It is seen that sometime high level of options offered to customer may confuse him instead of increasing his satisfaction; it may also lead to a production of the product which was in actual not desired by the customer . Since large number of quantity may leads to customer confusion, it is thus very much needed that sales process should me made so much easy and understandable that it don’t let customer to design something that is not appropriate or it should not let the customer to get confuse from the variety offered. Though, it is observed that high number of varieties offered for the customization makes the customer dealing process more complex, as the number of offered options for customization increase the “build up” process for customer becomes more complicated as the choice to get the best one becomes more difficult for the customer. This analysis makes the dealership process more prominent, it is thus important that sales process should be modified according to the needs of customization; it should be made as simpler as possible. So, mass customization puts lot of responsibility on dealer to simplify things.
In other words, increasing fluctuations in inventory in response to shifts in customer demand as one moves further up the supply chain. It also means that variability of demand increases when it moves up the supply chain away from the customer’s order. Therefore, small changes in orders causes large oscillations in supply chain parts. There can be several reasons such as lack of communication between supply chain partners, price fluctuations, order batching and updating demand forecast at each stage. In our game, lack of communication between supply chain parts and unknown customers’ demand are the main reasons of fluctuations in the effective inventory level.
For instance, the price adjustment mechanism may be slowed down because printing new menus and price catalogs is costly for firms. Assuming the velocity of circulation is constant, the inability of prices to adjust necessarily leads to an increase in
Motivational techniques: The most suitable motivation methods for our management style are Fredrick Herzberg’s Two Factors Theory and Skinner’s Reinforcement Theory. Herzberg’s Theory is connected with famous Maslow’s Hierarchy of Human Needs and declares that motivational factors can be divided into two separate categories. The first category is called “Motivators” and this is factors make employees work more effectively and increase their productivity. This aspects help to develop competitive environment which is needed for the healthy growth of the employees. This challenges their skills but also keeps an interest in the job, so they value more their position in the company.
The Impact of Political Instability on International Trade: The rise in the level of political risk decreases international trade flows. Oh & Reuveny (2009) claims that as political risk rises due to uncertainty, bilateral trade may decline because of the fear of the traders from the government changes to policies. As the government may issue some decisions for prohibiting trade in some goods and limiting trade in other goods. Moreover, violent conflicts that stemmed from political risk may harm trade, as it may cause damage of goods, delay in the distribution, and destroy also transportation infrastructure. These damages in return mean higher costs to traders, due to higher insurance premiums, in addition to costs beard as a result of longer trade routes or may be as a result of the need of increasing personnel to guard shipments.
By correctly compensating employees and offering further pay incentives such as bonuses or paid time off, the company will suffer less from employee turnover, which will benefit their success in the long run. CNBC guest columnist Ron Volper summarizes how paying employees’ salary and incentives will positively impact an organization, “The companies with the highest employee morale and productivity pay a mix of salary and incentives. The salary compensates employees for performing all the tasks required of them and provides them with a consistent income.” This high moral and positive attitude for compensation will positively result in retaining good employees for the long run of their
• Bargaining power of buyers:- A situation where the customers can join and stop themselves from buying the product if they feel the price is high. This would affect the sales of the company and beyond a point the company will reduce the price and accept customer’s terms and conditions. If buyers have high bargaining power, then it would become a problem for the company. • Rivalry among existing firms:-
In general, organizations engaging in international finance activities can experience much greater uncertainty in their revenues. An unsteady and unpredictable stream of revenue can make it hard to operate a business effectively. Despite these negative exposures, international business can open up opportunities for reduced resource costs and larger lucrative markets. There are also ways in which a company can overcome some of these risk exposures.
• The implementation of the preferential policy must be taken serious. Buyers must be trained and acquire skills in the preferential procurement area. • Firms must be very strict and keep to their payment policies because when SMEs are not paid on time this reflects very badly to the SMEs reputation and they are likely to lose their customers or shutdown. • Most SMES take up loans to start up and stay afloat. When the purchasing function does not pay on time they are likely to incur interest on their loans, be listed as bad payer and going forward will not be able to borrow from banks because of a bad reputation of not paying.
This translates to the business having a financial loss. Impact on the business: Plays the biggest role on the business Price sensitivity – in some instances buyers may be happy to pay more for a product or service if it is delivered, has a guarantee or is conveniently available etc. Strategy: Mr Price will have to do extensive market research to insure maximum sales PESTLE Analysis A PESTLE Analysis is a tool used by companies to scan the macro environment. It gives the business a broad view of the external environment where they do not have any control or influence. It is important for the business to know what is happening in this environment so that they can adapt to any changes.