With all of these factors contributing to the American auto industry nearly collapsing, the U.S. government had to take into account how critical this is as an industry for the economically ravaged states of Michigan, Ohio, Illinois, Wisconsin and many of the southern states including Alabama, Kentucky and Mississippi. The U.S. government actually had no choice but to bail out this failed industry as at one point it was projected that nearly 250,000 to 350,000 jobs would be directly or indirectly lost as a result of the failure of the American auto industry. Further, foreign auto makers including enault, Daimler Benz, who eventually did buy a significant portion of Chrysler, and Hyundai all began bidding on the assets of American auto manufacturers. Congress was pressure to save this industry and the jobs associated with it. The fact that many in congress owed their jobs to the constituents whose jobs would…… [Read More]
They see alternatives and their consequences as costlier and pay very little attention to them. Rationality exists less in public than in private organizations. A public agency's ends often compromise incompatible interests and neither occasionally nor accidentally. Conflict becomes inevitable and the end-system goes haywire. And the end-systems of public organizations are much more complex than those of private ones. The more complex, the harder to institute courses of action, the more results to evaluate, and the greater the chance to sacrifice some ends for other ends. It would be most helpful to find detailed case studies of organizations sharing a common concept so that they can be compared. From the comparison may develop a plan and rational choice (ranfield).
Planning in the Public Domain
Friedmann (1987) introduced the three concepts of rationality as market rationality, social rationality and a combination of these two. Market rationality derives from a philosophy…… [Read More]
Government intervention can also extend to public goods that cause the private-decision rule to fail in terms of the efficiency rule.
According to Julianle Grand (1991, p. 426), externalities are the focus of market failure, in that they focus on a third party, otherwise uninvolved in the transaction, that is affected by production or consumption. Grand distinguishes between the benefits and costs to such third parties; where the former entails a positive effect to the third party and the latter a negative effect. Markets can then fail when a lower level of activity occurs in the market than is socially efficient, while an overprovision of activity with external costs will also result in greater activity than is efficient.
Grand also mentions increasing returns to scale (Grand, 1991, p. 427), which entails that the average production costs fall with the increase of the production scale. This could lead to market monopolization…… [Read More]
Government can have some influence on market failures, but cannot eliminate them. Conditions of perfect competition are usually created outside the influence of government. Often, government policy contributes to market failure rather than prevents it. Government can, however, reduce the impact of market failure. The programs by which government would do this must be well-conceived and well-executed, however, or they can worsen market failure. An example of this would be the bank bailouts. The government averted the direct market failure of the U.S. banking industry in the short-term, but in the long-term the government probably created a perverse incentive in the banking industry to increase risk-taking, knowing that the bank was not going to suffer the downside risk. Bailouts of the savings and loan industry contributed to this attitude among bankers, the concept of "too big to fail" creating a climate of risk-taking in the industry.
Government intervention has worked,…… [Read More]
In this article there is a hint that Vista is yet another system that requires collaborative software (also from Microsoft) to be utilized effectively and marketing it in quips is ineffective because of this interrelated operating style. (ilcox, Dec. 30, 2007, NP) Any real marketing failure would simply relate to Microsoft's inability to foresee that the complicated nature of Vista would not easily play to traditional marketing attempts, as the benefits cannot sell themselves if users do not see them right away. "The key to effective technology marketing is simple: Articulate real end user benefits. The Vista videos take a very task-oriented approach: You can do this and you can do that. You can do this much more with these two products together." (ilcox, Dec. 30, 2007, NP)
One final thought on the potential aspect of failure as it is related to Vista is that the reality of the OS…… [Read More]
Asymmetric Information and Market Outcomes
In the contemporary business environment, the insurance market has faced challenges in dealing with the problems of asymmetric information, adverse selection, and moral hazard. The objective of this study is to discuss the concept the asymmetric information, adverse selection, and moral hazard in the insurance market. The paper also discusses the market responses to asymmetric information, moral hazard, and adverse selection.
Market esponse to Asymmetric information
Asymmetric information is a type of situation where one party in a business transaction has superior or more information than other parties. In other words, asymmetric information occurs where sellers have superior or more information than buyers. Although, the reverse may happen in some situations. (Lillo, 2013). Potentially, this type of transaction can be harmful because a party in the transaction can take the advantage of the lack of knowledge of another party. The asymmetric information is problematic in…… [Read More]
Japan was once on a stellar track to economic prosperity. The end of the twentieth century saw promising chances for the island nation's economy. In 1991, the government spending was one of the lowest the Organization for Economic Co-operation and Development (OCED) and 31.6% of the nation's GDP (Utt 2008). That same year, Japan's national income was at 86% of the U.S. gross national per capita income, a big improvement from just 20 years ago when the nation was only making 66% of the U.S. per capita income. This was an impressive feat for the nation to embark on. Yet, this was to change in the following years dramatically. During the later decade of the 1990s, the Japanese government took on the practice of vastly increasing government spending as a way to stimulate an economy that was beginning to lag. As the growth of the economy began to go stale,…… [Read More]
com. In case of several companies, enhancing customer relationships is among the most capable features of e-commerce. However, whereas the Internet has presented the consent of a novel method to draw and communicate with the customer, hardly few enterprises have discovered a method to efficiently manage interactions with their customers on the Internet. (David, 2000)
The real skill is involved in making the device suitable to accomplishment of the business strategy and also makes profit persistently. (Howard, 1999) This makes McGrath and Heiens to describe the failures of Internet startups as a moot testimony that "the Internet is a tool, not a panacea" and that a "sound business strategy is always a prerequisite for success" Therefore, even though many successes have appeared to day on the Web in the online industry and in the digital forms in general still more are to be explored for accomplishing long-term goals of the…… [Read More]
It revealed the fact that customers were willing to buy chocolate in order to be in fashion.
