Given the fact that global resources are becoming rare and expensive, should nations and firms prefer imitation to innovation? Yes, firms should imitate other successful organization until they are strong enough to innovate a new product. It is cheaper and easier for a startup firm to limit the risk of failing. Here are some of the reasons from Forbes magazine: Avoid initial major R&D cost by Imitating. Learn from competitors and early adopters.
Among the success factors is IKEA executed a cost effective approach concerning its business strategy. Through minimizing expenses and removing waste such as shipping, IKEA could put lower pricing details than competitors who have the same features. Moreover, IKEA developed a one of a kind product strategy. Considering consumer developments, they placed product priorities by placing a price by using a common matric which is a lot lower than the competitors. Furthermore, they motivated the designers and suppliers to be more competitive so that they can decrease the expenses and get a wider range of designs to select from.
Child labor is something people in the United States might think of as awful, but for families in countries like China it is a way of life. Name brand companies, for example Nike, have their products made overseas often using children to do the work. The use of child labor in other countries for Nike brings up the debate on whether or not the United States should buy products that have been produced by children. The United States should not buy products manufactured with the use of child labor because of the unfair wages they get paid and bad working conditions. Some may argue that by putting children to work it is lowering the unemployment rates in countries, the morals of buying products produced by young teenagers is just flat out wrong.
Economy is partially related to efficiency as it also focuses on minimizing the cost of input of an organization. Economy is measured by looking at the cost of the resources an organization consumed and the value of the output they deliver. Tesco Seri Tanjung Pinang should know that economy is important for them as it can help them gain competitive advantage by offering their products with a lower price compared to other stores by lowering their costs. Since Tesco Seri Tanjung Pinang has an objective of offering at the most possible lowest price of their product to their customer, this element has become more important for them to implement because they want to minimize the input and maximize their output. Lastly, the effectiveness refers as to achieve goals by successfully delivering what they intended to.
The red line is the demand curve that represents the interest and how firm decides to hire worker. At point W1, we can deduce that the wage is very low which one of the condition for a firm or corporation to be considered as a sweatshop is actually how competitive market works. The salary may seem to be lower compare to point W and point W2. However, the actual effect or the actual benefit is that it increases the amount of jobs as shown at point Q1. People would like to reduce sweatshop with the objective to banish it, but people also contradict their action at the same time.
SME´s in the 21st century: A general overview on SME´s current situation in global trade including the challenges they are facing and what are the opportunities for corporations and international organizations. It is important to understand where SME´s stand, in a generic context, in order to come up with feasible solutions at the end. It´should be taken into account that even though all SME´s are not the same, they do share some similarities and in some cases “the common trait (of these similarities) gets to the very core of what brings their success”. 2. Global entities and SME´s: We will use one global corporation, Allianz, and one global organization, ICC World Chambers Federation, to explain the efforts and challenges that they have faced that exist toward integrating SME´s in global trade.
8.Easy price comparison forces companies to set their prices competitively which is a positive point for customers. 9.Stable prices in the market helps customers plan and stabilize their expenditure, which in turn may lead to stabilization of trade cycle. Disadvantages of Oligopoly 1.Setting of prices may be advantageous for the firms, but if done unrealistically, it may prove to be a great disadvantage for consumers. 2.Creative ideas or plans of small businesses in the oligopolistic market fail to realize because they cannot overcome the control of major market players. Their realization is only possible when one of the major player adopts it for use.
Globalization and me: What impact of culture to personal context? GLOBALIZATION Generally, globalization can be defined as interdepending between nation countries through the cross-border transaction in variety areas such as culture, services, economic and political. It similar with the definition by John J. Wild & Kenneth L. Wild (2014) stated the globalization is the trend toward greater economic, cultural, political and technological interdependence among national institutions and economies. According to Orunmoluyi (2002) it is a process of creating a global market in which increasingly all nations are forced to participate.
Naturally, as demand dissipates, prices also decrease—thus the law of supply and demand. It is important for entrepreneurs to note that the laws of supply and demand work best in competitive markets. When businesses are competing with one another, they try to attract consumers by lowering prices, improving quality, and developing new products and services (Mariotti, 2000, p. 69) Government regulations, or anything else that keeps entrepreneurs from entering a market, will make the market less competitive. Less competition leads to higher prices, poorer quality, and fewer new products and services (Mariotti, 2000, p.
The prevalence of outsourcing has become “an essential part of business activities in the era of globalization” (Thangavelu & Chongvilaivan, 2013, p. 27). While on the one hand, outsourcing not only saves time and money but also creates opportunities of accessing new resources and exchange technological innovation, on the other hand, it decentralizes more and more business processes and disbands domestic jobs. The heated debate over ethical challenges, particularly over labor legislations, pulls public focus away from the extensive opportunities outsourcing provides. Nonetheless, when weighing the key advantages against the disadvantages (excluding the extent and impact of the ethical debates) it is evident that companies gain from outsourcing in the short-term as well as in the long-term. The planning process of outsourcing itself should involve project risk management (Deering, 2014, p. 17), which would overall allow a company for receiving the highest possible profit of