Applied Channel Systems - Wal-Mart - Assignment Example

Applied Channel Systems Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: In the Wal-Mart example, the argument is that in short run, deviations from equity principle can occur due to competitive reasons. What might make this statement untrue in the long run? The investment portfolio is considered to be market neutral if it aims to find to fully avoid some of the risks of market, mostly hedging (Bolton & Ockenfels 2009, p. 445). For us to evaluate the market neutrality, it becomes necessary to specify the risks that need to be avoided. A good example is the attempt to fully curb the fluctuation in price of the stock. A good look at the market would show no relation with the unwanted source of risk. This is through the assumption that the market is neutral which in most cases a very rare situation is. Wal-Mart argues that in the short run, the deviation of the Equity principle can occur because of competitive reasons. However in long run this is not the case. According to the principle of equity, the poverty eradication is one of the major international elements that are used to sustain development (Amico & King 201, p. 653). This kind of principle have always been mentioned in the consistent manner in the international instruments in the development field, economic, human rights and the law concerning environment. It has been observed that due to competition, various manifestations that includes lack of income and the productive resources that are sufficient to ensure and sustain the livelihoods; hunger and malnutrition and other sources of poor quality of life occurs as a result of the deviation from the equity principles. At the root of development that is sustainable, there is the belief that the resources of the earth belongs to all the generations (Alfric 2004, p.36). As a result, it is argued that the present generation would be having no right to interfere exhaustively and irreversibly in the human relations with the natural world so as to deprive the future generations, of the environmental, social and the economic opportunities of the well-being (Ahmed, Hassan & Pit 2010, p. 96). Conflicts that arise due to the deviation from the equity principles are short terms meaning that, the deviations results due to problems that arise in different as everyone tries to compete for the resources. However, the generation rules would always solve issues and ensure that they are in the right track. For example, no continent or country has exclusive rights to the natural resources of the earth. The resources have always been handed over from the past generations and as a result, the current generation does not have any obligation of transmitting them into goods or even to enhance the conditions of posterity. The intergeneration equity has been employed in the current international instruments and call to states so that they ensure that there is a just utilization and the allocation of the resources between the past generation, the current generation and the future generation. This requires the attainment of a balance between meeting the demands of the consumer of the existing societies and also ensuring that there are adequate resources that are available that can accommodate the needs for the future generations. However, due to the short term problems that the human beings are experience, they a times finds themselves overexploiting the current resources in one way or the other (Alfric 2004, p. 35). This is only a short period of time before the concerned authorities realize what they are doing and as a result instill measures to not only correct the damages that have been caused, but also to ensure that such a thing does not happen again. Internationally, the principle of equity and the eradication of poverty have been found to contribute to development and eradicate poverty. Poverty eradication has been reflected as the commitment as the parts of the States of respecting, protecting and fulfilling the human rights more so on economic, cultural and social rights. In the business development, both binding and non-binding legal instruments are in place to ensure that every person has the capacity he or she needs to do business. But there are circumstances that arise, often due to unfairness of the certain people or institutions that deviate from this freedom. As a result there are conflicts in the business environment which happens for a period of time before the matter is solved through reconciliation or courts. The solution that comes into place usually promotes non lack of deviation from the equity principle. A distributor should stock as many brands as possible for each product category demanded by its clients. Debate this statement. A distributor should stock as many brands as possible for each product demanded. Whenever a distributer stocks an item he or she is making a commitment that the product shall always be available in reasonable quantity for immediate delivery or shipment to the customers (Richard 2002 p. 480). The distributors should always ensure that they have two things, large stock and large variety of brand. The stock is the material thing that is intended to be in the warehouse; therefore, one should be able to separate stock from the stuff in each of the distributors’ warehouse. Distributors understand that the products they stock suggest sorting the items that are in the warehouse based on each products annual hit. Forward thinking distributors aim to increase the efficiency, profitability and the customer service with the smart inventory management strategies that are based on tried and proven methods of the best practice (Amico & King 2010, p.660). Effective inventory management enables the distributors to meet and exceed the expectation of the customer of the product availability and the amount of each item that will enable the company to maximize its net profit yet minimize the total inventory investment. Use of effective inventory management comes as a result of outstanding the inventory control and the inventory management. Knowledge of the scale of the products is important so that you are able to stock all the varieties of the brand associated with that product. At the same time you will have the knowledge of what products are out there and how much you have of each item. Effective inventory comes in place to help the distributer to know the exact amount of each piece of product located in the warehouse, ensure that the entire inventory remains salable or in usable conditions and also store the products to minimize the cost of filling the orders by the customer. Stocking many brands also helps in advertisement (Schreibfeder 2002, p. 346). A customer who sees a variety of products in the store will be sure that he or she will find the exact brand from that distributor. In this generation every individual has his or her own taste or fashion that differs from one another. There are also situations that demand the precise kind of fashion or brand in this era of competition. Where the distributor has stocked the variety of these brands, customers will know the exact place where to choose from variety. Moreover, since different people have different tastes, there shall be more customers streaming where the distributor has variety that will translate to larger sale than the distributors who have few variety in their stocks. In some situations large variety of brand in stocks may have a negative impact on the business. To the customer, there is need for production of high quality items modern to the current society systems. As a result, there are set standards in each field to ensure that the customers get the best quality of the brand or item purchased. With large stocks, there are some brands which would be moving at a slower rate than others. Such brands may even stay for exceedingly long period of time. If the brand we are dealing with here is perishable good, then chances are the item might lose its quality with time. To always ensure the customer gets good quality, a quality stock management system is put in place of replacing the brands that have stayed on stock for a given period of time. This would add more cost to the distributer. The case becomes more complicated if a good number of brands are involved which may be coming from different companies (Schreibfeder 2000, p.346). Some regulations may also be in place that pushes the market to ensure that only fresh brands and items are in stock. It is therefore important that the distributors stock as many brands as possible to ensure that they fully satisfy the customer requirements. However, they should be ready to ensure that they employ quality stock management systems that ensure the product is always good for the customer. References Amico T, & King, B 2010, ‘Flow and stock effect of large-scale treasury purchases,’ Finance and Economics Discussion Series Divisions of Research and Monitory Affairs, Vol. 21, no. 6, pp. 645-665. Ahmed G, Hassan, M & Pit, 2010, W ‘Access to and Equity Guide,’ Registered training Organisations, Vol. 2, no. 2, pp. 96-120. Bolton E & Ockenfels, T 2009, ‘A Theory of Equity, Reciprocity and Completion, World Evolution , Vol. 26, no. 4/5, pp. 439-452. Schreibfeder, J 2002, ‘Developing an Approved Stock list for each location, First Steps to Achieving Effective Inventory Control, Vol. 19, no. 4, pp. 342-347. Alfric, J 2004, ‘Equity principles, Role of Government and Legal Agencies in Ensuring Good Governance, Vol. 1, no. 4, pp. 34-37. Richard, J 2002, ‘Advanced goods distribution systems’, Marketing protocols, Vol. 29, no. 6, pp. 412-497. Read More