The government, which is a communist one, has imposed chocolate importers to mark the country of origin in order to provide the customers with the accurate information about the products they offer.
Size, number, and financial strength of competitors. If we take into consideration the report mentioned above, the main competitors are: Dove (38.61%), Cadbury, Le Conte, Nestle, Hershey's, Golden Monkey, Ferrero Rocher, M&M's, Tresor Dore and Shenfeng. These ten producers account for 90% of the chocolate market, while the first three cover about two thirds of the market share. However, among these ten best companies we can only depict two internal brands. These are Golden Monkey (2.94%) and Shenfeng (1.58%). Due to the new regulations regarding the percentages and quality of the ingredients used, many national producers may not be able to…… [Read More]
Failures of Merger
Failure of Mergers
The objective of this study is to examine why it is that most mergers fail and will provide real-life examples of the failure of mergers. Toward this end, this work will examine relevant literature in this area of study and specifically academic and professional literature and publications that are peer-reviewed in nature. The work of Weber and Camerer (2003 ) entitled "Cultural Conflict and Merger Failure: An Experimental Approach" reports that most mergers fail and that failure occur "on average in every sense: acquiring firm stock prices tend to slightly fail when mergers are announced; many acquired companies are later sold off; and profitability of the acquired firm is lower after the merger." (Weber and Camerer, 2003) There is a great deal of conflict reported during the process of a merger that results in a high rate of turnover." Disappointment was expressed by participants…… [Read More]
MAKET ANALYSIS & PODUCT INNOVATION
Market Analysis and Product Innovation: Facebook Inc.
In an increasingly competitive environment, business organizations must remain innovative. They must deliver offerings that resonate with the ever changing needs of the consumer and the operating environment (Akbar & Tzokas, 2013). This often calls for product innovation, which has been marked as a crucial driver of competitive advantage in the contemporary marketplace (Song & Chen, 2014). Nonetheless, product innovation is often not a straightforward undertaking. An organization must have comprehensive understanding of the environment in which it operates, especially in terms of the threats and opportunities it presents, for its products to succeed in the marketplace (Bart, 2002). The organization must also effectively utilize its resources and capabilities to overcome those threats and take advantage of the opportunities (Holahan, Sullivan & Markham, 2014).
One organization that is an epitome of innovation in today's business environment is Facebook…… [Read More]
Health Care Economics
Monopsony power is defined as a situation where there is only a single buyer in the market (Investopedia, 2014). In a monopsony situation, all of the bargaining power rests with the buyer, such that the seller is a price taker, and also a taker on term as well. The buyer therefore pays what it wants, and on whatever terms. A monopsony is an unusual natural market condition. In some situations, monopsony is related to monopoly, a good example being health care in Canada, where the government is the employer. With a government monopoly, there is also only one buyer for health care supplies, and health care labor. Unions can also constitute a monopsony in labor, in situations where non-union workers are prohibited. One must work to the terms that the union has negotiated, or not at all. This paper will look at the nursing shortage in the…… [Read More]
" During the third and final stage, the European Central bank would be in operation. According to the agreement, this was to occur no later than 1999 and for three years thereafter Euro coins and banknotes would be issued (Eichengreen and Frieden).
By 2002, the Euro had been implemented as the single currency for member states. However, the implementation and consequent use of the Euro appeared to be a bit rocky. According to an article found in the journal Challenge, the value of the Euro had fallen slightly. The author blamed this fall on the central bank and its efforts to shore up the Euro (Bibow). The author contends that this unrelenting support stifled economic growth. According to the article
Between the start of 1999 and October 2000 the euro lost some 20% of its initial external value (even 30% vis-a-vis the U.S. dollar). After a brief rebound toward the…… [Read More]
Externalities in the Housing Industry (Additional Pages Request)
The housing industry is quite profitable a venture, though it is one that has caused many problems in today's economy, for two main reasons. First, the housing market has been quite volatile, simply because it has been under-regulated in certain areas and has therefore been the subject of a game of chess led by big corporations. Second, the housing industry is often a local matter, and is thus something that cannot be easily moved, transported, or transplanted, and for this reason it is in many ways unique. In order to better understand the way in which this industry works, this paper will discuss externalities, goods and services within this arena, as well as the many other concepts that relate to these terms.
Just as many other sectors of an economy, the housing industry is subject to positive and negative externalities.…… [Read More]
Once this data is captured, the third objective of building an equilibrium-based model that conceptually defines the relationship of companies who chose to invest from a strategy standpoint over those that were functionally-driven and the differences in profitability as a result. This model will also be used as the basis of creating a four-step maturity model that will attempt to show how over time strategy-based implementations are more effective at creating collaboration within and between firms choosing this approach.
