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ReadingsinInternationalBusinessCourseAimsDevelopabasicunderstandingofthefunctionsofinternationalbusinessIncreaseawarenessofinternationalbusinessorganizationsUnderstandhowbusinessesoperateinaglobaleconomyRecognizeglobalstrategiespursuedbybusinessReadingsinInternationalBusinessProvideyouwithastrongerunderstandingofbasiceconomicprinciplesRecognizehowvariousfactorscanaffectbusinessandbusinessdecisionsEnableyoutoapplyyourknowledgetomakesenseofeconomicdataIncreaseyourbusinessvocabularyReadingsinInternationalBusinessAdditionally….Teachingmethodsutilizedaredesignedto…EncourageyoutothinkcriticallyDevelopaprocessofconsideringinformationFormyourownideasandopinionsaboutinformationCommunicateanddefendyourideasandopinionsReadingsinInternationalBusinessCourseDeliveryLectures-instructorPowerPointpresentationsCasestudiesClassdiscussionReadingsinInternationalBusinessAlsoconsider…….CasestudiesTeamdiscussionandpresentationCasestudiesfromvarioussourcesbasedonreal-lifebusinessessuchasBoeing,DellandCocaColaCasestudiesfromvarioussourcessuchasBusinessweek,EconomistandTheNewYorkTimes(whenavailable)ReadingsinInternationalBusinessAssignmentsandGradingAttendanceandparticipation10%Summarizethetext10%Grouppresentation30%Individualfinal50%Totalavailablemarks100%ReadingsinInternationalBusinessLearner’sResponsibilityCometoclasspreparedreadrequiredportionofthetextbookandcasestudiesMakenotesofanydifficultiesandletmeknoweitherbyemailorsometimeduringclassYoudon’thavetodotheexercisesinthetextbookunlessrequiredtodosoActivelyparticipateinclassReadingsinInternationalBusinessPrepareforNextClassTextReadingswithBusinessIdeasChapter1–Wal-MartPages1-10Cases:Companies&strategiesReadingsinInternationalBusiness
Amanofmodestbeginnings,SamWaltonbuilttheWal-Martempireintothenumberoneretailerintheworldonasimple,butgroundbreakingrule,cutallexcesscostsandselllow.
Businessconcepts…aresimplywaysinwhichweunderstandbusinessBusinessconcepts:Massmarket&NichemarketOverheadCosts/FixedcostsVariablecost/directcostVocabularyEnlargingInflationDisinflationDepressionRecessionRecoveryMassmarketManybuyers&sellersLargemarketareaSmallindividualpurchaseManyproductstochoosefromi.e.unbrandedclothingNichemarketFewbuyers&sellersSmallmarketSmallindividualpurchaseLimitedproductstochoosefromi.e.VersacebrandMassmarketi.e.“unbranded”Nichemarketi.e.“Versace”Canyouthinksomeproductsorcompaniesthathavetheirownniche?DistributionstrategyEachdistributioncenteraverage121,000sq.mtr.State-of-the-artinventorycontrolandmaterialshandlingequipmentCanaccommodate150storesStoreslocatedinacircularpatternaroundthecenterDistributionStrategy…cont’dGoodsaredeliveredtothedistributioncentersandtruckedtothestoresdailyRecorderinformationissentdirectlytothedistributioncentreasitemsaresoldAllowsstoresanddistributioncenterstokeeptheoptimumquantitiesofinventoryon-handThissystemincreasesinventorycycletimes(turnover)MIKEGRAEN,Proctor&Gamble:Everysinglestore,everysingleday,everysingleitem:What'sselling,what'snotselling.SoP&Gknowswhattosupply,whentosupplyit.WhatisaMarketingStrategy?AstrategyindicatingthespecifictargetmarketsandthetypesofcompetitiveadvantagesthataretobedevelopedandexploitedinordertosatisfythatspecifictargetmarketMarketingStrategies:EverydaylowpriceCultivatedareputationforlowpricesLimited“sale”prices__usuallyseasonalpromosMassmarketingstrategiesAdvertisingusesmassmarketmedia-print&TV
