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The strategic situation Google is currently facing is based on the previous events experienced by the company. In particular, within the past years, the company has faced several legal cases related to its performance ethics on a global scale. Moreover, the company has launched projects and products in such subsections...
The company enjoys a sustainable competitive advantage over its rivals since it has gained a large number of buyers who prioritize Google’s products over other products in the market on a long-term basis. In particular, within the segment of internet search, the statistical data presented in the case study allows...
Buyer bargaining power is medium due to the influence of a company’s reputation on the likelihood of buyers using its products. In Google’s case, the company has suffered a decline in brand reputation due to legal cases. The threat of new entrants is low because the industry of information technologies...
The key success factors for Google include: Expertise in developing efficient internet search tools and applications. The company has a long history of developing internet search engines. Moreover, it currently dominates the search industry. Quality control of technological products. The company strives for excellence in performance and cherishes users’ experience,...
Given the details of the case study, the most influential factor among the six PESTLE factors is the technological one. Although the company’s current strategy is significantly influenced by legal issues, its revenue-generating capacity is derived from the technological aspects that might limit Google’s competitive advantage over its rivals. With...
Price escalation causes a decrease in demand for goods and services by a company. It also leads to increased profit margins due to the huge difference between the production cost and the selling price of a commodity. An increase in the cost of a commodity has a detrimental effect on...
The article “After a huge year for growth, the U.S. economy is about to slam into a wall” that explains the American economy effectively and shows the prospects of its development is by Cox, titled “After a huge year for growth, the U.S. economy is about to slam into a...
Every sector of the Italian economy decreases by 1913. However, some noticeable sectors, such as iron and steel, reduce from high annual growth of 13.8% between 1896 and 1908 to 5.0% between 1908 and 1913. Another notable drop occurred in the engineering sector, from 12.2% to 2% within the same...
There are many articles addressing different aspects of the GFC, with the most recent focusing on the lessons learned. Oliver highlights seven key lessons learned about the economy being bound to experience cycles characterized by a boom and recession. Each cycle is unique and causes markets to be stretched to...
In response to the economic crisis, the legislative bodies came up with different laws to streamline the financial sector. This has come a long way in saving the population against another financial meltdown. At an individual level, the crisis helped to underline the importance of being cautious in undertaking investments....
The actions by Henry Paulson and Ben Bernanke did not sound well to the public, who saw the move as a bail-out to Wall Street for mistakes made by investors in the housing market. However, given the volatile situation, the intervention helped to save the American economy from capsizing. Still,...
The video points to different lessons involving big investments in securities by the Fed and the diffusion of large stimulus reviews to the population. It also emphasizes the need for enhanced social security plans to cushion people in the event of a crisis by maintaining their consumption cycle. In addition,...
The credit crisis involves financial lenders and individual investors, who are brought together by the monetary framework and market, that is, Wall Street. The financiers engage weaker assessment rules in providing financial services to the investors. However, the financiers do this with the appetite to earn higher returns fueled by...
Poverty affects each country on a different level, with some having an extremely high rate of unemployment and wages below the line to support one’s basic needs. The highest incidence of poverty is in ethnic minorities – Hispanic, Native American, and Black persons, while white married couples are among the...
As of the beginning of 2008, the Chinese automobile market was in equilibrium at point E, formed by the intersection of the demand curve (D) and supply curve (S). The equilibrium price per vehicle was OP, while the equilibrium quantity per car was OQ cars. The rise in wealth spurred...
Market forces largely determine oil and gas prices. According to a study conducted by Akinrolabu and Haruna on the Organization of the Petroleum Exporting Countries (OPEC) at 60 years, by December 2020, oil was plentiful and in high demand. Oil prices are influenced by various factors, including the fundamental economic...
The company specializing in manufacturing such appliances as ovens, washing machines, and refrigerators can use a transnational strategy that combines several features of multi-domestic and global ones. Although most devices are primarily standardized and required by customers from different countries, it is necessary to consider local preferences. For instance, clients...
The company that produces apparel and footwear for customers from 50 countries should employ a multi-domestic strategy. First of all, the clothing industry has various standards in different states. Secondly, people have diverse religions, which sometimes dictate the norms of style. Moreover, customers can live in multiple climatic zones and...
Inflation is the rate at which prices increase with time. It negatively affects people with low incomes because the cost of living rises. Inflation can benefit people with debts as money loses its value. To lower the inflation rate, governments change interest rates which influence people’s borrowing or putting money...
Economic growth can be described as an increase in the volume of goods and services produced or their economic value. It is measured in the gross domestic product (GDP) by a country over a period of time. With economic growth, unemployment and poverty are believed to decrease. Increased output of...