The most significant benefit of this study is determining what factors contribute to the success or failure of CM systems, taking into account implementation planning and strategies to mitigate resistance to change. The success or failure of CM system implementations is often with the area of change management and alignment of these systems to business strategies (Foss, Stone, Ekinci, 2008). The proposed research will show through an equilibrium model and…… [Read More]
market mix as it apply to the product and discuss why each of the 4-P decisions would be important when marketing my product
Over the past year, the I Pad has become one of the most sought after products on the market. Part of the reason for this is because, it has features and applications that are changing the way many people receive their personal information. As they are demanding smaller and more portable devices that are offering many state of the art features. (Ross, 2010)
When you apply this to the four P's of marketing mix, it is clear that this device has a number of distinct advantages over competitors. Evidence of this can be seen by looking at how it compares to the different elements of this strategy (i.e. The product, promotion, price and placement). As far as product is concerned, what makes the I Pad so unique…… [Read More]
Antitrust Practices and Market Power
The modern business environment is increasingly characterized by the proliferation of emerging monopolies in various industries. One of the industries that have experienced an increase in budding monopolies is Information Technology, particularly with the growth and development of social media and networks. Technology companies have rapidly developed into monopolies because of the connection between attractive business opportunities. The growth of leading technology companies into monopolies has also been fueled by their efforts to gain and maintain market power. However, some of these companies such as Google, AT&T, Standard Oil, Microsoft, and Facebook have been investigated for antitrust behavior.
Similar to Google, Facebook is company whose growth and development is partly attributed to the failure by Microsoft to strangle it like it did to Netscape a decade before. Facebook's business and operations are entirely built on focusing on developing network effects since the firm's value for…… [Read More]
6. Success throughout Latin America was driven by the build-out of banks and financial institutions in Brazil and other nations, combined with mergers and acquisitions to strengthen their overall market position.
7. Walmart learned valuable lessons globally and decided to revamp stores and remodel the oldest ones to further increase the quality of the shopping experience in the U.S.
8. Walmart learned how powerful having good relationships with foreign governments can be when the Chinese communist party allowed them to open 10 wholly owned subsidiaries and also pursue joint ventures throughout the nation. The key lesson: wining the trust of a foreign government is key to global growth.
9. Brazilian market expanding as Walmart finds new approaches to selling the idea of mass merchandising to this nations' citizens. Growth in India, Russia and South Africa all driven by Walmart's ability to better understand variations in cultural requirements and needs.
10.…… [Read More]
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…… [Read More]
VON Calls on Foreign Markets
von believed that having regionalized new product development centers, supply chain operations, marketing and sales divisions would make them more competitive in foreign markets. Ironically the exact opposite happened, as the case illustrates. von's performance was drastically reduced and the duplication of effort crippled the organization. Unfortunately the highly decentralized, market-driven organizational structure that von had such high expectations for failure to deliver the results needed to keep the company growing. The net outcome of the highly decentralized organizational structure was a massive duplication of effort and cost overruns; the organizational structure turned into more of a liability than strategic asset. The goal of this case analysis is to explain and recommend how von can regain profitability while also attaining a higher level of internal new product development, production and selling efficiency. nother objective of this analysis is to evaluate how von can attain a…… [Read More]
Dispersed Knowledge Within Markets and Companies
As the world has penetrated into the age of advancements and innovations, it has given rise to increased globalization, which has resulted in intense and fierce competition in the marketplace on a universal platform. Companies and firms on a broad spectrum are now confronting numerous new challenges because of the competition that has rapidly grown within the marketplace. Therefore, it has become significant for the companies to be vigilant so that they can develop and implement the systems that meet the requirement of innovation of the current market and have the potential to act promptly in response to the new changes (itzer 2011).
A general perception has been developed that multinational corporations were the widespread firms that extensively practiced the dispersed knowledge. The globally dispersed locations of the firms confronted a need to assimilate geographically dispersed knowledge in order to create value to the…… [Read More]
At one point or another in everyone's lives, they have probably felt like a failure. However, not everyone deals with failure in the same way. Some people take failure so harshly that they become suicidal. Others become isolated or depressed. Many realize that failure is a fact of life and bounce back relatively quickly, making the choice to use failure to create something good.
When Sergio Zyman, an executive with Coca-Cola, made the mistake of taking Coke off the market and replacing it with New Coke, it was a total failure and an extremely public one at that (The Recovery Times, 1995). Zyman was basically driven out of the company because of his failure.
However, while many people would have felt like crawling under a rock, Zyman refused to let failure get the better of him. He created his own consulting firm and was soon hired back by Coca-Cola.…… [Read More]
All businesses are started with the intention of success, although this intention alone cannot guarantee immunity from failure. Whether or not businesses experience success or failure depends on several factors. Some of these factors are in the control of the business owners themselves, such as quality of management, while some factors are out of the control of the business owners, such as current economic climate. The following discussion highlights factors involved in why businesses succeed or fail, and how certain factors such as sex of the business owner or location of the business play into the equation.
avindran (2008) described how studies have demonstrated that approximately 50% of small businesses experience failure within their first four years of existence. This failure is most often a result of lack of knowledge regarding proper workings of businesses and poor management (avindran, 2008). Another crucial factor involved in the failure of…… [Read More]
The largest majority of subprime housing property has been noted in this study to be located in minority and low-income neighborhoods and therefore the subprime lenders are flooding the housing markets and specifically the low-income housing market with housing in neighborhoods that generally do no bring healthy prices on the housing market. With the housing market flooded with this class of housing the properties values of these homes will be pushed even lower and this with interest rates simultaneously at their lowest possible rate. In fact, what has resulted from subprime lending practices is the lenders worst nightmare in that prices are very low, interest rates are very low, and prospective buyers are very low as well.
