Ford and Wal-Mart Businesses - Assignment Example

Questions Student’s Name Institutional Affiliation 1.1.1 The four external factors that affect business include the government, economy, consumer trends and public pressure to act as good corporate citizens. For Walmart and Ford, the change in economy would mean that the purchase power of consumers reduce and thus low profit margins. This effect will be brought especially by inflation that means higher pricing keeping off most consumers. Government regulations have to be adhered too, when these regulations are not well met Walmart as well as Ford will have to lose money in funding legal fines. When the consumer trends negatively shift from a product would result in loses on the goods already stocked. The seasonality of the computer trends will define the market share of the goods in question. Lastly, the industry in which Ford and Wal-Mart operate make decisions depending on the desire to be a good corporate citizen. The two organizations will have to iron out all issues that have attracted the attention of the consumers so as to attract their loyalty. 1.2.1 The factors of production include land or any other natural resource required, labour, capital and entrepreneurship. The land could be leased or bought so as it set up the factory. For the necessary materials, they can either be imported or sourced in the local market from various manufacturers. For labour, the source would definitely be the local population as well as importation of experts in case they are not locally available. Capital can be through very many channels such as loans, savings, and equities among others. Lastly, for entrepreneurship the source would be the people charged with running the company.in matters relating to the necessary technology, the best way would be through leasing then as the firm progresses the management considers to make a purchase. As mentioned the source of money could be through sponsors, loans, grants from the government and savings among others. 1.2.2 The first question is, what are the goods and services that should be produced to meet the needs of the consumers? This covers the quantity and the time utility as well. The next question is: how the goods and services should be produced, by whom? what resources are necessary for the production? The last question is who should receive the goods and services once they are ready? This last question basically covers the allocation of goods among the consumers in terms of time and place utility. The answers to the three questions differ with reference to the economic system in place. In this case Cuba is a planned market system and thus the government has hand in allocation and distribution of goods as well as services. On the other hand, USA has free market economic system, where a large number of businesses are owned and operated by individuals thus allocation of goods is widely controlled by the competition. 1.3.1 The major factor that affects the supply of oil is the price of the oil. Prices equally affect the demand of oil as well. When the prices are high the supply of oil is much. However, this does not mean that even when the prices are normal the supply ceases. The supply will still be in place but it will be low compared to when the prices are very high. At this point where the supply meets demand, the pricing will be at equilibrium since there are no external factors affecting the supply. However, when the prices are too high the supply side will increase so as to make large profits. 1.3.2 More oil reserves would mean that the supply of oil meets and exceeds the demand. Consequently, the prices of oil will fall as the supply of oil would mean much sales that are then ploughed back into extraction and production processes. As the oil reserves increase, the supply of oil to the consumers increase and the external factors are countered. Additionally, the competition brought in by other small producers is also reduced thus prices reduce to a flat rate in the industry. 1.3.3 In this scenario, the cost of production would be higher than normal. Consequently, the pump prices of gas would be increased so as to meet the costs of production. The prices are likely to increase and this is dictated by the pump prices announced by the energy regulatory bodies. The distributors will also have to incur extra costs in transporting oil and this will only be balanced through increasing the prices. This would mean that the final consumer will be the one with the burden of meeting the increased production cost. 1.3.4 China is one of the largest Asian oil consumers. As its economy expands it would mean that the demand of oil would increase. To meet the demand, the production side should be able to hasten its processes. Eventually, this would automatically mean that the prices will be escalated as regardless of the rise the economy would still need oil to run. This is also relative to the increase in the population that are also dependent on supply of other products that heavily depend on oil as the major source of energy for most production and distribution units. 1.3.5 The price of gas will be cheap since its demand would have fallen. The supply and demand side would be imbalanced leading to fall in the prices. 1.3.6 In the short run, this would be possible because the demand for such products would be high. However, in the long run the answer would be no since oil is not a renewable source of energy. 1.4.1 There are four types of competition: perfect competition, monopolistic competition, oligopoly, and monopoly. Monopolistic competition allows freedom of entry and exit, but firms are still able to differentiate their products. Some firms are however best placed in making supernormal profits that will encourage them to make normal profits with time. Example is a tooth paste and toilet paper markets the producers play around with packaging and better adverts to lure customers an thus become superior. Oligopoly is where there are few sellers and low entry into the market due to higher costs. An action by one company is emulated by others to be better placed in the market. A good example is cellular phone services and smart phone and computer operating system industry. Apple iOS and Google Android dominate the smartphone OS while Apple and windows computer operating systems. Monopoly is where goods or services produced where there is no substitute and thus suppliers are protected from competition by barriers of entry of new firms. A good example is water services and Cable television as well as the U.S postal service. Perfect competition is where there is no single participant that has power to control the market price of a homogeneous product. An example is in the local market there are more farmers selling the same produce. Secondly, in the foreign exchange industries where there is different sellers and buyer. 