A monopoly on the market is achieved when one company or entity possesses absolute power over it. Currently, such businesses as Microsoft and Google can be considered monopolies. The first dominates the market for operating systems, and the second is the largest search engine and advertisement platform. To be classified...
There are four main types of unemployment; the first is frictional unemployment – it is a personal problem that describes people who enter the job market after graduation, those who move to a different city and are looking for a new position. The next type is structural unemployment which arises...
The nation’s electricity sector is the most successful faction in Italy’s economy, eliciting a 10.5% annual growth rate between 1908 and 1913. It also showcased higher growth between 1834-1913 and 1896-1908, with 15% and 17% annual growth, respectively. Furthermore, the iron and steel sectors also exhibited high growth until 1908....
The UAE international company specializing in producing mobile phones can use a global strategy. This strategy signifies that the organization has a global brand and does not pay much attention to the requirements of local markets from different countries. Since mobile phones are pretty standardized gadgets that primarily do not...
Perhaps it would be better for the company producing dry soup mixes and canned soups to employ a multi-domestic strategy that considers the local markets’ requirements and differences. Food production should often be accompanied by thoughtful exploring of customers’ culture. The soup industry is not as standardized as technology: the...
The cash flow statement demonstrates the liquidity and solvency of the business. Based on the position of finances and their equivalents at the beginning and end of the selected period of time, it shows the movement of the cash during this period. All activities involving the movement of money are...
Cash flow refers to the cash and the equivalents that pass through the company, constantly entering and leaving it, in contrast to the profit remaining in the company. If it exceeds network income, we can talk about the reliability of the company and its profitability. At the end of 2019,...
This consolidated statement is part of the balance sheet and shows annual changes in the financial balance of stockholders and shareholders. Shareholders’ equity means the amount of money that they can receive after withdrawing all assets and paying debts – the balance goes to legal entities depending on the level...
This balance sheet contains data on the assets, liabilities, and equity of the company, including both specific cash and investments, and debts. The number of assets indicated in the balance sheets is 321.195 million dollars. It is made up of current assets (cash and its equivalents, marketable securities, inventories, and...
The financial activity of the Amazon company is considered. The last annual report posted on their official website is taken, which makes it possible to see the comprehensive financial growth of the company in recent years. These giants of the modern business industry were chosen due to the wide coverage...
Due to profitability and growth in influence, Amazon is seeing an increase in operating profit. The operating income in the 2020 report of the Amazon company is equal to the difference between net revenue and operating expenses. Referring to the variety of categories and services, the company emphasizes that it...
The contract of international sale is concluded between parties whose commercial enterprises are located in the territory of different states. To recognize the contract of sale as international, only one condition is sufficient – the location of the commercial enterprises of the parties in different states.
In general, bonds may be defined as long-term debt obligations, the original issue maturities of which are greater than one year. As fixed-income securities, bonds represent loans made to government and corporate borrowers to raise their funds and support long-term capital needs, for instance, capital expenditure projects. In return, bond...
First of all, I partly agree with a classmate that Moon is misreading real estate pricing displays. It should be noted that the real estate market is a very inert area of the economic system. The high inertia of the real estate market is due to many reasons. On the...
Moonn reflects on the impact of the exchange rate changes between the U.S. dollar and the Japanese yen on Japanese automakers, and I agree that this issue deserves particular attention as exchange rates substantially affect multiple economic sectors. Due to the stimulating policies of the Japanese government, the Japanese yen...
First of all, it must be said that I do not agree with the tutor because he mixed up the contracts. A forward contract is an agreement between two parties for the delivery in the future of the subject of the contract. This agreement is concluded outside the exchange. The...
One of the most important economic problems in America today is a huge public debt. The Federal Reserve kept rates near zero and carried out three rounds of quantitative easing. The problem with a high level of public debt is that the government has to spend more money to pay...
Wirecard was initiated in 1999 and instantly started as a payment-processing board aiding internet sites in gathering credit card disbursements from clients. Reasonably, it was for the future technology to transform the old ways of making transactions that were considered to be analog and waste a lot of time. Everything...
Wirecard Company was the favorite financial technology scene across European countries, especially Germany. It helped create excellent partnerships with like-minded countries that could use their brands in online business. However, Wirecard Company is now facing a fight from all corners of the market globally to survive to carry out its...
Regarding M&A activity, the allegations of Wirecard are accurate and are not limited to financial reporting and TPA business. First, the claims of carrying out a fraudulent company are pretty disturbing; it hurts the industry’s growth. In M&A activity, consolidation with other entities is always prioritized, as this will help...
