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What is globalization? How have global connections changed in the past 50 years? Please identify and explain two specific examples of ways in which globalization has impacted environmental, health, core-periphery disparity, or security issues.

Globalization is a constantly moving process when countries, cultures, and people integrate. Global connections have significantly changed throughout the years under many circumstances. Due to the development of technology, global connections have become tighter, and countries started to interact with each other by exchanging goods and services. Globalization has also...

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Assume that it is now early 2007. Look at the post 2002 financial statements in the table below. There are reasons within (‘internal’) and outside (‘external’) to the McDonald’s organisation’s control as to why there has been changes. Describe 5 reasons, with at least two internal and two external reasons, as to why you think there were changes.

A substantial improvement in McDonald’s financial situation was noticed after the 2003 downfall. For example, there was a twofold increase in the net income as the percentage of sales from 2003 to 2006. Moreover, sales and net income per restaurant in 2006 rose to almost $700,000 and $112,000, respectively, compared...

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Adventure Travel is a large Australian travel company that specialises in domestic and international adventure holidays. The company’s target audience is 18-40 year olds who seek fun and adventure from their holiday experience. An ‘adventure holiday’ is a type of organised holiday in which people do new and exciting things. Prepare a summary report for the Marketing Manager which includes both a SWOT and a PESTLE analysis.

SWOT and PESTLE analyses will help Adventure Travel evaluate its position in the current business environment. SWOT Strengths: unique offer on the market; Weaknesses: the lack of an established segment of the market; Opportunities: engaging a younger, more active audience in a new, unexplored sphere; Threats: legal complications of the...

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Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings.

The capital, the weighted average cost, is the least rate of return required from the person in need gets from the operation they ought to do. Suppose the initial earning is smaller than the WACC. In that case, it is advisable not to get yourself into the investment because the...

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What if you were able to replicate these fundraising efforts at your organization, however, your board contribution was only 55%. How would you do to drive your board members to contribute at 100% within one year?

The board contribution is one of the central aspects in the work of nonprofit organizations as it impacts their budget and the ability to perform their main functions. Under these conditions, it is vital to select effective strategies aimed at cooperating with volunteers and potential sponsors. Thus, to attain 100%...

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Write on your feelings in relation to The Ford Pinto Case.

The design flaw of the famous Ford Pinto compact – even a slight blow to the rear of the body, could displace the filler neck of the gas tank-caused several tragic accidents at once. The problem was compounded by the fact that Ford knew about the potential issue even before...

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Forecast future financial results as to how would you do this using what you learnt in the subject? Provide at least 3 ways. Describe how accurate do you think that your forecasts would be? Describe why you have answered as you have.

McDonald’s financial and accounting problems seem to decline over time, returning the company to the top in terms of total revenue. According to Raj and Singh, this company became successful due to attaining “customer satisfaction through fast service, quality food, a clean environment, and affordable prices together with a good...

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Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. The economy of a hypothetical country has been stable for two or three years with deficient unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments, to increase in value. People feel very good about the future and use their newfound wealth to buy things that they had been hesitant to purchase in the past. How will the use of the fiscal policy tools stabilize the economy?

Using the two fiscal policy tools will stabilize the economy by reducing inflation rates. The government will realize fewer budget deficits, and the national debts will reduce. Therefore, the country will become self-sufficient economically and be able to finance its financial needs without unnecessary constraints involving taking debts and having...

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Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. The economy of a hypothetical country has been stable for two or three years with deficient unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments, to increase in value. People feel very good about the future and use their newfound wealth to buy things that they had been hesitant to purchase in the past. What would be the likely impact on the government budget and national debt of the use of the fiscal policy tools?

If the government engages in tax increase tools to address the nation’s economic issues, the government budget will have lesser deficits as the collected taxes will be used to finance the budget. Nevertheless, the national debt will drop substantially as the government will not need to borrow to finance the...

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As of January 2020, what is Gusto 54’s competitive advantage? If COVID-19 had never happened, would you have believed that the group would be able to maintain this advantage? Whyor why not?

Gusto 54 Restaurant Group is characterized by a clear vision, mission, and strong family values that highlight and appreciate its employees as the primary asset. As a result, Gusto 54’s organizational culture and proactive approach to service have facilitated the company’s success throughout its history. As of January 2020, the...

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What role does values, attitudes, and diversity play at Gusto 54? Do you consider the values, attitudes, and diversity to be a strength or weakness at Gusto 54?

Values, attitudes, and diversity play a vital role at Gusto 54 as they constitute one of the company’s strengths. The implementation of the family values in the group’s culture resulted in improved performance and remarkable success. The main idea was to promote a friendly treatment of all team members as...