2.1.1 Any behavior that violates or breaches academic integrity can be referred to as academic dishonesty. There are many behaviors of such kind. First off, collusion of any form between students and other stakeholders such as teachers and parents in stealing examinations. Secondly, another form is completion of exams or assignments on behalf of other students. The third one is plagiarism where the authors of various works referred to are not acknowledged. The other one is pretense in order to skive some academic activities. Lastly, another form is the use of technology to gain competitive edge over other students. 2.1.2 Just like the forms of dishonesty vary, so does the consequences. The students might face the board or the senate where punitive measures are taken so as to ensure the vice is not replicated amongst others. Secondly, the student might be asked to redo the examination or assignment. The third measure could be expulsion or being suspended as investigations take place. To its worst, if the student had already graduated, their degree certificates may be nullified. Lastly, where necessary the administration may fine the student. The person is also given time to appeal the consequences and if they have weight in their arguments the consequences may be reviewed. 2.1.3 To be in a better position as a witness of academic dishonesty, it is good if one reports to the relevant authorities so that necessary measures are taken. Failure to report would mean that one is tolerating the vice and is as equal as the one that is committing the vice. Through reporting the vice, one would be opening up fairness in the system of academics that is being breached. At times also when the consequences are being felt, even the witnesses who failed to report are regarded as part of the problem too. So the best thing to do would be to report to the relevant authorities for proactive measures. 2.2.1 Ethical dilemma refers to a morally problematic situation where there are two or more alternatives that though acceptable are important to different interest groups. Overall, this is often addressed with the term right versus right decision, similar to what James Burke the CEO of J&J had to make in the year 1982. On the other hand, ethical decision deals more with right versus wrong decision where there are two choices; one ethical and the other illegal or unethical. Making the latter decision attracts ethical lapse that increases the odds of making an ethical decision. An example ethical decision is when there is a choice between cooking the audit results and revealing a problem that an auditor has identified. 2.2.2 Ethical lapse refers to the act of making a decision that is unmistakably illegal or unethical. Put in simple terms it basically refers to errors in judgment or mistakes that have harmful consequences. In the academic domain they have been attributed to fallacies and are immoral whether publicized or concealed. An example is when a CEO pressures an auditor to doctor the results of the financial reports so as to have more stakeholders investing in the firm in question. If the Auditor, succumbs to the pressure they are said to have partaken an ethical lapse. 2.3.1 It is unethical to use the work place computers for personal activities as this amounts to misuse of office properties. It is unethical as this reduces the productivity of the employees. They will spend too much time on their personal activities rather than serving the customers as should. Additionally, this also jeopardizes the security of company data that can otherwise be leaked to the public nd may be used for ill purposes. For instance some personal activities such as social media sites have spywares that collects information that is pertinent and uses it for competition purposes. 2.3.2 Employee monitoring is very unethical as have been debated in most talks. When the employees are being monitored their behavior also changes especially when they fear that their jobs might be at risk. Monitoring the employees also breach their privacy rights as some of them do so for the good of their lives. Computer usage should not therefor be monitored at any costs unless there is an agreement between the employer or the management and the employees. 2.3.3 The question as to whether the employer has legal mandate to monitor the computer usage of the employees has attracted attention. Some consent has to be on the side of the employees for this to take place, failure to which legal actions can be taken against the employer. To ensure that the employees who illegally use the internet receive punishment. The employer is not mandated by law to monitor employees as their privacy and rights are also infringed through monitoring. However, when certain agreements are in place, then some legal agreements can be coined. 2.3.4 First, I would ensure that I communicate well with the employees and coin some agreements. Secondly, I would ensure that there are well written regulations and policies regarding the same. The nest strategy is blocking access to all sites that are non-work related and having a manager whose duty is to reprimand employees who do not abide. Thirdly, I would ensure that there is a software that logs in all the accessed sites and from what computer. Fourth, I would terminate the employment of employees who break the rules or punish them. Lastly, I would educate the employees on the implications of internet abuse. 2.4.1 I believe she is an ethical leader by the mere fact of her unique attributes. First off, she is a visible role model that lights up the way for her subordinates. Secondly, she has been in the forefront of proposing ethical frameworks as well as communicating ethical expectations through ensuring that the code of ethics is well adhered to. She has also arranged for seminars and meetings in her organization to train her subordinates on ethics. Fourthly, she also promotes financial integrity and is transparent. Lastly, she has institutionalized the ethical culture by measuring the productivity of employees based on the code of ethics in place. 2.5.1 Stakeholders of university of Canberra include the employees, the parents, the students, suppliers, the community, the government and other partners. The employees are provided safe and healthy working conditions as well as good salaries and wages. The parents are given value for the money that they invest through quality services to the students. They are also involved in some parts of decision making. The community has the advantage of getting jobs as well as some community based initiatives funded by UC. The government benefits from taxes and being involved in decision making as well as students for various job positions. Lastly, the students are given fair treatment, quality services and engaged in various activities. 