The Wirecard affair elevates inquiries concerning the marketplace and institutional bungle’s efficacy. Several methods designed to combat corporate fraud and deception have fallen short in some ways. Many fraud activities inside the Wirecard Company are difficult to control. Sensibly, the way the customers are fabricated through Wirecard communicates how the...
Bad Communication Most company enterprises and government administrations tend to have poor communication systems that encourage corruption. Corruption, and when there are no actions taken to curb corruption from taking place, unethical deeds will happen. An attractive example is what happened with the Wirecard Company, in which some of the...
Several structural governance problems in Germany have not been addressed due to a lack of inclusivity. Income inequalities have escalated through the early 2000 years, and this problem has affected many business entities in Germany. Wirecard Company, there was a lack of integrity due to non-inclusivity, which was the reason...
Wirecard was a fraud that was publicly known, thus raising so many questions about their business practices. Regulators and important financial players treated the company as a rock star, fabricating customers, inventing earnings, and lying about the whereabouts of €1.9 billion in cash. In a business setup, high integrity must...
As globalization takes a leading role in business development and entrepreneurship, cultural influences have become increasingly important. Investing in a new region presents companies with challenges in handling cultural changes. It has been proven that cultural awareness affects a company’s capacity to penetrate a local market, build and manage business...
Since the inception of the field of international business (IB), scholars have argued how firms might address the tension between local adaptation and global interconnectedness in their strategy to compete in a global setting effectively. In today’s complex and competitive landscape, many multinational corporations (MNCs) are subjected to a multitude...
For successful entry and domination of new global markets, companies have acknowledged the need to join strategic national and regional alliances. These joint ventures play a crucial role in facilitating market entry through minimized costs and improved research through collaboration. However, these alliances may limit a company’s autonomy through shared...
Regional integration has become increasingly important with the growth of internationalization. A regional manager is charged with facilitating company growth and development in their region of operation. Due to the interconnection between key market players, n company can survive on its own. A regional economic integration entails an agreement that...
As the global economy thrives and competition among “global players” grows, CEOs and top managers are debating how to identify effective globalization methods on the basis of how and where to join a foreign market. Surprisingly, most businesses try to adhere to their old methods of doing things, which means...
For consumer behavior, and more specifically, for consumer choice, it is very important to know how much the buyer is willing to pay for a particular product. At the same time, an economic phenomenon arises a consumer surplus. The consumer surplus is the difference between the potential willingness to pay...
The four main market structures include the perfectly competitive model, monopolistic competition, monopoly, and oligopoly. The perfect competitive structure stands out due to features like many sellers and buyers, each exhibiting an excellent comprehension of the market. The sellers and buyers know the prices charged for all the items on...
Each of the four market structures has both advantages and disadvantages. The perfectly competitive model, for example, has benefits like cost-saving, freedom of choice, profit maximization, and the lack of artificial limitations. Cost-saving mainly touches on the fact that both sellers and customers do not need to incur additional expenditures...
Transfer pricing is the system that multinationals use to control their expenditure on taxes and costs. The strategy has both benefits and demerits. Examples of such benefits include: Tax advantages – Transfer pricing helps multinationals control their expenditures on (corporate) taxes by paying taxes in only the nations where specific...
Alfred Marshall defined the equilibrium price as follows: when the real volume of production exceeds the equilibrium level, the supply price becomes higher than the demand price. This will mean that it will be possible to sell goods only at the price of demand, that is, below the cost price....
The theory of value created by Marshall implies that at the point of equality of two types of prices – the price of demand and the price of supply – an equilibrium price was established. It represents the actual value of the product, and that is how value creation occurs....
The price of sugar has gone up due to a fall in supply from India and increasing demand in Brazil for the production of ethanol. In economics, a market where the price of a commodity is influenced by supply and demand is regarded as perfect competition. A perfectly competitive market...
The supply and demand curves conventionally characterize the association between the number of units of a product that are supplied or demanded at a given price. The ratio between the proportionate change in the quantity supplied (Qs) or quantity demanded (Qd), and the parallel percentage change in price is what...
The fluctuations in the price of ethanol affect the market for sugar through the effect of related products. This would cause the demand curve for ethanol to shift either to the right or to the left, mutatis multibus. Related products can either be (1) complements; or (2) substitutes. Substitutes are...
In the short run, the companies may be faced with a higher cost of production. However, the companies cannot vary the costs, especially fixed costs. If the short-run period is sufficient, the firm may be able to vary the variable costs because they change with the amount of output. The...