Isidore, Chris (2008) New Recession Worry: ank Failures - Recession Watch 2008. 3 March 2008. Online available at http://money.cnn.com/2008/03/03/news/economy/bank_failures/index.htm?ref=patrick.net
Goldman, David (2008) Fed Officials: Housing Crisis Critical. Eyes on the Fed -CNN…… [Read More]
Reasons for Failure
usiness failures have become a properly investigated field of study in the past few years as a struggling economy and an overall difficult business environment have combined to discourage potential entrepreneurs from entering the market place and to cause many existing business owners / entrepreneurs from continuing their endeavors. This interest in business failures is precipitated by the fact that the number and nature of business failures impacts negatively on the overall business climate and examining possible causes in an effort to forestall further such failures is vital to maintaining a healthy business environment. The emphasis in recent years has shifted from examining why and how businesses fail toward an analysis of how to avoid and prevent business failures.
The failed business that I chose to review was a small ice cream / restaurant in my neighborhood. The name of the business was Charlie's Ice…… [Read More]
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…… [Read More]
The lack of cultural sensitivity and focus led to EuroDisney only attaining 5% of their anticipated volume on opening day. If all of these problems with the marketing of the concept to the government, selection of leaders, definition of concessions and rides weren't enough, the pricing was outside the range of what many French families could afford. In the first years of its existence, Disney partnered with high-end rail service Eurostar to get families from England, which had a strong conversion rate with the British Pound, to visit. This further angered the French, and also made Disney appear elitist, which is a big problem in France, which prizes its egalitarianism. It has since cost Disney well over $1B to manage their way out of this problem (Curwen, 1995).
Microsoft Windows Vista
Introduced in January, 2007, Windows Vista is easily the worst operating system produced in the last ten years. It…… [Read More]
The level of the investment also isolated them more in the case of a failure. They paid attention to the wrong details. Disney acted on American views of Europe rather than on native views, which could identify the important cultural differences. It appeared that the managers were too confident in their success to research the small details about European cultures.
In planning Euro Disney there were not any contingency plans put into place. The attitude towards customer habits was very complacent. They assumed that there would be so many customers every day, each staying an average number of nights spending an average amount of money. In America this would have worked because there is already a well established theme park culture. The European market proved to be a lot more unpredictable.
Up until now, Disney's venture into China has been anything but magical. The Hong Kong theme park, which opened…… [Read More]
Aside from the obvious impact upon the Ford employees who found themselves out of jobs, a general effect was the increased unemployment rate. And this was not only because of the positions lost within Ford, but also because of the jobs indirectly lost due to the crisis at the American manufacturer. In a more simplistic formulation, the automobile maker had ongoing contracts with various suppliers and other intermediaries, purchasing various technologies and vehicle components. Once the demand for Ford automobiles had decreased and their supremacy was lost to the Japanese producers, they no longer required the services of all of their purveyors. Then, as the demand and production became reduced, there was also limited need for dealers store to sell the cars. Ergo, additional jobs were lost and the lives of more and more individuals were impacted.
The negative outcome could have been avoided had the company been more receptive…… [Read More]
Market growth in wheelchairs is favorable for a few reasons. The growth in the industry is concentrated in higher-priced segments, with 12-15% each. This means that the relevance of the standard wheelchair is declining, despite that segment remaining the highest volume wheelchair at around 208,000 units or 61.3% by volume and 31.4% of dollar sales. Projecting current growth rates out five years, the industry will looks as follows:
1998 Wheelchair Market
1998 unit share
1998 $ share
Standard wheelchairs are going to lose unit share and are going to decline significantly in dollar share as well. The other three categories are going to increase in importance, so it is important for firms to capture a share of these markets. ight now, the power market is not served by Sunrise, so the company is essentially competing for what will be 38-39% of the total…… [Read More]
Market Entry and Exit Strategies and Decisions
Entering the market in a timely fashion is equally as important as exiting the market. Just as leaving the market, market entry can be planned. In any market, a business can make money by properly timing both the entry and exit. If one miscalculates any of these, then the business runs the risk of not getting the return on investment.