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Do you agree or disagree with the steps that Gusto 54 took to build its “people-first” culture? Why or why not? What are the key challenges facing Gusto 54 in January 2020?

“People-first” culture can be defined as a corporate philosophy prioritizing people and their happiness. This principle applies to all stakeholders involved and aims to keep the business successful. As reported by Hougaard, “when people feel valued and cared for, theydo their work with stronger intrinsic motivation, a deeper sense of...

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If COVID-19 had never happened, which challenge would have been Gusto 54’s largest barrier to continued growth? How would you suggest the group tackle this challenge?

If COVID-19 had never happened, there could still be barriers to Gusto 54’s continued growth. In particular, high operating costs and poor earnings growth would be a significant challenge for the company. As per Birbrager and Konrad, “60 per cent of new restaurants failed within their first three years, and...

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Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. The economy of a hypothetical country has been stable for two or three years with deficient unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments, to increase in value. People feel very good about the future and use their newfound wealth to buy things that they had been hesitant to purchase in the past. What kind of economic gap will start to occur (inflationary or recessionary)?

An inflationary market gap will start to occur in the country. An inflationary market gap occurs when the real GDP exceeds its potential GDP. The hypothetical country is experiencing an increasing stock price, and the value of investments and the benefits are increasing substantially. The rising stock prices and investment...

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Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. The economy of a hypothetical country has been stable for two or three years with deficient unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments, to increase in value. People feel very good about the future and use their newfound wealth to buy things that they had been hesitant to purchase in the past. What kind of fiscal policy might be helpful to stabilize the economy (expansionary or contractionary)?

The government can address the inflationary economic gap in the hypothetical country by using a contractionary fiscal policy. The country’s government can use several contractionary budgetary policies to address the upcoming situation. The first alternative is transferring payment reduction so that the citizens’ earnings reduce and their demands drop. The...

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Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. The economy of a hypothetical country has been stable for two or three years with deficient unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments, to increase in value. People feel very good about the future and use their newfound wealth to buy things that they had been hesitant to purchase in the past. What specific fiscal policy tools does the government have available, and how should these tools be utilized to maximize their effect in stabilizing the economy?

The first tool for use by the hypothetical country’s government in stabilizing the economy is increasing taxes. Increased taxes ensure that a lesser amount is left to the citizens to purchase real goods and services. Consequently, the amount circulating in the economy is substantially reduced, hence reducing inflation. The second...

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Briefly explain the four types of Canada Customs warehouses.

There are four types of Canada Customs warehouses such as bonded warehouse D7-4-4, sufferance warehouse D4-1-4, queens warehouse D4-1-5, and highway frontier warehouse D4-1-7. The latter is CBSA operated, requires secondary examination, and needs authorization. Queens warehouses stores unclaimed, abandoned, detained, and seized goods. Sufferance warehouse operated by private entities...

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What are the advantages and disadvantages of outsourcing to Low-Cost Countries (LCCS)? How can the risks of outsourcing be mitigated?

With the advancement of the globalization of the economy, many companies are engaged in outsourcing their production, tech support, and other functions to low-cost countries. The advantages of such a decision are fairly obvious: low-cost countries are often in a developing stage and can offer services similar in quality to...

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Reflect on the BP oil spill as it relates to the global supply chain. Examine the use of current transportation economic situations such as the 2010 BP oil spill in the Gulf of Mexico.

The BP oil spill of 2010 that occurred in the Gulf of Mexico had a major influence on the global supply chain. It affected over 1.6 million square kilometres and impacted the ecology and economy of the area. Some of the direct effects on the supply chain were immediate –...

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How important is the division of labor to a capitalist economy?

The labor division plays a critical role in a capitalist economy by making the working process more efficient. The term division of labor, mentioned first by Adam Smith in his book “A Wealth of Nations” in 1776, applies to distributing tasks based on a specific part of the process. The...

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How does the division of labor lead to more efficient production?

Several factors explain the reasons why production becomes more efficient during the division of labor. Wolf stated that the division of labor separates tasks and simplifies them to further processes. The worker concentrated on a specific task and performed it quicker. Moreover, the efficiency of production elevates with the level...

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The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results in retaliatory actions from the other countries against the hypothetical country’s products and services. This causes a great loss of business in the hypothetical country and results in significant unemployment. What kind of economic gap will start to occur (inflationary or recessionary)?

The economic gap that exists in the hypothetical country is recessionary. It occurs when the country has a lower real GDP than its potential GDP. The described country is experiencing lower output than its potential as individual income has substantially reduced due to increased unemployment rates. The government is also...

