Applied Economics Issues

Question: Show evidence of understanding issues of definition and measurement when investigating unemployment. Demonstrate the ability to compare and contrast different theories of unemployment and critically analyse their attendant assumptions. Assess the relevance of these theories in understanding UK unemployment. Support the analysis with the appropriate time series data and other relevant statistics. Demonstrate reflective use of relevant literature and correct citation. Answer: NAIRU and the changes in the UK labour market since 2008 Non-accelerating inflation rate of unemployment (NAIRU) is the level of unemployment below which the rate of inflation rate rises. Milton Friedman proposed the concept of natural rate of unemployment. In order to prevent the increase in the inflation rate above a given target level, the monetary policy is generally implemented by the government under the assumption of NAIRU so that the minimum unemployment in the economy is allowed. The natural rate hypothesis was presented by Friedman deals with the structure of the labour market. The idea behind the hypothesis is that in labour market it is natural to have some amount of frictional unemployment and the classical unemployment. The frictional unemployment is the situation in which the workers are changing jobs and for a minimum period of time they are considered to be unemployed (Smith, 2011). The classical unemployment arises when the real wages are fixed above the market clearing level of minimum wage laws, trade unions or due to o ther issue with the different labour institutions. The natural rate hypothesis faced a lot of controversies regarding the fact that the natural rate of unemployment varies in many ways that can eventually cause repercussion in the labour market. The theory of the NAIRU states if the natural rate of unemployment is less than the actual rate of unemployment then the inflationary pressure will rise and vice versa. The labour market of the UK has been distorted for the past few months. It has been evident from the statistics that the Britain will not be able to achieve the full employment level and there will be huge creation of jobs. The population is increasing and so there is a rise in the number of workers and thereby the unemployment level will fall. Most of the economists are skeptical about this view. It had been a talked about topic about the agreement on the issue that the full employment concept is slimy in the 21st Century. Financial Times conducted a survey where 58% of the economists were of the view that the full employment level would not be attained n 2015 but they were quite optimistic about the creation of jobs in spite of the figure that states that the unemployment rate is just 0.2 percentage points from the estimated value in the 2005 which was about 73.2 per cent (Stam and Long, 2010). In this scenario a specialized labour market consultant, John Philpott expected that there will be a decline of the unemployment rate from 6 per cent to 5.2 per cent. There would be taciturn wage pressures that would decrease the joblessness rate to fall below the 5 per cent before the government is risked at the 2 per cent inflation target. Here comes the theory of NAIRU but it is still unclear. There are several instances like the flexibility in the labour market, the cumulative impact of the welfare reforms, inadequacies in pension and the financial pressures which caused contraction n the wage along with the high debt of the households have boosted the supply of labour but if these trends continue then there is a chance that the Bank might need to revise the assessment of NAIRU to be low (Batini, 2005). A section of the economists were of the view that the underemployment will be eliminated before there is pressure on the wages. The rest of the respondents which is about 42% of the economists had clearly opinionated in the survey that the signs of increasing wages will pave the path of attaining the level of full employment and would hit the milestone in the year 2015 in the UK. It has been debated several times on the definition of full employment but in vain. George Osborne had undertaken the objective to define the concept of full employment as the economic aim. The unemployment rate was estimated to be at 7.4 per cent in October 2013 and in October 2014 the rate was 6 per cent. If this slow rate of decline of the unemployment rate grows there are chances that the unemployment rate might reach the level of 5 per cent in the end of the year 2015. In the year 2005 the unemployment rate fell to 4.75 per cent which was below the NAIRU which was about 5per cent. This would enable the economy to reach the level of full employment by the next year. But there remains some gap between the theory and practice where the unemployment rate might be below 5 per cent but about 1.65 million people will still remain unemployed (BBC News, 2015). Recent data reveals that the current rate of unemployment in the UK fell to the lowest level since 2008 which is about 5.6 per cent. According to the labour market figures the earnings growth has slowed down. About more than 31 million of the people in the UK are still unemployed. The labour market recovery in the UK can be attributed to the part-time jobs and self employment but the data of the Office for National Statistics showed that there will be substantial jobs creation of full time type and this will improve the job security issues in the UK. For the usual estimation the unemployment rate is around and about the NAIRU of the British economy. The question here arises on the degree of low level of unemployment without the taking off of the inflation rate. One of the characteristic of inflation is driving up the real wages of the workers. When on one side the real wages are welcomed by the workers but the inflation rate is generally avoided by them. So it can be the case that th e unemployment rate could be around and about the NAIRU but not fall below it so that the real wage rises but the inflation rate must not change. The economists are of the view that the NAIRU cannot be directly observed but it can be estimated for the past. The determination of the NAIRU depends on the labour market, the flexible the market is, the lower is the NAIRU rate. Most of the economists are of the view that since the labour market is flexible, the NAIRU will be fall. The unemployment rate in the UK over the years is depicted in the chart below: (Tradingeconomics.com, 2015) The