Entering a market sooner has the advantage of being a market pioneer (Bednarek, 2013). In contrast, late market entry can be advantageous since the products are cheap or improved unlike those already in the market. Already cluttered markets serve an opportunity for late arrival based on improved quality. For instance, a company may launch its product in German, Mexico, and Australia but at different times. The company may launch the product in one country at a time and will only enter the next…… [Read More]
Whole Foods Market
Which Organizational Diagnosis Model Is Best to Use at Whole Foods Market
Open Systems Theory
Weisbord's Six-Box Model
McKinsey 7S Framework
Likert System Analysis (1967)
Nadler-Tushman Congruence Model
Methods to use this Tool
Analyze each key element separately
ecognize the people that can help to get the work done and help in accomplishing the goals of the organization
Analyze how these Elements Interrelate in the Organization
Plan to Create and Maintain Congruence
Issues of Whole Foods Market
Poor Working Conditions
Failure to Support Farmworkers
Best Model to esolve Issues of Whole Food Markets
In this modern competitive era of rapid transformation and advancement, new organizations must be evolved and developed continuously. More effective learning processes need to be adopted and goal setting and planning processes must be learned and time should be spent to improve and advance the goal-setting…… [Read More]
Despite the diversification of its product and service offering, a source of failure has been constituted by the limited applicability of the Apple applications. In this order of ideas, the Apple software is only applicable on the Apple hardware, meaning as such that the freedom of the buyers is restricted. Another source of failure has been constituted by the low amounts of financial resources employed in marketing efforts. While number one competitor and industry leader Microsoft has placed promoted the organizational products and services on multiple media channels, Apple's approach has been limited. These disappointments are often attributed to the volatile and extremely challenging environment in which Apple operates, but its competitors also operate in this background, and their failures have been less obvious.
An important source of failure has been the departure of co-founder Steve Jobs for a ten-year period, during which the managerial style revealed numerous…… [Read More]
" The code also states when communicating investment information care must be taken to ensure that it is fair, accurate and complete as well as make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer.
Evidence indicates Lehman's senior financial executives knew of the Repo 105 transactions and certified the accuracy of Lehman's financial statements and disclosures despite having full knowledge that the company had engaged in the use of these transactions to hide their toxic assets and make their financial statements appear to be in good health when, in reality, they were not. These executives were fully aware that the financial statements were misleading and did not fairly present the true position of the company.
Hiding toxic assets and releasing favorable financial statements to investors each quarter clearly…… [Read More]
VF markets all of its diverse brands as eco-friendly, sporty, functional products that are useful for its outdoorsy customers. They are meant to leave a light carbon footprint yet also are helpful for consumers who wish to pursue more 'extreme' sports like hiking and trail running. Even its 'Lucy' brand of yoga sportswear is marketed in such a fashion. This fashion-friendly, yet functional marketing strategy seems ideally suited to the demographic likely to use VF clothing. VF consumers are young, but old enough to have established themselves enough financially to participate in pricey sports like skiing, snowboarding, and climbing. Because their sports are played outdoors and because of their age, relative affluence, and education, they are likely to care about the environment. VF fuses these two concerns. Its products are stylish, and suited to the needs of the sport because they are functional and durable. A good example…… [Read More]
Globalization and competition within the international markets demands that multinational corporations employ a series of strategies aimed at ensuring that they maintain a competitive advantage over their rivals. Such strategies can never be realized without first being aware of the external environment differences. An external environment analysis is therefore a key factor in the formulation of a successful internationalization strategy (Kennedy,1984).In this paper, we explore the concept of external environmental analysis and its role in the success of Starbucks as a multinational company.
The role of external environmental analysis in the strategic formulation of an internationalization strategy
The work of Babatunde and Adebesi (2012) noted that every organization that operates in a competitive business environment must employ strategic environmental scanning techniques in the evaluation of the external environmental forces (the opportunities and threats) in order to help the organization seize the opportunities and avoid threats and thereby gain profitability. Organizations,…… [Read More]
U.S. Bond Market
I agree with Standard & Poor's (S&P) downgrade of the U.S.'s credit rating. It was motivated by the fact that Congress and the Obama Administration had been unable to come up with a budget or fiscal plan that would stabilize the nation's medium-term debt dynamics. Furthermore, they cited serious problems with U.S. monetary and fiscal policy, which they felt left the United States very vulnerable in a time of high-volatility in the global financial markets (Paletta & Phillips, 2011). In other words, S&P was looking at the federal government's failure to come together and address the serious financial problems facing the nation and anticipating that this failure would lead to some type of gridlock. In hindsight, the nation has experienced exactly that type of predicted financial gridlock. The country is in significant debt and one party is opposed to raising taxes on those who can most afford…… [Read More]
" (ERisk.com Case Study Online) Many were affected by the collapse of HIH Insurance Company with stakeholders being the company employees, policyholders of the company, as well as the Australian taxpayer who will help shoulder this debt and finally those who are referred to as the "whistleblowers" or those that tipped off regulators that something was amiss.
There has been a strong campaign for protection for whistleblowers for both private and public sectors in Australia for the last ten years. Protection for whistleblowers serves public interest through exposure and elimination of waste, fraud and impropriety within a corporation or company. If those who would report such actions against a company were protected then collapses such as HIH's and other companies recently in the news might be altogether avoided or at the least minimized as to the impact, which they have.
Recommendations are for ethical and proper business dealings on the…… [Read More]
(Der Hovanesian, 2010)
Increased Promotion of Discounted mortgages.