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The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results in retaliatory actions from the other countries against the hypothetical country’s products and services. This causes a great loss of business in the hypothetical country and results in significant unemployment. What kind of fiscal policy might be helpful to stabilize the economy (expansionary or contractionary)?

An expansionary fiscal policy would help stabilize the country’s economy. The government has an insufficient amount of money circulating in its economy. An expansionary fiscal policy will facilitate an increase in the amount of money circulating in the economy, addressing the scarcity of funds experienced in the hypothetical country’s economy,...

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The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results in retaliatory actions from the other countries against the hypothetical country’s products and services. This causes a great loss of business in the hypothetical country and results in significant unemployment. What specific fiscal policy tools does the government have available, and how should these tools be utilized to maximize their effect in stabilizing the economy?

The first fiscal policy tool that can be used in facilitating economic stability in the country is tax reduction. Tax reduction will leave the citizens with more money to spend on purchasing the available products in the market, thereby increasing demand and creating a consequent increase in product value. The...

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The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results in retaliatory actions from the other countries against the hypothetical country’s products and services. This causes a great loss of business in the hypothetical country and results in significant unemployment. What would be the likely impact on the government budget and national debt of the use of the fiscal policy tools?

Engaging the expansionary fiscal policy tools to address the country’s economy’s instability will result in higher budget deficits and an increase in its national debt. If the country reduces the tax rates, the government income will be substantially reduced as tax is among the significant income sources for a government....

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The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results in retaliatory actions from the other countries against the hypothetical country’s products and services. This causes a great loss of business in the hypothetical country and results in significant unemployment. How will the use of the fiscal policy tools stabilize the economy?

They are increasing government spending and cutting taxes; each increases the amount of money circulating in the economy. The demand for various products and services will increase as people have a lot that they are willing to spend to acquire the products. The value of the items will consequently grow,...

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Assume that in a hypothetical country, coal mining is a significant industry, hiring a high proportion of that country’s workforce. Describe how a significant decline in coal mining, as the country attempts to switch to environmentally safer production, can ripple through the entire economy and how the government can use fiscal policy tools to combat such adverse effects.

Considering that coal mining is the source of income for most people in the country, its economy is dependent on money from coal mining. An abrupt drop in coal mining will result in high unemployment rates, leading to a significant decrease in cash circulating in its economy. The demand for...

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Assume that it is now early February 2003. Provide strategic advice to the new CEO and Board of McDonald’s by answering the following question: List three vital accounting and finance problems facing McDonald’s.

McDonald’s, one of the most prominent fast-food restaurants worldwide, faced significant accounting and financial problems in 2003. The first issue was that the company’s net income per restaurant dropped during that period, the first considerable loss since its foundation. Secondly, former CEO of McDonald’s Jack Greenberg’s attempts to introduce cooking...

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Provide at least three recommendations as to what McDonald’s should do now to address the issues providing an outline as how this will be implemented.

Resolving the issues that appeared in 2003 could be challenging but not impossible. The first recommendation for McDonald’s, in this case, is to apply the 4P model to improve sales. Specifically, the company needs to reassure that all employees are well-trained for their duties. Furthermore, the restaurant may introduce healthy...

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You have identified an opportunity, thought about your beach head market, and even designed your first product. You need to make some money now. What are some considerations you would think about?

In order to start making a profit, an individual should first consider the existing conditions in the market to determine the value aspect of the business. To engage in value creation and estimate the maximum price the consumer is willing to pay for the product, the business should consider what...

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What are some costs you would be thinking about?

Depending on the nature of the products, the costs could include the production costs, packaging, shipping services, and costs for legal purposes of business functioning, such as product certification. Depending on the method for reaching the customers, the business costs could include the marketing budget, employee salary, rent for office...

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What is the most ingenious business model you have ever come across? Why?

The most ingenious business model I have ever come across is an e-commerce clothing-focused brand Revolve. The company presents an interesting take on the modern synthesis of internet and e-commerce technologies and design. The site collects the customers’ search and preference data on designs, cuts, and length of clothing pieces...

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What are the main components of a SWOT analysis and a PEST analysis? What are the main differences between the two types of analyses?

SWOT analysis is a well-established tool that introduces a simple yet reliable framework for organizational analysis. Its name represents the four key components of this framework: Strengths, Weaknesses, Opportunities, and Threats. Thus, the S and W elements reflect the internal properties of the organization, whereas O and T refer to...

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Describe briefly the organization, its purpose and its business.

