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SAF criteria Nintendo can decide to pursue a pricing, quality, or innovative strategy to enhance its competitive advantage. Figure 1: pricing strategy Pricing Strategy Suitability Pricing strategy will address the key opportunities and constraints Nintendo faces. A lower price can be achieved by utilizing less expensive components, and the end...
The strategic planning process often goes through several stages that aim to facilitate the achievement of an organization’s objectives. The typical planning process often includes the analysis of the external and internal environments, definition of the business and the mission, setting the goals, formulation of strategies, and developing procedures for...
The video gaming industry is dominated by Sony, Microsoft, and Nintendo. The three firms are fiercely competing to outdo each other. Their strategies mainly revolve around innovation, pricing, and adoption of the latest technologies. Nintendo has been the market leader for a long time but was outdone with the entry...
SWOT Analysis Strengths Nintendo has various strengths that enable it to command a considerable market share in the video gaming industry. First, Nintendo’s video game devices and games are innovative and simple to use and are therefore attractive to the targeted market. Secondly, the company has a variety of video...
First, the company should adopt technologies that are less costly so as not to follow in Sony’s footsteps of producing each gaming device at an estimated $ 805 and selling it between $499 and $599. Secondly, the company should adopt technologies that will ensure that its products stand out just...
1) Many business models were invented in 2004 to attract customers. Owner-operated clubs were based on single-location operations, although small regional chains were created. Franchised clubs operated under the brand umbrella. There were also design companies and health spa that provided support to the health club industry. Thee models were...
Bally has been considered as the leading health club generating significant revenues. In the 1990s, Bally faced challenges because of weak performance, and, as a result, Bally’s stock price was decreased by 2003. In 2004, CEO Toback launched a new campaign on supplying fitness products for specialized shops. The company...
Health clubs charged a fee for joining and for a monthly subscription. The industry received about $ 800 per member annually, but this index varied significantly in the country. The club members usually had to subscribe for a minimum of one year. 66 % of members renewed the subscription. Clubs...
Foreign direct investment (FDI) is a direct investment in a host country by an international firm. It is the investment of foreign assets into the host country’s business or companies, but not in its stock markets. FDI is a durable and long-term investment that can stay irrespective of the prevailing...
There is the ‘headquarter effect’ when a foreign firm acquires a local firm. For instance, an international firm may decide to shut down critical aspects of the local firm due to centralization. This strategy could reduce the number of high-skill jobs and chances of growth in the host country. Moreover,...
General Electric Company is a mega-company that seeks to expand its business and gain a larger share of the market. The issues of global warming due to the emission of carbon dioxide threaten the company’s lucrative business of selling steam engines that use coal and petroleum products because environmentalists advised...
There is no secret that, at present, several issues within the work of Quality Assistance could use some improvement. While a number of issues have been admittedly fixed over the past few years, some major concerns remain unresolved. One of these issues concerns the communication process between the QA and...
On December 2, 1984, deadly gas leaked from the plant in Bhopal, India, which was regulated by the Union Carbide Corporation. More than three thousand people were killed because of the disaster. During the first days after the disaster, the Union Carbide Corporation refused to take moral and financial responsibility...
During the 1960s-1970s, the new wave of the U.S. environmental movement contributed to enacting the series of strong environmental laws. The changes in the environmental legislation realized by the Congress of the United States were directly affected by the development of the environmental movement, which was closely associated with such...
When small companies start to expand, the issue of logistics becomes as topical as it has never been before. The routes that once seemed perfect suddenly become useless and new methods of transportation have to be chosen. However, by far, the most complicated logistics issue concerns the choice of intermodal...
Fluctuations in demand are inevitable when dealing with any kind of product, since, no matter how essential the given product could be. There will always be competitors, oversaturation of the market with the given product, or any other issue that will finally lead to demand rates swinging from high to...
Though personal computers were first made by Apple Company, IBM Company mainstreamed the market in 1980. Later on, in the early 1990s, Wintel Company was dominating the industry. Expanding the capabilities of computers and cheap prices were the main factors mainstreaming the growth of personal computers. By the beginning of...
On 1st April 1976, Steve Jobs and Steve Wozniak, together with other college dropouts in the USA, founded Apple Computers, and after several months, they had produced 200 units. This made them take on a new partner, Markkula, Jr., who was known to be an experienced businessman and used to...
Individuals who are mature enough are well endowed with unique cognitive capacities according to the moral point of view. Values, emotions, and aspirations of each individual vary across the board. This point of view identifies the uniqueness of each individual. On the other hand, sympathy has been associated with the...