The way that subprime lending practices, and some call predatory lending practices affect the housing market has yet to be realized on such a large scale, as these tactics have always been carefully controlled by lending institutions, due in large part to their historical long-range view. Subprime lending on the other hand is fundamentally not a long-term view practice; it is a short-term tactic that is now being dealt with on a massive scale as foreclosures mount and more and more families see foreclosure looming in their future and more and more banks take on this debt, with the added burden of holding on to mortgages that far exceed the new depleted value of homes as the market corrects naturally from the housing bubble. The marketing for such subprime lending was absolutely saturated as nearly every individual was admonished to buy a…… [Read More]
The decision of investing or not here then depends on the personal adversity to risk of each individual investor. The general theory states that each investor should construct a diversified portfolio, which adequately balances high risk-high gain shares with medium or even low rates of risk and gains (Hagin, 2004). New Zealand could then be assimilated with a medium risk-medium gain share, and as such would be perceived as a valuable addition to one's portfolio. In this order of ideas then, the recommendation would be that of investing in the country.
Amadeo, K., 2009, An Introduction to the Financial Markets, About, http://useconomy.about.com/od/themarkets/a/capital_markets.htm last accessed on December 17, 2009
Hagin, ., 2004, Investment Management: Portfolio Diversification, isk and Timing -- Fact and Fiction, John Wiley and Sons
Healy, J., 2001, New Zealand Capital Markets, Ministry of Economic Development, http://www.med.govt.nz/upload/18163/healy.pdf last accessed on December 17, 2009
Malkin, B., 2009, Financial Crisis:…… [Read More]
GM's Chevy Volt and its all-electric design, as well as diesel-electric and conventional gas-electric hybrids could and must replace the image of the 'old' GM in the public's imagination. The company has shed the Hummer stigma, now it must create a new image for itself in the future, not just domestically, but internationally.
Gas-free cars future priority. (2009, April 20). China Daily. Retrieved August 6, 2009
General Motors. (2009). Company history. Updated August 4, 2009. The New York Times.
Retrieved August 6, 2009.
Hu, Lei. (2008). GM's joint venture is China's top-selling brand in 2007. Edmunds.
Retrieved August 6, 2009.
Jason. (2004). The global hybrid race: Is Europe catching the fever. GreenHybrid. Retrieved August 6, 2009 at http://www.greenhybrid.com/wiki/index.php/The_Global_Hybrid_Race:_Is_Europe_Catching_The_Fever%3F
ald, Matthew. (200, August 5) $2 million in grants to speed up electric car manufacturing.
The New York Times. Retrieved August 6, 2009.
Ying, Tina &…… [Read More]
The franchising operations have expanded significantly during the recent years namely because of the benefits and reduced risks they offer to both parties. A positive example in this sense is given by international chain McDonald's, which franchised several of their stores to countries across the globe. The McDonald's example however also reveals that franchising is not always suitable, and it is far from being the universally agreed method of successfully penetrating the foreign markets. To better understand, before entering the ussian market, the officials at McDonalds clearly analyzed the market features and felt the need to handle the operations by themselves, rather than become a franchisor. As a result of increased attention to details, the American corporation now holds next to 80% of the ussian fast food industry. Other American-based fast food chains have attempted to enter the market, but they did this through franchising, and the economic background in…… [Read More]
Another unfortunate reality is that simply banning the discharge of effluents into the Olifants River will only stymie efforts to improve the economic situation of the region. New mining, agricultural, and electrical interests are being encouraged to invest in the region because they will facilitate economic growth and propel communities out of poverty. An outright ban on the discharge of effluents into the Olifants River will have the net result of undermining economic growth and crippling the communities that already rely on this economic base for their livelihood.
Many communities and governments, however, are experimented with market-based solutions to situations in which the interests of many firms, individuals, and organizations must be balanced with the larger desire to protect valuable environmental resources so that all can utilize them. The Australian government, in particular, has pioneered efforts to introduce market economic into pollution control and regulation. Their experiences with this method…… [Read More]
Open Market Operations
Monetary policy may involve several facets, including reserve requirements, discount rate and interest rate targeting. The U.S. Federal Reserve's long-time strategy has been to use interest rate targeting through Open Market Operations primarily to keep the economy in its attempts to keep the economy in a state of equilibrium.
Today, open market operations (purchase and sale of U.S. Treasury and other federal agency securities) are the principal tool used by the Federal Reserve in implementing monetary policy (Federal Reserve eb site). The Federal Open Market Committee (FOMC) of the Federal Reserve decides on the short-term objective, an objective that can be either a desired quantity of reserves of a desired price, also called the federal funds rate; this, in turn, will have the effect of making interest rates increase or decrease. "The federal funds rate is the interest rate at which depository institutions lend balances at the…… [Read More]
In my opinion, the disadvantages of PAM were a little too numerous and too consistent to justify its creation and capacity to operate and I think time would have conclusively shown this as well. The accuracy of the information on the market is sensitive to the subjectivity of the investors and it is difficult to make a positive evaluation on the effects PAM would have had.
