem than inner suburbs. That is why prices have fallen much further in the outer suburbs than they have in the inner suburbs and city. These less desirable areas have suffered steep…
Vincent, Roger. (2008). Gas Prices Latest Worry for Housing Market. LA Times. Retrieved July 23, 2008 at http://www.latimes.com/business/la-fi-homes17-2008jun17,0,2766175.story
Showley, Roger & Pierce, Emmet. (2008). Housing Slump in No Hurry to End. San Diego Union-Tribune. Retrieved July 23, 2008 at http://www.signonsandiego.com/uniontrib/20080716/news_1b16housing.html
Hong, Peter. (2008). Bargain Hunting Picks up as Southern California Home Values Fall Further. LA Times. Retrieved July 23, 2008 at http://www.latimes.com/business/la-fi-homesales17-2008jul17,0,3250369.story
Vincent, Roger. (2008). Gas Prices Latest Worry for Housing Market. LA Times.
Proximity to Major Markets
When they first emerged, the economic agents relied their success and profits on the ability to manufacture and deliver the products needed by the population. Gradually however, the success of the business institutions became more sensitive to a wide array of other issues. Today then, it is insufficient for the companies to simply deliver the needed products and services, but they must anticipate and serve new needs, even before the customers themselves become aware of these needs. The companies must also attract their customers through elaborated marketing campaigns and they must embrace, empower and reward their staff members.
Aside from these, the economic agents must also pay close attention to the place where they locate their businesses. The importance of the business location is critical for the final success of the company as it defines the means in which the customers will have access to the…
Cramer, L. (2006). Ranked #9: Proximity to major markets. Area Development. http://www.areadevelopment.com/corpSurveyResults/oct06/proximity06.shtml accessed on September 19, 2012
Business studies. Location. BBC. http://www.bbc.co.uk/schools/gcsebitesize/business/environment/alocalcommunityrev1.shtml accessed on September 19, 2012
Competitor Product's Market
A short history of the organization and a description of their product
Hostess Brands, Inc. is a company set up in 1930 under the name Interstate Bakeries that later changed to Hostess Brands Inc. In November 2009. The company is located in the United States with its headquarters in Irving Texas. It has an operation centre in Kansas City, Missouri. The company works as a distributor and wholesale baker of snacks in the United States. It owns many brands such as Nature's Pride, Wonder Bread, Bakers Inn, Drake's and Dolly Madison. The company makes and sells cakes, loaves, snacks and rolls under different bakery brands (Smith, 2012).
These brands also make blue berry muffins, cheese Danishes, food cake donuts, honey buns and bear claws among others. Hostess gets revenue through selling of baked goods to mass marketers, supermarkets and stores in the U.S. The privately held bread…
Blythe, J., & Zimmerman, A.S. (2005). Business-to-business marketing management: A global perspective. London: Thomson Learning.
McEachern, W.A. (2012). Microeconomics: A contemporary introduction. Mason, OH: South-Western Cengage Learning.
Smith, A.F. (2012). Fast food and junk food: An encyclopedia of what we love to eat. Santa Barbara, Calif: Greenwood.
Welch, P.J., & Welch, G.F. (2009). Economics: Theory and practice. Hoboken, N.J: Wiley.
Prevent Competitive Markets in the United States
The United States follows a system of "free market economy" in which most businesses are privately owned and where individual producers and consumers determine the kinds of goods and services produced as well as the prices of such products. Competition is a key factor in market economies as it keeps the prices of products in check, forces the competitors to enhance the efficiency of their production process, and drives the inefficient producers out of the market. However, "perfectly competitive market" is largely a theoretical economic concept which does not exist in any country and most countries, including the U.S., follow a system of mixed economy. In such 'mixed economies,' there are several factors which prevent the existence of a perfectly competitive market and the U.S. is no exception to this rule. In this paper, we shall discuss some of the factors that work…
Karier, Thomas. Beyond Competition: The Economics of Mergers and Monopoly Power. Armonk, NY M.E. Sharpe, 1993.
United States (Economy)" Article in Encyclopedia Encarta. CD-ROM Version, 2003
Such markets are known as 'oligopolies.'
As long as it is not created specifically to monopolize commerce in interstate trade
Mohr, and Webb 45)
The change includes increased consumer awareness of the corporate social responsibility (CSR) of a company to companies seeking to make such commitments to CSR marketable to the public. Companies are taking note that their CSR behaviors are important to investors in both mutual and individual investment funds, not to mention direct sales of products manufactured by the company.
This change is a significant one, and is growing in popularity, expanding to include the development of brokers an firms who specialize in different types of socially responsible business investment. Those who have a particular interest in social issues, such as fair employment or local manufacturing and employment can seek out such a broker. While those who are more about environmental issues can seek out a broker who specializes in finding companies that work within the goals of developing sustainable environmental business practices, energy efficiency, the use of…
Southern Cone Common Market: Mercosur
Since the signing of the Assucion treaty signed in 1991, the hoped for benefits for the countries in the Mercosur have not been completely realized for all involved. This work will concentrate on the marketing and trade issues of each country in the region.
The Southern Cone Common Market is a Latin American trade organization that is called Mercosur and was established in 1991 for the purpose of increasing the cooperation in economic efforts in the member countries. Member countries are Argentina, razil, olivia, Chile, Uruguay, Paraguay and Peru. The economies are different from country to country inside the Mercosur region. razil and Argentina were originally at odds and had been for many years top competitors preceding entrance into Mercosur. The goals in Mercosur are gradual elimination of tariffs between the member nations. Since the 1991 signing of the Assuncion Treat trade between the…
The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2004, Columbia University Press.
Kim, Kwan S. & Kim, Seok-Hyeon (2003) "Financial Cooperation in East Asia; Possibilities and Prospects with reference to Other Regional Experiences" University of Notre Dame 2003 Mar 12.
