Earlier most of the goods were brought by customers as it was a sellers market. Promotion today is all about customer connect point through every possible media including social media. Pricing – Price is the base for all the companies. As we know finance is the life blood of any business and profit plays an important role in price mix. Earlier there was the concept of cost and profit.
Make or buy decisions help a construction company decide if it is better to produce a product in-house or buy a product from an outside supplier. There have some advantages of make a product in-house and buy a product from an outside source. According to Burt, Dobler, and Starling, as well as Joel Wisner, G. Keong Leong, and Keah-Choon Tan suggested that favor making a part in-house is save money based on the less expensive to make the part. If a construction company can lower its materials cost by making products in house, they will be had bigger potential to save their business money. A business should balance the savings on materials against the added payroll cost.
When there is inflation in a country, the general level of prices for goods and services rise. This turn of event consequently makes the purchasing power of currency to fall. This is where the government comes in and attempt to reduce the level of inflation, and obviously avoid deflation, so as to ensure that the economy is running smoothly (O 'Sullivan & Sheffrin, 2004). So, inflation affects organizations as well as individuals and in order to rectify the effect of inflation on the aggregate economy, the government comes in by introducing both fiscal policy and monetary policy. This is a typical example of a macroeconomic
Creates value: When a company uses a differentiation strategy that focuses on the cost value of the product versus other similar products on the market, it creates a real value among consumers and potential customers. A strategy that emphases the value highlights of cost savings or durability of a product in comparison to other
In general, if the product quality high means, the manufacturing cost is high. But the need is the company has to reduce the manufacturing cost without reducing the product quality. Practically it is not possible to reduce the manufacturing cost beyond certain level without compromising the quality. No improvement can be done in one objective function without affecting another objective function. i.e.
In the first chapter of this book, the introduction shows the approach to macroeconomics that we take in foreshadows the basic macroeconomic ideas and issues that we develop in later chapters. Macroeconomics is given a definition and thoroughly explained, and then primary interest to macroeconomist: economic growth and business cycles are further explained at how they apply in our everyday lives. In the second chapter of the book, measurement is introduced and the importance of calculating variables. The objective in this chapter is to discover how variables such as the measurement of GDP and its components are enforced, and the measurement of prices, savings, wealth, capital, and labor market variables. In this paper I will analyze all of
Because if the fixed costs set up are high then fewer production areas whereas if fixed cost is low, then firms can afford more production areas. Then, to achieve efficiency, a company should use minimum resources to create maximum outputs. For example, the fewer the factories location, the better for the company to produce at low cost with high quality and trained labor. In addition, the more flexible technology is, the better to produce different goods at the same assembly line. Furthermore, in Emirates Steel they use the latest hot rolling machines that can produce more than one item in mass
Microeconomics is a smaller window compared to macroeconomics; microeconomics focuses on things surrounding individual businesses and consumers whereas macroeconomics focuses on the bigger picture, or the whole aggregate. Microeconomics is the study of choices that individuals and businesses make, the way those choices interact in markets, and the influence of governments. Different studies within microeconomics include what to produce and how much to charge when it comes to an individual firm. When looking at a household microeconomics would be the study of what and how much of it to buy. Other areas of study for microeconomics would be poverty, income rate on jobs, consumption patterns, and distribution of output; overall microeconomics is
The economic system is done on two levels: microeconomics and macroeconomics. Microeconomics is the study of economics on a small scale, such as the individual behaviour in the economy markets (Davis, 2009). For example, microeconomics study will analyse how individuals respond to the incentives, the expenses of a firm or the household income. On the other hand, macroeconomics study of economics on a large scale usually the national economy (Investopedia, 2003). It analyse the national goals of the economy, such as maintaining full employment, stabilizing the economy or pursuing the economic growth.
The activists in this development denounce generally, multinational companies of having wild political power, budgetary markets. The financial limit gives the partnerships and the mechanical pioneers the ability to expand the pattern for their own particular advantage. Along these lines, their financial advantages will be of prime significance during the time spent globalization. Hostile to globalization activists propose more alluring headings instead of following the bearing of monetary globalization. Globalization has to a great extent affected the ecological factors as it has expanded the level of a worldwide temperature alteration, exhaustion in the ozone layer, the ascent in the ocean level and lessening in the water supply as it is subject to expanding measure of transportation, generation.