Business Explain: November 2019

Archive for November 2019

Briefly explain which of the four organizational structures is appropriate for each of the MNE strategic choices.

International division this is typically used when firms first expand abroad, often engaging in a home replication strategy. Geographic area structure organizes the MNE according to different geographic area so the localization strategy would be appropriate.

Global product division structure this structure supports the global standardization strategy by assigning global responsibilities to each product division.

Global matrix lightens the disadvantages associated with both geographic area and global product divisions structures which is why this structure supports the goals of the transnational strategy.

What are the two primary means to set up a WOS?

One way to set up a WOS is to establish greenfield operations. This means to build new factories and offices from scratch. The other way to establish a WOS is an acquisition. The advantage of this is it adds no new capacity and results in faster entry speed.

How does the carnage of the highway support a service industry?

Mediccal, police, administrative, legal, insurance, automotive repair, and funeral - stand equipped to handle the direct and indirect consequences of accident injuries.
Traffic accidents create economic demands for these services running into the billions

What are the two primary means to set up a WOS?

What was one of the most important effects of the commercialization of public space during postwar era? (Government ownership)

The struggle to define what kind of political behavior was permissible in the new, privately owned public place

How did the shopping mall change the American culture?

Suburban populations increasingly looked to the mall for a new kind of community life - consumption-oriented, tightly controlled, and aimed at citizen consumers who preferably were white and middle class

How did the National Housing Act and the Federal Highway Act improve urban cities?

Made it possible for cities to use urban renewal grants for rehabilitation of commercial areas; the federal government pledged from 2/3 to 3/4 of the cost of acquiring land and demolishing structures

How did the government intervene in the Paramus Sunday shop case?

Answer: Supreme court held that lsuch laws did not voilate freedom of religion under the 1st amendment and left it to individual states and localities to regulate Sunday selling

Why was it that Suburban shopping dropped after the advent of shopping centers?

Answer: Convenience - The ability to drive and park easily, more night hours, improved store layouts, increased self-selection, and simplified credit like the charge plate

How did the regional shopping center aim at satisfying suburbanites consumption and community needs? (Car culture)

- Strategic locations near highway intersections or along the busiest thoroughfares
- The drive was incredibly short
- Abundant parking for cars

Why did people move to the suburbs after WWII

- Highways made travels from the suburbs easier
- At the end of WWII people sought to minimize chances of extermination by living away from center cities and spending their working hos exposed to the downtown danger zone
- New housing developments
- Central shopping centers placed near suburbs

What does Strauss say about consumerism?

Answer: " Our ability to consume is endless. The consumer consumes regardless of their possessions. The luxuries of today are the necessities of tomorrow".

What does Jack Strauss say about recession?

Answer: "When the country has a recession, it suffers not so much from problems of production as from problems of consumption. Our ability to consume is endless".

What is the economic circle according to Time magazine?

Answer: Gov, Civ, Bus pending creates more production, production creates wealth, wealth creates more spending

Why did the war promote massive economic expansion through the American consumer?

Answer: They spent as if there were no tomorrow

What is the purpose of the Federal Reserve? What are its goals?

The purpose of the Fed is to use monetary policy supply and influence and influence interest rates. The Fed has three major goals:

1. Price Stability
2. Sustainable Economic Growth
3. Full Employment

The Fed seeks to stabilize prices by regulating the money supply and interest rates. In turn, stable prices promote economic growth and full employment.

What is the Federal Reserve?

The federal reserve was established in 1913 and is the central banking system to which most large banks belong. The Fed divides the country into twelve districts, each with a member-owned Federal Reserve Bank. The twelve banks are coordinated by a board of governors.

What is the entry-level salary for an economist with a bachelor's degree? With a master's degree?

The median annual wage for economists was $99,180 in May 2015. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10% earned less than $52,540.

What is the current job outlook for economists?

In the next 10 years, the job outlook for economists is expected to grow by about 6% (there will be around 1000 more economist jobs available). This isn't exceptionally high or low but holds steady with most jobs today.

What educational background and training is needed for these jobs?

Most economists need a Master's Degree or a PhD. Although your degree doesn't have to pertain solely to economics, it does help later on to find a career. One of the main necessities is to have plenty experience and skill in mathematics.

What kinds of jobs do government economists perform? What about those who work in private industry? In education?

Federal government economist collect and analyze data about the U.S. economy, including employment, prices, productivity, and wages among other types of data. They also project spending needs and inform policymakers on the economic impact of laws and regulations.