Amgen was very successful during the years 2000 to 2006, which was also Sharer’s first six years at the company. During that period, Amgen’s stock price grew from $60 when Sharer took over to over $70 at the end of that period. Its market capitalization grew to a level where...
No, Amgen did not do well during the years 2007 to 2009. This period coincided with a time of hostile market conditions and concerns about the prime products of the company. Amgen saw its growth reduce significantly, and the stock price was also affected.
Yes, patents created monopoly power for Amgen because the company was initially an innovator. It was involved in research and development that targeted chronic illnesses and had a wide variety of products in the pipeline. After the expiration of Amgen’s patents, competitors would be able to produce identical drugs to...
Other companies are allowed to produce and market biosimilars and generic drugs when the original manufacturer is no longer protected by intellectual property rights. Other firms will be able to produce similar products to those protected by the patents, which means competition for the products will ensue.
To defend its core business, Amgen argued that the biosimilars they produced for the U.S. market were different from generic drugs. The company created more awareness of its business to protect its interests and products. In Europe, Amgen took the path of a reputable and valued innovator to defend itself....
At the peak of its growth in 2006, Amgen looked to expand its business even further. The market for biosimilars was lucrative, and the company only needed to join it at the right time. It carried out research and extensive market analysis of the venture to ensure it was a...
Amgen had set its business up as an innovator that produced cutting-edge products. The biosimilar business was lucrative purely on business but would dilute its image. It was widely thought that changes in the business model would affect its reputation as an innovator. Resources would also have to be diverted...
If I were the C.E.O. of Amgen, I would not produce biosimilars primarily on the basis of the business. The company’s success was out of its effectiveness and reputation as an innovator, and producing biosimilars would impact the existing business model. Instead, other options I would explore are a consultancy...
Capital budgeting is evaluating a prospective project’s cash inflows and outflows to reveal a possible profit. Duncombe underlines that “It was first developed in the 1940s.” Based on this definition, it is evident that capital budgeting is an essential part of a company’s financial activities. Precisely through this process, it...
Prices should be wrong by design, and this acts as a marketing strategy serving varied purposes for the company. Increasing the price of a community beyond its required market value may decrease the sales of a commodity but also attracts customers who desire luxury goods. This is because these customers...
Advantages of countertrade include its ability to enable companies to venture into tough markets with a shortage of foreign currency. It also empowers companies to compete better against their adversaries as its product is familiar to the consumers. It also enables companies to dispose of surplus or declining products. Drawbacks...
My company gets very successful hence the launching of other branches takes place. It is also able to sell out most shares and earns a lot of revenue in return for the company. When I had to leave for the Pacific for my passion for underwater photography, the company was...
Stock options are a form of compensation that is mainly used to attract potential employees and for the retainment of existing employees. Stock options are offered to potential employees as an incentive to increase the possibility of purchasing shares of the firm at a discount rather than purchasing shares at...
Economic growth in a given country can be monitored through several factors and economic indicators such as GDP. However, the pure values of the parameters cannot reflect the peculiarities of the course of economic processes. Therefore, it is also necessary to take into account the peculiarities of the state in...
The consumer price index is a means of measuring price changes in the economy over a selected period. Using this parameter, one can assess the economy’s direction and the standard of living of people in the country. However, since this value is average, it does not reflect all the intricacies...
I and the management happen to raise funds from financiers. Raising funds through lending is one of the sources of funds for any company. The rising of funds through borrowing from outsiders may result in agency cost of debt. Agency cost of debt refers to the disagreement of interest among...
If I need additional capital, I will have to sell some stock to potential investors. Selling shares to the new employees raises revenue for the company and gives the new investors ownership rights. The company also increases the dividend obligation payable to the shareholders at the end of the trading...
Stock exchanges are online or physical venues where such financial securities as shares, unit trusts, bonds, and derivates are traded. The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ) are the two premium marketplaces for stocks in the United States. They account for...
The free cash flow (FCF) represents the surplus finances available in a company after funding all its projects with a positive net present value. According to Abughniem et al. and Yeo, FCF is the net operating income generated by a firm before accounting for such activities, which support operations and...
The weak-form EMH is the belief based on the assumption that actual stock prices adequately reflect security market information (price history, return rates, trading volume). The approach suggests that historical security market data is independent of the future rates of return. Statistical tests of independence, including the autocorrelation and the...
Semistrong-form EMH is the hypothesis that security prices adjust to the publication of available data and reflect all public information. The first set of tests used to examine the semistrong-form EMH is the return prediction studies aiming to estimate the time-series values of future rates of return through the use...