Apple Inc. is a technological giant company situated in the US. The company markets, manufactures and designs accessories and wearables, tablets, personal computers, smartphones, and various related services. Apple Inc.’s products include home accessories, wearables, iPad, Mac, and iPhones. Apple Inc.’s mission is “to bring the best user experience to...

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What form of organizational structure has Apple adopted? Explain 2 advantages and 2 disadvantages of this structure for Apple.

Apple Inc.’s organizational structure is hierarchical, with the CEO, Tim Cook, helped by vice presidents in various sectors. The CEO is the main decision-maker of the company, and therefore this person is responsible for making direct decisions. Unfortunately, the organizational structure of Apple Inc. has a functional matrix that is...

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Give an example of a structured problem in Apple’s workplace.

One of the problems in Apple Inc.’s workforce is the customers’ complaints about products and services. Some customers require more advanced features, like better cameras and colors or longer battery life. Others complain about the Apple services, like in-built GPS navigators, robot assistants, or customer chatbots services. Multiple technological companies...

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What kind of decision-making style do you think would be least appropriate for the situation Apple was in? Give reasons for your answer.

The least appropriate decision-making style for Apple’s situation would be the directive style, which employs decisive and quick thinking and does not tolerate ambiguous or unclear ideas. The direct decision-making style is unsuitable because it Eliminates collaboration Reduces employees’ initiative. The direct decision-making style could be highly applicable to solving...

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Ought businesses care about their environmental impact?

A huge number of industries pollute the environment, releasing waste into rivers and carbon dioxide into the atmosphere. Clothing production is one of the most harmful to the environment because a large number of resources are used, and the scale of this activity is enormous. If corporations ignore the fact...

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In today’s chaotic environment, financial planning does not make any sense. All a plan does is show you what is not going to happen. Please comment.

It is difficult to disagree with the claim about the futility of financial planning in modern chaotic times because planning might deprive a business of flexibility that is highly demanded in such an unstable environment. Besides, a plan might occur to be inaccurate because of the unpredictability of numerous factors...

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Discuss the implications of the use of schedules of qualities as bidding and contract documents from the point of view of the, owner, contractor and the designer.

Effective planning is generally recognized as an essential tool for project implementation. The schedule allows for estimating and allocating the necessary time and funds and thus avoids excessive revenues and complies with the project plan. In particular, schedules of qualities are helpful in two critical areas – communication and coordination....

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Why has Wal-Mart been so much more successful than its competitors?

None of the competing companies was able to invest such funds in expansion. The key to the success of Wal-Mart worldwide was the strategy of aggressive expansion combined with low prices. However, a significant role was also played by the distinct specialization of trading enterprises in four areas: cheap goods...

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What market segment does Wal-Mart’s business model attract?

It is worth noting that the primary buyers of this chain of stores are ordinary people. The average Walmart customer earns less than the average US national earnings. Walmart’s overall customer base can be divided into six main groups. Therefore, African-Americans, the wealthy, parents who raised children and now live...

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What is Wal-Mart’s competitive advantage?

The success of Wal-Mart is primarily due to the company’s pricing policy. First, the principle of “every day low prices” is declared. For the buyer, this means the opportunity to purchase cheap goods daily, not only at periodic sales. The second important element of the pricing philosophy is the so-called...

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What mistakes did Wal-Mart make profiling their Chinese customers?

One of the main mistakes of Wal-Mart in the analysis of Chinese buyers was an incorrect assessment of their behavior. The fact is that the Chinese go shopping quite often, but it is a kind of walk. They move around the stores comparing prices. Moreover, the volume of purchases themselves...

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If you were the manager in charge of Wal-Mart’s international expansion into China, how would you handle this situation? Please provide a plan of action.

Understand the Chinese market and make appropriate adjustments. The successful experience of Europe and the United States is not quite suitable for the Chinese market. It is necessary to carefully study the consumer habits of consumers in the central consumption regions in China. Wal-Mart needs to find an entry point...

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Based on your analysis, what would you advise Wal-Mart’s Board of Directors to do? Should Wal-Mart remain in China, or should they opt to withdraw from the market?

Despite all the difficulties, the Chinese market of goods and services is relatively fast-growing and promising. Nevertheless, it should be fully understood that it is very different from the American one. Today, the Chinese market of goods and services is moving online. This can be noted by the success that...

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What is meant by the term “analytics”? Can you define it in your own words?

The term analytics refers to the analysis of a certain amount of information. These days, a considerable bulk of data is available, and people can benefit from analyzing this amount of information. The more bits of data can be analyzed, the more detailed answers to the set of questions can...