Information on any moral misconduct within an organization can be released by either an active or a past employee to point out the ills being perpetrated. In the event of whistleblowing, there must be an incident taking place against the interests of the public. Duska argues that loyalty is not...
The employment contract is defined by several factors. For instance, an employee has the freedom to quit employment. Besides, an employer can dismiss an employee from work. The wishes of an employer are also fulfilled by an employee according to the directions stipulated at the workplace. Common law is the...
Labor and capital are costly requirements for a firm like Chrysler Corporation. To expand its product portfolio, the automobile company demands an additional capital. Besides, any slight change in technology in manufacturing its vehicles requires surplus investment. On the same note, hiring both professional and semi-skilled staff who can turn...
a) In the short run (next few months), what measures should the restaurant take to maximize its profits? Explain. The French restaurant enjoys monopolistic competition. In order to maximize its profitability in the short run, the management of the restaurant should apply an effective and practical economic model. As a...
Question a: Mergers in business management are critical in generating enough resources for an organization to operate effectively while providing a platform for a harmonized management approach. In the banking sector, the option of merging is usually a major capital budgeting undertaking. It largely saves costs and improves economic gains....
Over the years, e-commerce is a core factor in determining the levels of growth of small and growing businesses. However, the growth and development of a business such as a grocery shop may suffer major setbacks related to the small size of operations, reduced economies of scale, and transaction problems....
Price maximization entails determining both the price and output levels to gain maximum gains. Several approaches can be used to maximize profits. First, the latter can be attained by increasing the prices of goods and services. It is important to evaluate and note the difference between marginal revenue and marginal...
(a) Frequent-flier and frequent-stay programs: Frequent-fliers are incentive programs used by airlines to reward clients who have continuously been loyal travelers. The strategy aims to reduce travel costs to persuade travelers to become lifetime clients. Frequent-stay is a program that offers free stay in hotels for travelers who use hotel...
Rewards can be defined as things that motivate employees to work harder. Rewards and recognition are some of the ways that can be used to motivate employees into achieving the objectives of an organization. There are many types of rewards and most of them are associated with direct costs. However,...
Allstate insurance company is one of the companies in the world that are enjoying the benefits of having set diversity management as one of its strategic goals. One of the competitive advantages of this approach is better customer care, which leads to increased sales revenue. Since 1996, Allstate has been...
The main objective at Allstate is to bring together the differences in the workforce to achieve its mission and boost business success. In doing this, it has developed four major steps in setting its goals. These are succession programming, development, measuring steps, and accountability, and reward. Goal setting is a...
Nestle is a company that was established with the main goal of producing food products. The company has made several changes to enhance sustainability in the turbulent market. The first change was experienced when the company started to expand internationally. Several outlets were opened in foreign countries. This strategy was...
An incremental approach involves making small changes with time. The ultimate goal is to achieve significant changes by making small steps. An incremental approach in organizational change requires management to make small changes to ensure that all stakeholders get adapted to the new structures. The changes made by Brabeck-Letmathe were...
The first lesson from the case study of Nestle Company is that; divesting in the activities of a company is healthy because it improves profitability. As such, an organization can invest in profitable organizations only. The company closes or sells business units, which are not profitable. This helps reduce the...
The rise in the unemployment rate in the United States after the economic recession of 2007-2009 was severe and unprecedented. During this period, the unemployment rate rose from a low of 4.4% in 2007 to 10% in late 2009, which is higher than an average increase of 5.6% experienced in...
1) The multilateral real exchange rates are calculated based on many currencies. The multilateral exchange rates help to determine the dynamics and performance of a country’s currency relative to major world currencies. In calculating multilateral exchange rates, one takes some world currencies, assigns them relative weights, and then computes the...
1) The sacrifice ratio refers to the cost of outputs that result from a reduction of the inflation rate by one percentage point over a given period. One way of reducing inflation is through stringent monetary policies that lower the inflation rate by one percent over a given period. The...
In essence, Spykes was not a bad product. Although it was an alcoholic product, it also doubled up as an energy drink that was caffeinated and was packed in different flavors like spicy lime, spicy mango, hot melons, and hot chocolates. Moreover, it was only 12 percent alcohol in content...
It would be a blanket accusation if say that all alcohol manufacturing companies fail in their ethical duty to be informative and be faithful in advertising. However, it would be an overstatement to say that alcohol companies satisfy this requirement. Because of the price wars that are evident in the...
Some beer, wine, and spirits ads can be misleading because they create a false impression of the brand they try to advertise. The law requires that only those who have attained the age of 21 years should drink alcohol. However, this is not true as alcohol continues to be abused...