3.1.1 From the number of hours taken john has an absolute advantage in both report writing and preparing presentations. This is because total of his time combined is far much low compared to that of Jennifer who has absolute advantage in preparation of presentation. 3.1.2 John has comparative advantage in that he uses a total of 120 hours to do both tasks, yet Jennifer uses a total of 210 hours to do the same tasks as John. 3.1.3 I would recommend that while John writes the report which would take 80 hours, Jennifer prepares the presentation which would take 60 hours totaling to 140 hours. 3.1.4 I would say that John has comparative advantage in both writing the report and preparing presentations. However, in matters of specialization he should do more of preparing presentations as he will spend little time thus more work. 3.1.4 Jennifer has comparative advantage in report writing as well. She should specialize too in report writing. 3.2.1 Importing involves buying of products or goods and services from overseas and reselling them in a native country. Export on the other hand refers to the selling of domestic products in foreign countries with foreign customers. Licensing is some form of agreement between two companies so as to share resources in exchange for royalty fees. Franchising refers to the right of using another firm’s business brands or models for a limited period of time. I would use the Franchising approach as it is more advantageous especially when penetrating a new market with different rules. 3.2.2 I would not move all the operations from Australia that is the core functions will be based in Australia while the manufacturing part of it goes to China due to the availability of supply of labor thus low labour costs in the end. It would not hurt the economy of Australia as I will be paying taxes still. However, at some point Australia will end up being hurt since some of the jobs that otherwise would have been given to the citizens is lost. The population of china will be helped at the same time the business will also succeed due low labour costs. 3.3.1 Yes I am at a disadvantage as the firms will be better placed in winning the bid. Thus in this case the section should be repealed to create a fair ground for all of us who have interest in the bidding. 3.3.2.1 Some multinationals have decided to control AIDS among their workforces owing to the fact that the cost of recruiting in anew workforce is very high and the economic consequences of losing workers would hamper some operations. 3.3.2.2 Most companies have failed due to lack of adequate budgeting and resources allocated for the fight against AIDS. 3.3.2.3 The best thing to do would be to first pay attention to the employees through training and education on the dangers of AIDS. The next thing is to offer counselling services and medical care to the affected. However, from the business perspective it would be wise to engage the employees in programs that will ensure their work life balance is maintained. 3.3.2.4 I would seek for partnerships with organizations that are not for profit for funding in the eradication of the same and also push the government to fund some initiatives even if it means through foreign aid. 3.4.2.1 Jiangsu Hengli Group 3.4.2.2 ANC Textile Limited 3.4.2.3 Acanifintex limited is a leading textile company in Mexico Industrias Argaman, S.A de C.V is outsources labor for children clothes 3.4.2.4 American Textile Company 3.4.2.5 American Textile Company 3.5.1 NAFTA is an abbreviation for North America Free Trade Association. It was formed to combine US, Canada and Mexico into one economic zone with no trade barriers. The countries that are under NAFTA have benefited from the comparative advantage of one another. It has allowed the flow of goods and services as well as capital to pass between borders. 3.5.2 European Union is simply a group of 27 countries that have eliminated trade barriers amongst themselves. It was formed to allow unrestricted trade among member nations. It has enhanced social and political cooperation that has bound the members into a single entity that follows common rules and regulations. The challenge has been financial crisis that has to some point affected the value of the euro. To some extent terrorism has also threatened the existence of EU. The other challenge is the immigration that is of great concern. 4.1.1 I have the attributes of being an entrepreneur. I believe I can be an entrepreneur because am ever a risk taker. I also have high inclination to innovation. Through my hard work spirit, I can be able to source for capital for my venture. I always think ahead of my competitors and have the ability to make decisions after critically evaluating the situation. Additionally, I also like reading business related articles as well as other articles so as to understand the needs and the current trends in the market. With all these, I think I have the ability to make a successful entrepreneur. 4.2.1 This is because of the nature of the business. There are less restrictions to adhere to compared to goods producing sector. In the service sector one is bound to do what they like with little startup costs. Small businesses in service-producing sector include retailers, wholesale business, and health care units, online stores, accounting services and advertising businesses. The small businesses found in the goods producing sector include construction, agriculture, and manufacturing. 4.3.1 The advantage of starting a business is that one creates a new customer base and penetrates the market differently. It also opens one up for exposure. However, the costs are usually high and it is risky. Buying a business is easier in that there will be ready market, active suppliers, employees and a known location. Predicting the future of the business is thus possible. It is also disadvantageous in that determination of the cost of the whole business may be an uphill task. A bad reputation risks being transferred to you as a new owner. Lastly, since the owner selling it knows the market, they are likely to start a similar business thus competition. Getting a franchise is advantageous in that the new business will be able to have ready market and less regulations. The business will utilize the resources and the brand name of the franchiser thus success. The disadvantage is that they are expensive. Much control is also held by the franchiser. There is a higher likelihood of being messed up by the franchiser. The business I would probably start is that which is from scratch. Despite the hard beginnings being hard, in the long run it would pick and I will be able to enjoy the returns on investment. Reference Foundation of Business, 1st edn., The Faculty of Business, Government & Law at The University of Canberra Read More