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Does your company compete on analytics? Why or why not?

One of the companies I worked for competed in analytics, which contributed to its business success. McDonald’s is one of the companies that use the elements of analytical competition as a way to remain competitive. The company operates in different markets, so they need to know its customers and the...

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Give me a good, unique definition and example for both Nash Equilibrium and Prisoner’s Dilemma. Why does the elasticity of demand affect a firm’s optimal price? Is the prisoner’s dilemma always a Nash equilibrium? Is Nash equilibrium always a prisoner’s dilemma? How would you characterize the Nash equilibrium of a prisoner’s dilemma?

The Nash equilibrium is the stable game state in which players do not gain an advantage by altering their strategies if their rivals also keep their strategies intact. For example, there are two companies, X and Y. Each of them can choose to have high or low prices. If both...

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What is the relationship between total surplus and economic efficiency?

Total or social surplus is a sum of consumer and producer surpluses. Economic efficiency is when resources are optimally allocated to minimize waste and bring benefits from scarce resources. When social surplus increases at equilibrium quantity and price, the same situation is observed at any quantity, which demonstrates economic efficiency....

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Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. Cars are becoming more fuel-efficient and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway.

Cars are becoming more fuel-efficient and therefore get more miles to the gallon. As soon as people get access to fuel-efficient cars, they need less need for gasoline. Drivers would want to use an opportunity to save their money for gasoline and start paying attention to the offered cars. As...

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Describe and give an example of the Mission Statement and Moment of Truth.

Mission Statement – is a statement made by an individual or organization which formally summarizes its values and goals. An example of the mission statement of a company operating in the healthcare industry could be “to promote health and well-being in communities through innovation, technology, and superb quality of service.”...

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In the introduction to his book, Sedlacek uses the Czech legend of St. Prokop as a metaphor for a commonly-held concept of the “invisible hand”. He suggests that, like St. Prokop, civilization harnesses the evil of greed to accomplish “good” economic results. Based on what you have read here, does this argument make sense?

This argument makes sense. The invisible hand is an economics-related concept that refers to the ability to produce economic (or social) goods through a person who works for themselves and produces those goods in such a way that those goods are unintentionally available to society because the other does not.

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With so many means of communicating today, communication still represents a great challenge for many organizations. Why do you think this is so?

An increase in means of communication increases its overall complexity. In order to reach a wider audience, organizations must be present in all media and platforms, which means that each of them requires proper management. In addition, misinformation is becoming more prevalent since a wide range of communication tools benefits...

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Explain the concept of weighted interest-sensitive gap. How can this concept aid management in measuring a financial institution’s real interest-sensitive gap risk exposure?

The Weighted interest-sensitive gap is centered on the concept that not all rates of interest adjust at the same speed since some interest rates are more sensitive than others. For instance, interest rates on the bank assets can adjust more slowly than the rates of interest on liabilities, and both...

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How do you measure the dollar interest-sensitive gap? The relative interest-sensitive gap? What is the interest sensitivity ratio?

The dollar interest-sensitive gap can be determined by taking the interest-sensitive assets (replicable) and less interest-sensitive (replicable) liabilities over a determined planning time. Typical planning times comprise one year, six months, and three months. Further, the relative interest-sensitive gap is calculated as the dollar interest-sensitive gap divided by total assets...

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What is the purpose of an interest-rate swap? What are the principal advantages and disadvantages of interest-rate swaps? How can financial-service providers make use of interest-rate caps, floors, and collars to generate revenue and help manage interest rate risk?

The purpose of interest rate swaps typically entails a fixed interest rate exchange for the floating rate or vice versa with the aim of increasing or reducing exposure to variations in the interest rates or attaining a marginally lower rate of interest than could have been without the interest rate...

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How do you interpret the quotes for financial futures in The Wall Street Journal?

Futures quote information when searching for futures price quotes. A majority of the sources may offer many basic pieces of information. The quotes for financial futures in The Wall Street Journal explain the interest-rate futures contracts recently traded on selected American exchanges that are the trade made and priced on...

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What is a long hedge in financial futures? A short hedge?

A long hedge is there to offsets risk by purchasing financial futures contracts prior to the time new deposits are projected to flow in, and interest rates are projected to decrease. It assists the financial institution in hedging against the opportunity risk if the securities are to be added to...

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How can financial futures help financial service firms deal with interest rate risk? If market interest rates were expected to fall, what type of option would a financial institution’s manager be likely to employ?