There is a need for restrictions in alcohol advertisement so that the vulnerable youth that seem to be the target of the alcoholic beverage manufacturers can be salvaged from underage drinking that risks interfering with their health and career life. The agencies that are charged with monitoring the contents of...
1) The equation W/P = f (u, z) is a wage-setting (WS) equation. An equilibrium in the labor market is attained when the WS relation is equal to the price-setting (PS) equation. The WS is the employees’ bargaining place while the PS is the company’s position. The wages (W) are...
An open economy is open to foreign trade of goods and services. An open economy means that there is a high demand for a country’s products abroad (exports) and a decrease in domestic demand for its products because of the imports. Thus, spending in an open economy is given by:...
The IS-LM framework can be used to assess the effect of exogenous factors on variables such as output and interest rates. A fall in autonomous investment may be caused by a loss in business or investor confidence. Based on the IS-LM model, lo or Co will decrease causing the IS...
In the IS curve, interest rates are represented as a function of Gross Domestic Product (GDP). The initials I.S., in full, means the investment and saving equilibrium. It represents the locus points of all equilibriums; a point where total spending is equal to the total output of the economy (GDP...
The LM curve is derived from the money market equilibrium. It shows the range of values of interest rates, i, which when combined with the outputs, Y, give an equilibrium money market. The interest rate, i, can be interpreted as the opportunity cost of money i.e., payment for liquidity preference....
Different organizations apply diverse benefit objectives to measure the success of any commerce initiative. Most business organizations apply customer acquisition and value capture methods. Additionally, “client loyalty and retention” measures have also been applied. Customer acquisition may be monitored in many ways. These include new clients obtained, the proportion of...
There are several challenges associated with the processing “Card not present” credit card transactions. Duplicate transactions are one of the potential difficulties experienced by these groups of merchants. The situation is very detrimental because it may lead to a massive loss of capital. Internet fraud, including the instances of “friendly...
There are several reasons why websites use cookies. Web sites attach cookies to individuals’ computer hard drives minus their consent. Simply defined, a cookie refers to a distinct identifier placed on a person’s computer by a particular web server. Cookies enable these web servers to assign a unique personal serial...
The CSP program has many advantages. It enables clear and adequately planned presentations by the sales personnel. The program allows the logical flow of information. Additionally, it instills a sense of confidence amongst the inexperienced sales personnel. The program forms an effective method of presentation, particularly, during shorter selling periods....
Balance of payment (BoP) involves an accounting system that endeavors to explore how two or more countries conduct their international transactions within a given duration of time. An international transaction between two countries can be recorded as a debit or a credit transaction. In a credit transaction, money tends to...
Between the 17th and the 18th centuries, mercantilism emerged as a dominant economic philosophy. This particular economic philosophy advocated for aggressive efforts towards increasing exports and severe restrictions towards reducing imports. Nations would, therefore, become rich by exporting more than they imported. By developing the absolute advantage theory, Adam Smith...
The European Union (EU) is a political and economic partnership of 27 European countries. The Europe Commission (EC) is the precursor of the EU. It was founded after the Second World War by six states with the objective of fostering economic cooperation. Economic cooperation was seen as a way of...
A trade bloc refers to an intergovernmental agreement aimed at removing or significantly reducing trade barriers within member countries. A trade bloc consisting of geographically close or neighboring countries is known as an integration or regional trade agreement. A trade bloc helps to reduce or eliminate barriers to trade. It...
Various regulatory activities affect international business. One of these regulatory activities is a boycott. A boycott is an organized effort aimed at restraining a firm from undertaking business with a given seller of services or products. Boycotts are useful in the international arena for economic and political reasons. An example...
Both the International Monetary Fund (IMF) and the World Bank perform important functions in the global economy. The IMF is charged with the responsibility of fostering global economic growth and stability. Also, the IMF provides financing and policy advice to members faced with economic difficulties. Also, the IMF collaborates with...
When comparing the wealth or living standards of a country with those of another country over a given period, economists normally utilize the Gross Domestic Product (GDP). GDP is a tool used to evaluate the value of goods and services produced in a given country. Economists have used the GDP...
Sales ethics are the virtues that salespeople should uphold when carrying out their responsibilities. These are codes of conduct that sales professionals must abide by to ensure that they are fair and diligent to the customers they transact business with. Sales professionals must comply with the codes of conduct established...
The internet offers valuable ways through which a firm can keep in contact with its customers. The internet makes a customer aware of the activities a firm undertakes, which stimulates interest in the mind of a prospective customer. Berndt and Brink (2004, p.106) reveal that the internet enables a firm...
All the customers’ complaints regarding the quality of service that is offered by sales staff should be taken very seriously. Firms need channels through which customers can send their complaints regarding the quality of service that is offered to them by their sales staff. Customers’ feedback regarding the way their...