OverheadCostsGeneralcostsofoperatingabusinessIncludepropertytaxes,insurance,utilitiesNotdirectlyassociatedwithdevelopingaproductorprovidingaserviceAllcostsotherthandirectlaborandmaterialCoststhatdon’tchangeoverthebusinesscycleDonotchangewithquantityofproductorserviceproducedi.e.insurance,mortgagepaymentsofficerent&cleaningsuppliesVariableCoststhatchangewiththequantityofproductorserviceproducedi.e.,rawmaterials,electricitytooperatemachinery,productionlaborDirectlyassociatedwithortraceabletotheproductorservicebeingproducedi.e.,rawmaterials,laborapplicabletoproduction,electricitytorunmachineryOpportunitycostThetruecostofsomethingiswhatyougiveuptogetitInordertobuyonethingyoumustgiveuptheopportunitytobuyanotherThisiscalledtheopportunitycostYouhave5.00RMBGoodPrice(RMB)Gum0.50Soda1.00MovieTicket5.00
Therefore,ifyouspendmoneygoingtoamovieyouforgotheenjoymentofthegumorsodaorviceversaMoreOpportunityCostIndividualShouldIbuyarecordorarevisionbook?SchoolShouldwebuildamusicblockortenniscourts?BusinessShouldwecarryNikeorAdidas?CountryShouldweincreasepolicypayorpensions?InflationRiseinpricesandthereductioninvalueofmoneySustainedincreaseinthegeneralpricelevelFallinthepurchasingpowerofmoneyRateatwhichpricesareincreasing(expressedas%)Inflation…cont’dMeasuresthecostofafixedsetofgoodsrelativetothecostofthosesamegoodsinapreviousyearChangesinthepricesofthosegoodsapproximatechangesintheoveralllevelofpricespaidbyconsumersManycauses__mainlybyincreaseddemandandlaggingproductionCausesIncreaseddemandandlaggingproductionBusinessresponsetoincreasedcostsbyraisingpricesCostareincreasingi.e.,rawmaterials,laborMovetoprotectprofitsDisinflationDecreaseintherateofinflationPriceincreasesareslowingdownornotincreasingasfastForexample,InMarchtheinflationratewas3%andinApril2.5%Inthisexamplepricesarestillincreasing,however,atalowerrateorslowerpaceRecessionSlowingdownoftheeconomyindicatedby…PeoplebuyinglessDecreaseinfactoryproductionIncreaseinunemploymentSlumpinpersonalincomeUnhealthystockmarketUsuallydefinedastwoconsecutivequarters(quarterisaperiodof3months)ofnegativeeconomicgrowthSlow-downhastocontinueforatleastsixmonthstobeconsideredarecessiontheperiodfromatobistheperiodofrecession.Attimeatheeconomicactivityispeaking,andthereisatroughattimeb.Afterbtheeconomyisinarecoveryorexpansionstage.theGreatDepressioncontainedtwoperiodsofrecession.ThefirstbeganinAugustof1929(twomonthsbeforethestockmarketcrash)andendedinMarchof1933.Inthefirstrecessionthevalueofgoodsandservicesthattheeconomyproducedfellbyabout42%.Therecoveryinthefouryearsthatfollowedwasslowandnotcompletedbythetimethesecondrecessionbegan.Inthisrecessionlasting13monthsfromMay1937untilJune1938,outputfellby9%.DepressionSimilartoarecessionLonger,deeperandmoreseverethanarecessionCharacterizedby__lesseningoutputandinvestmentbybusiness__Increasingunemployment__Tighteningofcredit__Reducedamountsoftradeandcommerce__PricedeflationRecovery__AtimewhentheeconomyisexpandingafteraperiodofrecessionordepressionTypifiedby__Increasedbusinessproductionandinvestment__Increasedemployment__Fallinginterestrates__Increasedamountsoftradeandcommerce__LooseningofcreditConsiderthatovertimetheeconomyexperiencesmanyfluctuationsExperience
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