Financial futures permit banks and other financial institutions to address the risk of interest rates by minimizing risk exposure from unanticipated price alterations. The future financial markets are fashioned to move the interest rate risk fluctuations from risk-averse investors to speculators ready to accept and probably benefit from such interest...

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You are the owner of a furniture factory. You normally produce 100 pieces of furniture a day because that is how much you can produce given the amount of qualified workers in your town and the amount of reasonably priced wood that you can purchase locally. Then one day you get an order from a large national retail chain who wants to purchase 200 pieces of furniture a day from you. You are hesitant, as you will have to pay higher wages to get some qualified workers to move to your town. You also will need to pay higher prices for wood because you will no longer be able to rely solely on local suppliers and will have to spend more on shipping wood from other towns. But you drive a hard bargain and the retail chain agrees to pay one and a half times your normal price. Does this situation describe a change in quantity supplied? A shift in the supply curve? Both? Neither? Explain your answer.

The situation, in this case, describes a change in the quantity supplied. According to Taylor, a change in the supply curve occurs only when the change in supply is driven by factors other than the price. Since no other factors other than the price change, the situation demonstrates a change...

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What characteristics made Vic Ahmed a successful entrepreneur? How did their Ahmed and Steven Case’s partnership and shared vision of “Rise of the Rest” serve their business goals? Is focusing on smaller cities rather than areas like silicon valley a good strategy, why?

Considering the number of different startups in which Vic Ahmed was involved, he is distinguished by such qualities as creativity and courage. The activities of his startup for startups, Innovation Pavilion, also demonstrate that the entrepreneur understands the importance of training, support, continuous development, expansion, and partnerships. Steve Case also...

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Review the video How to Prepare an Income Statement (Step by Step).

This video presents the steps to creating an income statement using the excel sheet. There are several procedures conducted in the process using the available information. The first stage is to identify all the assets, liabilities, revenues, capital resources, and operating expenses. This step will enable one to organize the...

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Review the video Tutor2u Channel Trailer.

This short video is a promo film highlighting an online tutor channel on YouTube to help learners revise and pass their exams. The key subjects taught on this platform include economics, politics, sociology, geography, business, and psychology. The author provides short informative content on what services they offer and how...

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Discuss the use of fiscal policy by the government to stimulate demand in the retail sector. In answering this question, please ensure that you explain what fiscal policy is and provide a variety of examples of its use to stimulate demand in the retail sector.

Fiscal policy is an economic framework used by federal governments to control their spending and taxation, thus influencing the economy. By the government acting to adjust the spending and tax revenue, it can impact the economic results by either lowering or raising the economic activity. For instance, when a federal...

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Analyse whether fiscal policy can provide a flexible response to changing economic conditions, referring to the retail sector where appropriate.

Difficult economic times call for challenging decisions that can affect retailer business in a country. For instance, during an economic recession with increased unemployment rates, central banks may boost the economy by inducing an expansionary money policy to expand the money supply, raise loans, and reduction in interest rates. However,...

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Give brief general advice regarding whether fiscal policy is as effective at stimulating the economy as monetary policy, referring to the retail sector specifically where appropriate.

There is a controversy over which type of policy to apply during an economic recession or inflation is challenging to both liberal and conservative minds. From a retailer’s perspective, based on the monetary policy, a small increase in inflation is often related to boosting the economy because it inspires investments...

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Suppose you own a pet shop. Your sales are decent but a marketing consultant tells you that you could increase your sales and be able to charge a higher price if you spend some money on local television ads. If the consultant is right, will advertising lead to an increase in quantity demanded? Or a shift in the demand curve? Both? Neither? Explain your answer.

The situation describes a shift in the demand curve and a change in the quantity demanded. According to Stengel, a shift in the demand curve occurs when factors other than price cause a change in demand. In the described situation, the marketing consultant offers to increase investment in advertising, which...

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Suppose you own a television factory and at your current level of output you have average total cost of $800 per television, average variable costs of $700 per television, and a marginal cost of $400. If the price your buyers are willing to pay is $500, should you decrease or increase production? Explain your reasoning, and make sure to cite at least one of the required readings in your answer.

In general, there is no doubt that any enterprise, over time, seeks to increase its production capacity. This expansion can be realized through the spread of a network of influence, an increase in the product line, or the development of vertical integration: in either case, such development is followed by...

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Suppose marijuana has just been legalized in your state. Nobody in your home town wants to start a marijuana business, as this would be too much of a stigma. But being an MBA student, you know a good business opportunity when you see one and decide to take a stab. Shortly after starting up your business, you gain a loyal following of customers and start raking in some steep profits. However, the local government decides that they want a cut of your profits and starts charging a 20% sales tax on marijuana. Do you think this would lead to a 20% or greater loss in sales? Do you think marijuana in this situation would be facing inelastic or elastic demand? Explain your reasoning.