Increasing the government budgetary surplus or decreasing the deficit is desirable in a period of inflation. Explanation: Inflation is a continuous increase in the overall product prices in an economy, which can result from a variety of causes. Governments try to combat the phenomenon, as it leads to the devaluation...
Saving to buy a new house in seven years would be the best savings account investment to earn interest. Explanation: A savings account is one that pays interest but cannot be directly used for purchases or other exchanges. As such, when deciding to create such an account for some purpose,...
C (why consumers are willing to pay high prices for items), D (why decisions must be made on how to use resources), and F (why a single resource has more value than another resource) are the correct answers to the question. Explanation: Scarcity is an economic concept that indicates that...
Option B is the correct answer because filing for bankruptcy absolves a person of repaying some kinds of debt, for example, personal loans or credit card charges. Explanation: The definition of a bankruptcy is the official and legal declaration of an inability to pay back any debts, notifying all current...
The correct answer is D (it can decrease inflation) as the central goal of all contractionary policies is reducing inflation. Explanation: While contractionary fiscal and contractionary monetary policies can increase interest rates (answer A) and decrease available credit (answer B), these are tools used to achieve a higher goal, rather...
The government controls factories and other forms of production (answer D) is correct since government control over the means of production is essential to the definition of a centrally planned economy. Explanation: Socialism, communism, and all other ideologies, which rely on planned production, gain control of economic cornerstones, such as...
Government control over production (answer B) is correct due to the definition of a command economy being an economic system that is centrally planned and guided by the government. Explanation: The characteristics of a planned economy are lessened private ownership and diminished income-driven initiative, which leads to the decrease of...
Of the four answers, B (a numerical rating that expresses how likely you are to repay your debts) is correct because the definition of credit score is a mass of numbers intended to measure a person’s financial trustworthiness. Explanation: The best way to do so is by showing how often...
They both are aimed to achieve their goals with minimal waste. Explanation: The scope of economics affects a more noticeable platform than just political entities do. It influences people and organizations, and not only market prices. In capitalism, economies are driven by a desire for growth and profit. This desire...
B. The two economic laws exist in theory. They work in practice, but real world factors can have an effect. Explanation: The law of supply and demand is used to explain interactions between the buyers and the sellers from the perspectives of some resource. This law is illustrated in the...
Along a track in the same direction. Explanation: According to the law of supply in economics, if the price of goods increases, the number of goods will also increase and vice versa. The reason for it is that when the price grows, suppliers will try to maximize their profits by...
The types of investments that banks use to make a profit are: a. Buying stocks and bonds. b. Buying several properties. c. Buying the rights to loans. Explanation: Commercial banks are profit-oriented organizations that use diverse ways to gain benefits. The primary source banks can use to make profits is...
C. High levels of education. Explanation: A standard of living can be defined as the level of the population’s comfort, wealth, and the availability of goods and necessities. Standards of living are often used to compare countries or nations; for instance, in China, they may be higher than in Kenya...
A currently unattainable production. Explanation: A production possibility curve, or PPC, also known as production possibility frontier or PPF, is the representation of the amounts of goods and services an economy can produce using the given technology and resources. PPC is used to analyze the amount of production that would...
C. The interest rate. Explanation: Mortgage can be considered a loan that the borrower should pay to a bank for the ownership of a house. The interest rate is the price of the mortgage or a proportion of the loan that an individual should pay for getting a loan. The...
Correct answer is: the personal ownership of property. Explanation: Command economy can be identified as the system in which the government makes all decisions related to the economy. For instance, the types of produced goods, their volume, and level are under the government’s regulation. The goal of a command economy...
The correct answer is 1) what goods and services should be produced. Explanation: In trying to cover the needs of its people, each society needs to answer the three basic economic questions: What should we produce? How should it be produced? And for whom should we produce it? These questions...
The lack of competition within a monopoly means that the monopolists set their own prices. Explanation: A monopoly may emerge in a market where one company, business, or entity is the only dominant force that offers a specific product or service and, hence, meets customers’ demand fully. With time, this...
The correct answer is deciding who needs the goods and services that are about to be produced. Explanation: “For whom should we produce?” is one of the basic questions of economics regardless of the economic system – command, market, or mixed. To understand it better, you should study two concepts...
The correct answers are 1) produce more goods and 4) use fewer resources. Explanation: In the economic theory, the definition of absolute advantage is the ability to produce as much of a product as possible while using few resources. On the other hand, comparative advantage is something that can help...