1. Policy Analysis Market. On the Internet at http://en.wikipedia.org/wiki/Policy_Analysis_Market.Last retrieved on December 9, 2006
2. Hanson, Robin. The Informed Press Favored the Policy Analysis Market. August 2005. On the Internet at http://hanson.gmu.edu/PAMpress.pdf.Last retrieved on December 9, 2006
3. Khallow. The Policy Market Analysis. August 2003. On the Internet at http://www.kuro5hin.org/story/2003/8/13/33840/2554.Last retrieved on December 9, 2006
4. Pennock, David M. Commentary: The Good Side of the 'Terror Futures' Idea (Yes, There is One). 2004. On the Internet at http://dpennock.com/pam.html/.Last retrieved on December 11, 2006…… [Read More]
isk Analysis Financial Markets Main Techniques isk Analysis
isk analysis in the financial markets
This essay mainly intends to outline and explain the objective of risk analysis in the financial market and the main techniques used in risk analysis. In a bid to answer this question the study will first of all include a summation of the types of risks that are found in the financial markets. The financial market here has been classified into three groups that are; the stock market where company stock and shares are traded, the bond market where the Australian government usually sell its' treasury bills and bonds and lastly the international financial market.
Different risk analysis technique will spelt out in the two markets and then the objectives of risk analysis will then be mentioned before the essay concludes.
Types of risk in the financial markets
In his studies Jensen (2009) noted that there…… [Read More]
Adidas was formed in Herzogenaurach, a town in Mittelfranken, north of Nürnberg, not far from Erlangen, and remains headquartered there today. The company was founded by Adi and Rudolf Dassler. The brothers eventually had a falling out, with Rudolph founding Puma. Adidas has grown to become one of the leading designers and marketers of sports apparel, footballs, and other related items. The company operates globally, has revenues of nearly €20 billion, and profits of €0.72 billion in 2015 (Adidas 2015 Annual Report).
Adidas competes against Nike, Reebok, Puma, and several other brands in this space. Major product lines include footwear, apparel, and footballs. Adidas sponsors a lot of athletes and athletic clubs as part of its marketing. Ultimately, this industry is characterized by incremental changes to basic product designs, a strategic emphasis on marketing spending, and distribution, and companies that utilize a global strategy, selling the same way…… [Read More]
On the other hand there are many disadvantages to moving into foreign markets as well. One disadvantage is in regards to extra costs. Because it takes more time to develop extra markets, and the pay back periods are longer, the up-front costs for developing new promotional materials, allocating personnel to travel and other administrative costs associated to market the product can strain the meager financial resources of small size companies. Another disadvantage is product modification. When exporting, companies often need to modify their products in order to meet foreign country safety and security codes along with other import limitations. At a minimum, alteration is often necessary in order to satisfy the importing country's labeling or packaging necessities. A third disadvantage is that of financial risk. Collection of payments using techniques like open-account, prepayment, consignment, documentary collection and letter of credit are time-consuming and more complex (Advantages and Challenges of Exporting,…… [Read More]
Hansel & Krahnen (2007) conducted a study that noted the equity beta of banks engaged in the marketing of CDOs increased relative to banks that did not market CDOs. This again highlights the risk associated with CDOs, especially given that the impact on the firm's beta was more pronounced in smaller, less well-capitalized banks.
hile CDOs introduced more risk into the banking system, they also encourage more risk in the credit markets. CDOs accomplished this by providing a secondary market for credit assets. There was only a limited secondary market for low-grade corporate debt and for subprime mortgages prior to the rise of CDOs (Deng, Gabriel & Sanders, 2008). The increase in the amount of subprime loans granted in the U.S. correlates with an increase in the availability of a secondary market for such debt in the form of CDOs. In turn, this encourage the adding of more subprime debt…… [Read More]
McGurn suggests that even the highly complex modern economic markets and financial institutions reflect the values and morals of the community; collectively, they merely manifest the free will exercised by the individuals who control their operations and strategies. In that respect, McGurn reminds us that economic systems and institutions are inanimate and not capable of exercising either moral judgment or immoral exploitations. Rather, morality is a duty of individuals and of the human community to establish through appropriate social values. On the whole, McGurn argues that even the most disastrous economic catastrophes play a role in allowing corrective mechanisms to evolve internally; no interference from government is necessary.
Analysis and Criticism of the Religious Approach to Economic Market Regulation
In principle, the a priori assumption that religion is a beneficial perspective for human conduct and that of institutions is patently flawed. Secular moral theorists might argue (rightfully) that memorizing moral…… [Read More]
Davis enter the mass market with the Eggsercizer? Why or why not?
The three types of marketing strategies available to any company are mass marketing, niche marketing and skimming. The method that Davis at the moment is adapting is skimming. Why? He seems to rely on the trade shows and the occasional retailer who is interested in the product and skims the surface of the market potential. His product is a niche product that has applications in more than one sector. Thus the company has not been able to establish a niche yet. The aim of mass marketing is to capture a large segment of the market and retain it, either by a slow penetration process or by a rapid program where the market is captured by creating a mass awareness and demand. (Avlonitis; Papastathopoulou, 2006)
The methods of the rapid or the slow penetration requires many variables that build…… [Read More]
Even Fannie Mae and Freddie Mac should be made totally independent from the government. This should be followed up by other methods to increase the individual ownership of housing and at the same time reduce the costs of owning a house. Even if the housing sector cannot be made totally private, it is important that the government make statements saying that it has no intentions of supporting Fannie Mae and Freddie Mac any further, and at the same time, try to improve the operations of these two companies. This can be achieved by limiting the amount of debt that these regulatory deposit organizations can hold and also focusing clearly with the two institutions on the sections of the housing market where their activities would provide the best social benefits. (Fannie Mae, Freddie Mac, and Housing Finance: Why True Privatization Is Good Public Policy)
The weakness comes from the feeling that…… [Read More]
isks in Export Market
There is need for companies to develop a professional approach before venturing into the exporting business. The management of the company is supposed to be committed extremely as well as devoting time and money in commencing the campaigns of export. A company is supposed to be ready to face greater competition as well as more stringent rules and regulations concerning products and packaging due to the variance in rules to which or across which the company will be exporting.