I believe that the introduction of a 20 % sales tax on marijuana will lead to a drop in sales, which is lower than 20%. In other words, I believe that demand for marijuana is inelastic, as the coefficient of change in demand will be between 0 and -1. When...

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Critically discuss the strategy adopted by Caterpillar. Explain how this strategy helps a company in improving firm competitive position vis-à-vis the five forces and the potential pitfalls for this strategy. Support your answer with examples.

When it comes to Caterpillar Corporation, there are two main elements of its strategy. The first one is investments in technology, which produces great benefits. Essentially, the company can now promise its customers the most innovative machinery, tractors, and other products, which helps to differentiate it from a myriad of...

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Identify and discuss reasons the CEO, CFO, and Audit Committee Chair should issue a sustainability report.

Sustainability reports are vital in shaping the performance of an organization. Therefore, the CEO, CFO, and the Audit Committee Chair should issue a sustainability report to boost workers’ morale, enhance credibility, enhance the market image and identify business opportunities. Each of the mentioned leadership ranks needs to understand the position...

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What information should the sustainability report contain? Provide specific recommendations.

Sustainability reports provide a mechanism for evaluating the achievement of human resource utility goals. Therefore, it should aim at fostering and tackling ecological and climate challenges. Concurrently, TBL should provide clear reports with crucial information about its objectives and path toward sustainable development. Such information should include financial records, corporate...

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Capitalism, socialism, and communism differ in who owns and controls the means of production and economic resources in these economic systems.

Smith was convinced that the law of supply and demand was the natural mechanism for regulating capitalism. According to this law, people create demand by wanting a particular product. Manufacturers create supply in response to this demand by producing the desired goods. The reason why manufacturers produce goods is that...

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What influence did Smith’s economic ideas have?

Smith’s ideas became popular in the US, Great Britain, and Western Europe. People in these countries began establishing different enterprises and inventing novel devices and technologies. As a result, the spread of Smith’s ideas led to the Industrial Revolution, and nowadays, different countries use some of his ideas in their...

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What struggle did Marx believe existed in the world (between which groups)?

Marx believed that there was always a struggle between the rich and the poor in the world. At different times, this struggle was between slaveholders and slaves, aristocrats and peasants. In the industrial age, it was between the wealthy social class, called the bourgeoisie, and the poor working class referred...

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What did Marx believe would eventually happen to the world?

Marx thought that, in the end, the working class would rebel against the bourgeoisie, and the workers’ revolution would end the bourgeoisie’s existence. As a result, there would be only one social class, and all citizens would be equal. In this new world, no oppression would take place, and even...

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The world now a days surviving under serious situation which is impact business different sectors, and the consequences going to lead damages of the structures of many organizations. In light of the current situation, show how most of the business organizations can benefit of Porter’s Five Forces & SWOT analysis to avoid the consequences of the pandemic.

Given the current situation relating to COVID-19, most business organizations can profit from using Porter’s five forces and SWOT analysis in order to prevent the pandemic’s impact on their activities. Concerning Porter’s five forces framework, firstly, the analysis of the threat of substitutes that might be cheaper is of great...

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Differentiate between Debt and Equity funding options for Corporates. Briefly explain the various primary market equity funding mechanisms available to Corporates today. Draw a detailed graph highlighting the historic relationship between the risk and return of five securities across the two main asset classes over time.

Difference Between Debt and Equity Funding Options Equity funding involves retailing a share of a company’s equity in exchange for capital. For instance, the owner of XYZ Company might decide to give up 15% of the company’s ownership and sell it to an investor to raise capital for its expansion....

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Gary Yang, the finance manager of Monopoly Ltd recognises the important role accountants have in demonstrating professional and ethical behaviour towards wider stakeholders. In order to improve the working culture within his department, Gary wishes to organise ongoing Continuing Professional Development (CPD) sessions for all accountants on professional body code of ethics and conduct. Gary’s proposal has been met with resistance from his line manager, David Saunders, who feels the CPD sessions will be costly for the Company and will not contribute towards improving working practices. After a long debate on the usefulness of the CPD sessions, David has decided he will authorise the expenses to facilitate the sessions if Gary can provide additional details. Prepare a report for the attention of David Saunders highlighting the five fundamental ethical principles accountants at Monopoly Ltd would be expected to abide by.