The purpose of government regulation in a mixed-market economy is to protect corporate rights. Explanation: A mixed-market economy is a type of economy where the factors of production are controlled by both the formal authorities and the private market. It is safe to say that each and every of the...
The correct answer is fulfilling many needs and wants of society. Explanation: By definition, a factor of production is any resource that is used to produce a good or service. The economic theory acknowledges the general scarcity of resources and their uneven distribution between countries, regions, and local producers. Thus,...
The correct answer is power retailers. Explanation: There are several kinds of stores that differ in terms of size and range of products offered. Specialty stores are small and have a limited variety of products. A department store can be large, but often has moderate selection because it focuses more...
The correct answer is B. Stocks allow investors to own a portion of the company; bonds are loans to the company. Explanation: The primary difference between stocks and bonds is the relationship between the investor and the company following a purchase. Stock represents shares in a company, which means that...
The correct answer is B (bond). When you buy a bond, you are loaning your money to an organization. Explanation: Bonds usually have an end date, which is when the entity that received the loan must pay it back with interest. Due to their temporary nature, bonds are used by...
The correct answer to this question is B. The primary goal of the consumer financial protection bureau is to protect consumers against abusive or deceptive debt collection purposes. Explanation: This means that the CFPB has jurisdiction over various financial companies, such as banks, credit unions, and debt collectors. Financial regulations...
The abbreviation CFO stands for Chief Financial Officer, who is an official whose responsibilities include managing financial activities of companies. The financial director also carries out business planning, monitors the movement of finances, analyzes the financial condition of the company, its strengths, and weaknesses in this regard, and makes proposals...
The estimated date of confinement is the date when a pregnant woman is expected to give birth to a child. Usually, an exact date at which an infant is born is calculated from the time of the last menstrual period of a woman. It is common to give birth between...
The contribution income statement is an instrument that demonstrates whether a business has generated some revenue over a particular period of time. In other words, contribution income statements are used to measure the performance of a company by dealing with variable and fixed expenses. Explanation: To begin with, one should...
A credit is a normal balance in the retained earnings account. If it is so, this fact denotes that a business has managed to generate some profit over its existence. Explanation: Retained earnings, also known as retained capital, stand for the funds that a company possesses after it has dispersed...
The weighted average contribution margin is an amount calculated to determine project profit levels for different amounts of sales. It presents an average amount that a group of services or products pays for the fixed cost of a business. Explanation: It is important to have an opportunity to calculate how...
There are situations in companies where dividend payments cannot be made at the moment, and then it is called dividends in arrears. In such situations, they speak of dividends in arrears, which are dividends overdue by the date of payment. Explanation: When a firm has dividends in arrears, it means...
The degree of financial leverage (DFL) is the coefficient by which a proportional change in net income and fluctuations in operating income of a company due to changes in the capital structure of business are calculated. This degree is used to estimate the amount of debt to be paid. Thus,...
Marketing intermediaries are independent companies that help other corporations in the promotion, marketing, and distribution of their products to the consumers. These include distributors, product brokers (agents), marketing agencies, logistics firms, and financial institutions. Some types of marketing intermediaries are given down below. Explanation: Intermediaries, such as distributors, are wholesale...
Average accounts receivables are the average amount of trade receivables on hand during a reporting period. Average accounts receivable formula is found by adding extra data points of Accounts receivable (AR) balance and dividing by the number of all data points. Explanation: This term is closely tied to Accounts Receivable...
A bond payable is a debt paper, according to which an issuer must return to the investor the value containing the face amount, par amount, or maturity amount of the bond and the percentage for using the funds (interest) within the agreed period. This account typically appears within the long-term...
When it comes to investing, it is clear that the connection between risk and return is that the higher performance of the investment causes a higher risk. Explanation: The point of investing is growing the highest amount of money as much as possible within a specified period. Investing is a...
There are many classifications of the target audience, and it is best to select them individually for each specific situation. VALS is a system developed in 1978 by SRI International. A person’s way of life reflects his or her world view, it depends on principles and inner beliefs. The name...
Selective incorporation is used in order to ensure the observance of constitutional rights in state laws in the United States. Explanation: In the process of creating the U. S. Constitution, there was no restriction of federal powers, and to fix that, the Bill of Rights was designed. However, the Bill...
Any investment transaction, whether it is a passive or an active exchange operation, carries elements of risk. The main proportion of investment theory is that potential return is inversely proportional to the level of risk. Explanation: The risk increases due to the lack of predictable fixed returns, but potential profits...
The marginal rate of technical substitution is the amount of capital that the manufacturer should refuse to use with an increase in labor costs per unit when old and new resources provide the same output. Explanation: The marginal rate of technical substitution (MRTS) shows the ratio of a change in...