In the process of exportation, there are a number of risks that the company will face. These elements of risks are encountered in every commercial transactions as well as the complexity of the environments that exporters operate in. The content of this paper will analyze risks that a company can face while entering the field of exporting as well as discussing the roles of intermediaries in the…… [Read More]
Future of the Housing Market
The housing crash that began in 2007 resulted in the worst economic catastrophe in the United States since the Great Depression of the 1930s, although few observers who realized that the bubble was about to burst truly understood the severity of the depression that would follow. In reality, it led not only to a collapse of the housing market but also to the failure of large banks, mortgage and insurance companies and very quickly to mass unemployment. The much touted service sector that was supposed to be the engine of the economy in the postindustrial age came to a grinding halt and had to be bailed out by the largest government expenditures since the Second World War. For a public that was accustomed to decades of rhetoric about the virtues of laissez faire and free markets, all this came as quite as shock, perhaps even…… [Read More]
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…… [Read More]
shadow banking system, its role in the subprime mortgage crisis, and failures of regulation within the shadow banking system. The term "shadow banking system" was coined by PIMCO's Paul McCulley in 2007 (Spanos, 2012) and refers to a banking system that includes financial intermediaries that are involved in creating credit across the global financial system, whose functions are not subject to regulatory oversight (Investopedia, 2012). The question has been debated as to whether shadow banking meets the definition of true banking. Given that the two systems perform similar functions, including credit intermediation and maturity transformation, the two should be considered parallel systems (Noeth and Sengupta, 2011).
The term shadow banking is used to describe any provision of credit taking place outside of the traditional deposit-funded lending system. This definition includes institutions that range from pawnbrokers and consumer finance companies to securities dealers as well as firms that issue corporate bonds.…… [Read More]
The first and perhaps the most obvious cause for business failure is fraud. Indeed, fraud is quintessential to business failure, mainly because it takes different forms and appearances, from intentional bad management to accounting frauds that lead to legal issues.
The most important example of how fraud brought down a bank that had been financing many important operations for the last three hundred of years is the arings ank. Unfortunately, arings was also a perfect example of how one single employee can actually bankrupt a company.
Indeed, Nick Leeson began his activities with arings after a short period spent with Morgan Stanley and he was soon sent to Singapore to clear the back office mess and futures trading that was on the way there. Initially operating only as general manager, Leeson soon began to trade on the Singapore Exchange (the SIMEX), especially in financial derivates, such as futures…… [Read More]
economic crisis in Europe and the increasing costs for European countries to borrow money and bail out other Euro countries in financial distress. The EU nations that use the Euro have experienced a crisis among certain countries with high debt requiring bailouts for Greece and Ireland and the likelihood that Portugal and Spain may also need a bailout. Postponing the restructuring of high interest debts has led to further crisis rather than resolving any of the problems faced by insolvent countries. Huge transfer payments from the more powerful Euro countries, like Germany, to the failed economies of Greece and Ireland have made investors nervous and led to less investment at a crucial time. The author suggests that the debts of troubled countries need to be restructured now in order to create a sustainable payment to increase confidence and secure future payments.
Creditors will also have to shoulder some of the…… [Read More]
Two nationally recognized computer manufacturers compete for market share of lap top sales. Company B. has 50% market share for lap tops within the United States, while Company A has 10% share. Company A plans to use competitive advertising in order to acquire more market share. Since the remaining 40% U.S. market share is dispersed among various companies with no clear path to substantial acquisition, Company A decides that Company B's market share represents a target for its streamlined acquisition of market share. Effectively, Company A's advertising team devises to pull market share directly from Company B. Negative advertising poised to make Company B. appear to have inferior products relative to Company A's lap top offerings threatens Company B's market share.
However, Company B. does have a collective, non-physical barrier in place to thwart the results of negative advertising imposed by Company A. A few aspects combine to…… [Read More]
Ethics and Leadership Failures: The Enron Case
Gibney's 2005 documentary film Enron: The Smartest Guys in the Room reveals some of the main ethical weaknesses in an unbridled neoliberal capitalist market system. Barely addressing environmental and social justice issues, the filmmakers instead choose to focus on organizational culture, leadership, and ethical decision making within the corporation. The film illustrates the core concepts of business ethics and shows how executives shape company values and behaviors. Disturbingly, the Enron case also shows how unethical corporate behavior is linked with unethical behavior in government.
Summarize in one paragraph how you would explain Enron's ethical meltdown
Enron's ethical meltdown is a result of two interrelated issues: unethical individuals making unethical decisions, and an organizational culture that enables unethical decisions to proliferate. The unethical decisions and behaviors mainly have to do with stock market manipulation and the falsifying of information related to the actual performance…… [Read More]