Business Explain: Business

Showing posts with label Business. Show all posts

Describe three factors that complicate the process of an international business.

a distinction must be made between cash flows to the project and cash flows to the parent company
Political and economic risks, including foreign exchange risk, can significantly change the value of a foreign investment
The connection between cash flows to the parent and the source of financing must be recognized

Differentiate between multipoint pricing and experience curve pricing strategies.

Multipoint pricing-a firm's pricing strategy in one market may have an impact on a rival's pricing strategy in another market.

Experience curve pricing-price low worldwide in an attempt to build global sales volume as rapidly as possible, even if this means taking large losses initially.

What are the three factors that contribute to the trend toward greater retail concentration in developed countries? How have these factors promoted retail concentration?

The three factors that contribute are the increases in car ownership, the number of households with refrigerators and freezers, and the number of two-income households. All these factors have changed shopping habits and facilitated the growth of large retail establishments sited away from traditional shopping areas .

What is the most common approach to expatriate pay? Explain what comprises this form of compensation. What is the advantage of this approach?

The most common approach to the expatriate pay is the balance sheet approach. It equalizes purchasing power across countries and adds a financial incentive to take the position. A comprise is the taxation where they would have to pay both the home and host country governments. Expatriates will receive a service premium for working outside his or her country of origin.

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Large firms will take a proactive approach but many medium sized and small firms like to stay reactive because of their size. They don't consider exporting until their domestic market is saturated and the emergence of excess productive capacity at home forces them to look for growth opportunities.

What are the different ethical problems of employees?

1. Overly aggressive financial or business objectives
2. Abusive and intimidating behavior
3. Conflict of interest
4. Fairness and honesty
5. Communications
6. Business relationships

What six barriers should organizations research prior to conducting business outside its own country?

Overly aggressive financial or business objectives,
abusive and intimidating behavior,
conflict of interest,
fairness and honesty,
communication, and
business relationships.

What are the arguments against Social Responsibility?

Sidetracks managers from the primary goal of business. Participation give businesses greater power, perhaps at the expense of particular segments of society. People question whether business has expertise needed to assess and make decisions about social problems. People believe that social problems are the responsibility of gov agencies and officials, who can be held accountable by voters.

What are the arguments for Social Responsibility?

Businesses helped create many of the social problems that exist today, so they should help fix them. They have the financial and technical resources to help solve problems. As members of society, businesses should do their fair share to help others. It's necessary to ensure economical survival.

What does the internal analysis (strengths and weaknesses) center on?

Company, customers, and competition.
Company analysis involves questions about the staff, financial situation, production capability, and the marketing mix.
Customer analysis includes who they are, how groups of customers differ, buying patterns, etc.
Competition analysis involves comparing the company and other companies through several methods, like looking at market share.

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