The monopoly has recognized that accountants are a key part of organizational success. In accounting, various key ethical principles are important in guiding the professional process. The first ethical principle is respecting the views of the stakeholders. The program is set to instill professional ethics, but on the other hand,...

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Gary Yang, the finance manager of Monopoly Ltd recognises the important role accountants have in demonstrating professional and ethical behaviour towards wider stakeholders. In order to improve the working culture within his department, Gary wishes to organise ongoing Continuing Professional Development (CPD) sessions for all accountants on professional body code of ethics and conduct. Gary’s proposal has been met with resistance from his line manager, David Saunders, who feels the CPD sessions will be costly for the Company and will not contribute towards improving working practices. After a long debate on the usefulness of the CPD sessions, David has decided he will authorise the expenses to facilitate the sessions if Gary can provide additional details. Prepare a report for the attention of David Saunders highlighting how adherence to a code of ethics can assist Monopoly Plc and wider stakeholders.

Accounting is a profession that is concerned with ethics, which are so crucial in determining the organization’s success. Code of ethics will assist Monopoly PLC in avoiding unnecessary penalties that govern the International Accounting Reporting Framework Standards. This is a body that guides reporting, and if there is any transaction...

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Decision-making process is not only important for managers, but also helps other business professionals solve problems by examining alternative choices and deciding on the best route to take. Using a step-by-step approach is an efficient way to make thoughtful, informed decisions that have a positive impact on your organization’s short- and long-term goals. Explain the importance of decision making for managers at each of the three primary organization levels along with the associated decision characteristics. Using the current situation (COVID-19) as your example, elaborate on the change which could happen in decision-making.

The Importance of Decision Making for Managers With regard to the top-level management, the importance of decision-making at this level is crucial as they set the organization’s goals, control policies, and are responsible for selecting the most qualified managers to implement strategies. The middle-level management, which also belongs to the...

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You have been approached by a friend who is considering that once travel restrictions are lifted, they want to travel the world to write a food blog; an idea inspired by watching too many food TV programmes and YouTube clips during Covid-19 lock-down. They have come to you as they heard that one of your university papers covered Gig Work and the Digital Economy. Discuss, why they should do this and why it is an exciting career choice (Advantages of Gig work)? What they should be aware of as potential issues (Disadvantages of Gig work)? What specialised skills, knowledge and personal traits should they have?

The idea of traveling and writing a food blog is an exciting choice due to the wide range of benefits that activities in this industry have. Gig work allows realizing one’s potential to the desired extent and does not require responsibility to employers since opportunities for self-employment today are wide....

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Suppose you own a television factory and at your current level of output you have average total cost of $800 per television, average variable costs of $700 per television, and a marginal cost of $400. If the price your buyers are willing to pay is $500, should you decrease or increase production? Explain your reasoning, and make sure to cite at least one of the required readings in your answer.

The television company should increase the production output in order to lower the average total cost. According to Taylor, the average total cost is found by dividing the total cost by the number of produced units. Marginal cost is the cost of producing one additional unit. Since the marginal cost...

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You are the owner of a restaurant, and currently you have only one waiter. While this keeps costs down, many of your customers go home because they are tired of waiting in line or waiting for their order. You hire four more waiters and waitresses, and you are now able to serve a dramatically higher number of customers. Seeing the huge productivity gains from hiring more staff, you then hire 20 more waiters and waitresses. However, you are not able to serve any more customers than you were able to when your staff size was only four. In fact, your restaurant has become overly crowded because there is not enough room in your restaurant for all of your staff. You are confused as to why hiring four more staff members increased your productivity, but hiring 20 more did not. What concept from the background readings best describes what happened in this case? Explain your reasoning.

The situation demonstrates the law of diminishing marginal returns. According to Clifford and Hill, as a business adds variable resources to a set number of fixed resources, the additional output generated from every additional unit of a variable resource will decrease. In this situation, the variable resource is workers, and...

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How do you think planning in today’s organizations compares to planning in an organization 25 years ago? Do you think planning becomes more important or less important in a world where everything quickly changes and crises are a regular part of organizational life? Why?

Strategic planning 25 years ago differs significantly from the process today. First of all, this is due to the accumulation of knowledge in the field of business and management, which allows the development of new mechanisms. However, the most important factor, in this case, is the speed with which the...

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Is changing the organization’s domain a feasible strategy for coping with a threatening environment? Can you think of an organization in the recent news that has changed its domain? Explain.

The organizational domain defines the environment within which the company operates, as well as its products, services, and market. Thus, this concept consists of all environmental factors with which the organization interacts in order to achieve its goal. The domain in which the company operates cannot be fixed; it is...

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