Economists working for corporations help them understand how the economy will affect their business. Specifically, economists may analyze issues such as consumer demand and sales to help ad company maximize it its profits.
Economists working in education teach and conduct research to use in the classroom.

What issues interest economists?

Economists are interested in the economic well being of individuals as well as the economies around the worlds. Things that interest economist include market trends, financial securities, data tracking and the overall economic conditions from local economies to world economies

SWOT definition; How can it affect a company?

S- Strengths W- Weaknesses O- Opportunities T- Threats / By a company sitting down, looking at their strengths and weaknesses, they can use their strengths to eliminate / avoid threats. By them doing that, they can also look at new opportunities they may have.

Describe the steps in the managerial decision making process.

1. Identify the problem - difference between what is is / what you want 2. Generate - most important, open to ideas / brainstorming 3. Select - satisfied - solutions that are only adequate not ideal 4. Implement - unforeseen consequences, give alternatives for problem

What are the two component parts of TQM?

1. Commit a goal 2. Coordinate effort / Has lower operational costs, higher return on sales and investments, and makes up for expense.

Describe a Democratic Leader.

A democratic leader would be task-oriented, someone who doesn't care about your opinion, has little concern for employees, and is feared.

What's the difference between a Mission Statement and a Strategic Plan?

A mission statement is a statement of the basic purpose that makes an organization different from others. A strategic plan is a broad guide, to achieve long term goals set by the board of directors and top management.

Explain what is a credit? When should we use a credit? What are things you should look for when you are getting a credit card? What actions can a person take when facing credit problems?

Answer: A credit is the privilege of using someone else's money for a period of time.

What is a budget? What are the main purposes of a budget?

Answer: A budget allows you to meet your personal goals with a system of saving and wise spending. The main purposes of a budget is to live within your income. It will help you make wise buying decisions. It will prevent credit problems. It will also allow you to develop money management skills.

Under what circumstances might someone use a trust?

Trust are for people who inherit money may need people to manage it if you're elderly.

Define money management.

Money management is the day to day financial activities associated with using limited income to satisfy your unlimited needs and wants

What is the difference between a national brand and a store brand? What are the advantages of each?

Answer: National brand is all over the country uniformed quality and a store brand is sold in particular store which is less expensive.

List and explain the 3 Cs of credit

1.Charge a purchase at any time only put part of debt must be paid each month
2.credit limit may be outed at one time
3. Finance charge

What responsibilities do consumers have in business relationships? What is the most important responsibility consumers have?

Answer: Honest, involved, reasonable, active, informed

What responsibilities do consumers have in business relationships and what is the most important?

Answer: Be honest, be reasonable, be active, be informed, and be involved. The most important responsibility as a consumer is to be informed.

Describe how the consumer movement came about.

Answer: Businesses used to take advantage of customers and false claims were made about products. Prices were often too high and products were unsafe. So the consumer movement came about to fight these unfair things.

What is the difference between a national brand and a store brand? And what are the advantages of each one?

National brands are advertised all over the country (advantages: recognize uniform quality aka well known).

Store brands are the stores own brand name. (advantage: lower cost).

Describe the kinds of consumer information you might find on a product label.

Answer: A label reports nature or content of a product, tells what product is made of, size, how to care for it and when/where it was made. Clothing labels must tell you what the product is made of and must give instructions fro washing or cleaning.

Discuss how you should evaluate "where to put your savings".

Answer: You should evaluate where to put your savings by considering safety, return, liquidity, and taxes. Safety is assurance that the money you have invested will be returned to you. Return is the percentage of money that you will get back on your savings or investments over a year. Liquidity is the ease with which an investment can be changed into cash without losing its value. Taxes reduce your rate of return.

Discuss 3 of the types of financial services that are offered by financial institutions.

Saving services- is safe storage of funds for future use which they accept money from customers for safekeeping.

Payment service- the ability to transfer money to others when necessary for daily business activities.

Lending services- offered when people, businesses, and governments need to borrow money.

Discuss a budget? Main purposes of a budget?

Answer: A summary of planned expenses for a given period along with the estimated income for that period. The purpose of a budget is to keep track of your money, what you're spending it on and how to not overspend.

Discuss "credit history" and how its used by lenders?

Answer: Credit history is the borrower's history of how responsible they were with their credit. It's used by lenders so they can check to see how reliable this person is, and if it's worth lending to them if they will get their money back or not.

Discuss the advantages of using credit and the problems that can occur if credit is not used properly?

Answer: Credit can help if you need money for emergencies, such as unemployment, illness, death, or property loss. If credit is not used properly, it can cause one to go into debt and be spending all your money without even realizing it.