The term ‘abnormal rate of return’ refers to the deviation from the expected rate of return on a security/portfolio. It can be calculated by defining the difference between the actual rate of return for a stock and the expected rate of return. The resulting value may change over time, as...
Efficient capital markets (ECMs) are characterized by the rapid adjustment of security prices according to relevant information concerning security. Thus, the rationale for expecting an ECM is the ability of security evaluation to deliver positive investment results through the use of multiple sources of information. The analysis of historical economic...
If indexing inflates the stocks in the index, I will try to replicate the performance of a market index. This does not require trading, so I will have lower expenses and fees in addition to a greater diversity of investments. Moreover, by mimicking the returns of a benchmark index, I...
Indexing is a passive investment strategy to construct a portfolio. I agree with the statement as, in recent years, stocks have increased sharply right after they are accepted by the S&P 500. Although there is a short-term effect of indexing on stocks, it influences the ease of the stock market....
In my opinion, Facebook (FB) is a monopolist, even though there is no clear and unambiguous evidence regarding this statement. In fact, the company occupies a dominant position among others at the global level due to the vast base of active users, the power of prices, and the absence of...
Today, digital platforms and various software environments represent a new kind of market power. Facebook is one of the most widespread phenomena around the globe, which has consolidated leadership positions in particular niches. The sources of Facebook’s market power are immense access to user data, comprehensive coverage of influence and...
Amazon envisioned worldwide development as a result of the vast range and ease given by online retailing. The internet strategy introduced it to a global market, increasing demand for its items in other nations. Subsidiaries in some countries, such as the United Kingdom and Japan, did better than subsidiaries in...
The Market Economy does, in fact, affect programs such as “Patrimonio Hoy” due to the fact that it establishes competition in the economy. This competition leads to changes in pricing, as well as the structuring of the loans. Cawman and Fine-Skalnik (2021) state that “this activity requires competitive and comparative...
When costs are not properly accounted for, it results in profit being overstated, since the income is a constant regardless of expenses. Such inflation will affect the representativeness of data negatively, overestimating a firm’s profitability for potential stakeholders. Additionally, it might create additional issues with direct management of the business,...
If uncollectible accounts’ provision decreases continuously, the associated reduction will have no impact on future years’ income statements, whereas if the amounts are not increased or decreased, the overestimation will persist at the same rate. In this case, however, the CFO chooses to increase the provision for the following year....
It is clear that Chipotle has taken the food poisoning incidents in its restaurants seriously and, thus, implemented well-thought means to prevent future incidents. The fact that Chipotle’s managing lead decided to cooperate with the state and federal health officials speaks in their favor, as together, they managed to develop...
Discuss the Wheel of Successful Intelligence. What does the wheel show about the balance you perceive in your three thinking skills? If it were a real wheel, would it roll? If yes – why. If not – why not. Based on the appearance of the wheel, in which skill do...
As the new HR Director of a company in the behavioral health industry, you have the responsibility to develop a performance management system. Given several key practices for a successful performance management system, which ones should be implemented first? Identify key measurements to transition the company from the current system...
Discuss the Causes and Consequences of the Great Recession of 2008. Discuss and analyze the Housing Market Crash Leading to the Great Recession of 2008. U.S. Watch on Tax Structure. Is it designed to help the poor? The research component requires that you specify a methodology to accomplish your objective.
What additional audit procedures do you think are most effective in detecting abuse or fraud related to executive compensation? In your opinion, what are the costs and benefits associated with compensating executives with stock or the option to purchase stock? What do you believe are the most effective audit procedures...
Discuss broadcasting and other innovations in business. How can an idea become such an innovative product or solution? What does it take to transform an organization into one driven by innovation and capable of deploying innovative products and solutions? What does it take to create completely new innovative organizations and...
Discuss merchandising businesses in your area. What are its inventory policies and accounting system? What merchandise inventory does the business sell? From whom does the business buy its inventory? Is the relationship with the supplier new or longstanding? What are the FOB terms on inventory purchases? Who pays the freight:...
Discuss how to create effective business messages. Describe each of the three components in the AIM planning process for business messages: audience analysis, idea development, and message. Explain the general nature of excellence in business thinking and how it applies to the idea development stage of planning. Discuss basic considerations...
What is a down payment? Discuss the Minimum allowable down payment. What is a down payment? Discuss the Minimum allowable down payment. What conventional wisdom says a down payment should be? Explain the LTV. Explain the PMI.
The supply chain is a topic that blends multiple skill sets, such as collaboration, ethics, and technology. Let’s discuss this topic. What is a supply chain? What is the objective of a supply chain? Why are supply chain decisions important? Explain how the issue can be resolved, or if the...