Berlinski Julio (2000) Mercosur Economic Research Network: Serie Brief No. 3 ITDT Instituto Torcuato di Tella (Argentina)
"The Mercosur" [Online] available at: http://www.falkland-malvinas.com/Detalle.asp?NUM=4296
SK Petrochemicals: Understanding the Market Dominator
In a time where more innovative, and eco conscious manufacturing processes are being favored by consumer opinion, SK Petrochemicals is at the top of the market in regards to the industry the company is in. SK Petrochemicals is a South Korean company that works in the field of manufacturing various plastics and chemicals used as adhesives in the manufacturing of various other products like fibers and sheets. The company uses fascinating innovation in its production process, which ultimately results in better quality products with less of a carbon footprint. SK Petrochemicals uses raw PTA "for PET synthesis via direct etherification with EG and is an important intermediate for film, fiber, and bottles" (SK Petrochemicals, 2013). The company started using this innovative production process in 1989 and has been growing in its production capacity ever since.
Fortunately, recent years have shown an evolution of the…
Lee, Charles. (2013). S Korean SK's Q1 petchem operating profit rises 28.5% on year. Platts: McGraw Hill Financial. Web. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Petrochemicals/27913725
SK Petrochemicals. (2013). SKYPTA. Product Info. Web. http://www.skpetrochemical.com/eng/product/skypta.asp
Competitive Market Analysis to Determine the Product's Potential Success
Issues that the automobile industry faces that affect its competitiveness and long-term profitability
The relevance of a competitive strategy for Car Company A is to establish a position within the 4-cylinder engine car market. This will help the company to compete with Toyota Corolla (LE) 1.8L four-cylinder engine competitive forces. As a potential entrant, Car Company A is at a disadvantage in capital markets. Unless it penetrates the Cylinder engine market through diversification, its four-cylinder car will be at an inherently riskier position than the established (LE) 1.8L four cylinder engine of Toyota (Maxton & Wormald, 2013). This will be reflected in the risk premiums Car Company A will be forced to pay to attract capital.
Car Company A will face barriers because other players like Toyota enjoy economies of scale in the industry. This means a decline in a product's…
Maxton, G. & Wormald, J. (2013). Time for a model change: Re-engineering the global automobile industry. Cambridge: Cambridge Univ. Press
MAKETING POCEDUES FO VOLVO'S S60 MODEL
Market Analysis for the Volvo S60
Market Analysis for the Volvo S60
Volvo, a Swedish-based car production company, stands out as the leading manufacturer of premium cars. The company produces luxury cars with the vision to provide to the world the most luxurious desired automobile. The company's mission entails providing the world's most exciting and safest cars for the modern families. By extension company seeks to increase shareholders values.
Firm trust in their brands
Accredited environmentally friendly production process and use
High regard for safety
Good relations with the customer that achieves development of products related to customer preferences
The company following a change of guard seems to have confusion with identifying itself in the market
The products under the company logo appear costly compared other products in the market
Limited market shares and penetration
Grant, R.M. (2010). Contemporary Strategy Analysis, 7th Edition. New York: John Wiley and Sons.
Jan, T.S., & Hsiao, C.T. (2004). A Four-Role Model of the Automotive Industry Development in Developing Countries: A Case in Taiwan. The Journal of the Operational Research Society, 55(11), 110-118.
Trout. J. (2004). Trout on Strategy. New York: McGraw-Hill.
5% of total liabilities. Their retained earnings, on the other hand, total $5.073 billion. The heavy use of retained earnings is partially explained by their view of themselves as a growth company. hile they pay a dividend, Nike prefers to re-invest much of its profits back into expansion. They do not feel that the market has matured sufficiently to stop their aggressive growth strategy. Another consideration in their capital structure is the cost of capital. On account of its low volatility, Nike has a low cost of debt, approximately 6.8% using CAPM. Their long-term debt is primarily a revolving credit facility. The rate, based on their a+ rating, is LIBOR + 0.15%, which would equate to 4.12% based on the October 15th price of the 1-year LIBOR. If anything, Nike could become more financially efficient by increasing their use of debt financing.
Nike places strong emphasis on human resources. They…
Cohen, Marshal (2007). USA: Athletic footwear is significant portion of overall footwear market. Fibre 2 Fashion. Retrieved October 21, 2008 at http://www.fibre2fashion.com/news/company-news/npd-group/newsdetails.aspx?news_id=32512
Some financial information, ratios from Reuters. Retrieved October 21, 2008 at http://www.reuters.com/finance/stocks/overview?symbol=NKE.N
Nike 2008 Annual Report. Retrieved October 21, 2008 at http://media.corporate-ir.net/media_files/irol/10/100529/Areports/ar_06/docs/10k.pdf
Nike 2006 Annual Report. Retrieved October 21, 2008 at
2007 Economic Crisis on American Car market
Effect of the 2008 global economic crisis on automotive industries
Crisis in the United States
Crisis in Canada
Crisis in ussia
Crisis in European markets
Crisis in Asian markets
Effects by other related crisis events
In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will also have a look at how this crisis had affected car manufacturers in other major markets around the world notably Europe, Canada and the prominent Asian markets such as China and India. Finally, we will look at some of the other factors which were important to this event namely the energy crisis since the cost of fuel is directly related to the car industry.
The automobile industry is a very important part…
Lee, C. (2003). Financial Liberalization and Economic Crisis in Asia. New York: Routledge.
Pempel, T.J. (1999). The Politics of Asian Economic Crisis. New York: Cornell University Press.
Arestis, P. (2001). What Global Economic Crisis? New York: Palgrave.
Liou, K.T. (2002). Managing Economic Development in Asia. Westport, CT: Praeger.