unemployment rate in the UK remained low and unchanged at 5.5 per cent for the three months in 2015 till April which is in accordance with the market expectation. Since the global financial crisis the employment rate has been rising and so as seen from the chart the unemployment rate has decreased over the years and also the wages posted high gains. There were around 31.05 million people who were working. As the employment rose, so did the wage including the bonuses increase 2.7 per cent (Melliss and Webb, 1997). The unemployment rate has declined which can be evident from the decline in the number of individuals who were claiming unemployment benefits. In the current policy debate of the UK, there still remains the unemployment gap in the UK labour market. this gap is defined as the difference between the actual unemployment rate and the structural unemployment in other words NAIRU. This difference was sometimes referred to as cyclical unemployment. The next chart describes the actual unemployment, the NAIRU, and the difference. (Tradingeconomics.com, 2015) The importance of the unemployment estimates the measure of the stability of the economy with the inflation rate which is neither increasing nor decreasing. It can be said that if the economy is at stable inflation condition at a target of 2% then the unemployment rate can reach the NAIRU (Inman, 2015). On the other hand, NAIRU measures the unemployment level derived from the supply side like the workers skills, the labour market mechanism, competition in the market etc. and all other things which change in a relatively slow rate. The unemployment gap can be narrowed only when the government will implement macroeconomic policy. The fall in the unemployment rate has raised the wage rate which means that the economy of UK which is consumer led will eventually recover. The value of pound increased against the dollar. Economic analysts are of the view that the rise in the wages would cause the interest rate to increase. This would be implemented by the Bank of England. The governor of Ba nk of England, Mark Carney declined the growth in the UK and ordered to keep the productivity this is because the main impetus to the high wages is productivity (Knoema, 2015). Another theory of the unemployment is depicted by the concept of Phillips Curve. It was presented by William Phillips by analyzing the economic conditions in the UK between the 1861-1957 (Rusticelli, 2015). He stated the results of his analysis in the form of a relationship between the high inflation rate and low unemployment. In the 1960s, when the inflation rate doubled, the unemployment fell to record low levels. The unemployment rate is as low as 5.6% and there is a provision for the rate to reach the NAIRU (Hughes et al., 2015). The prolonged and dragged unemployment rate which is low would create a wage-price spiral. This can be explained in the following way (Yglesias, 2014). As there are scarce workers, the companies would demand more of the workers and create a situation of excess demand for labours. This situation of excess demand for labours would drive the price of the labours which is the wage to rise. Thus, the companies who are planning to start business would imply th at they have to pay more in order to recruit more. The higher pay indicates that there will be an overall rise in the price of the goods and services. The wage spiral starts now when the rise in the prices enables the workers to demand for higher wages again and then the companies again give in the higher wages to attract more workers as they are scarce. Then comes a situation which causes the inflation to go out of control. Thus, the labours are higher more and more at higher wages which causes the unemployment rate to fall and thereby it can be detected that the inflation rate has risen substantially (Claar, 2006). This is explains the concept of Phillips curve. The wage-price spiral is not desirable within the economy but there are certain reasons behind the occurrence of the spiral within the economy. The first reason is the fluctuations in the NAIRU due to demographic factors, technological advancements and greater openness to trade. Another problem is in the interpretation of NAIRU in which the predictions of the rate is incorrect. The inflation rate in the UK is quite Low: (Tradingeconomics.com, 2015) Thus, the basic Phillips theory is not appropriate in the recent findings of the UK economy. With low inflation rate, the unemployment rate must be higher but there is a trade off in the theory. Also attaining NAIRU is difficult as the inflation rate is low and somewhat stabilized in the UK. The unemployment rate can reach the NAIRU when there is scarce worker and excess demand for labours which has the potentiality to increase the wage (Shaw, 2011). With the rise in the wages of the labours, the cost of the companies will be increased and this will eventually raise the price of the goods and services to cover up the increased cost. Thus, inflation rate will rise but this is not the case of the UK, the inflation rate is quite low in spite of the low level of unemployment rate. Thus, with low inflation rate, the wages will not increase tremendously and thus, the workers will be higher more at low wage. This implies that if the inflation rate is low then the unemployment rate will be h igh according to the theory of Phillips curve but in this case the unemployment rate in the UK is 5.6 per cent which is near to 5 per cent of NAIRU and the theory is not in compliance with the current situation of the UK economy (Worstall, 2015). Thus, it can be said that either the theory of NAIRU is irrelevant in the UK economy or in the long run there is a chance of increasing unemployment rate so that the economy would not reach the NAIRU (Cross and Lang, 2011). References Batini, N. (2005). Measuring the UK short-run NAIRU. Oxford Economic Papers, 58(1), pp.28-49. BBC News, (2015). UK unemployment falls to seven-year low - BBC News. [online] Available at: https://www.bbc.com/news/business-32719779 [Accessed 30 Jun. 2015]. Claar, V. (2006). Is the NAIRU more useful in forecasting inflation than the natural rate of unemployment?. Applied Economics, 38(18), pp.2179-2189. Cross, R. and Lang, D. (2011). The NAIRU: Still Not An Interesting Rate of Unemployment. EJEEP, 8(2), pp.317-340. Hughes, A., McMunn, A., Bartley, M. and Kumari, M. (2015). Elevated inflammatory biomarkers during unemployment: modification by age and country in the UK. Journal of Epidemiology Community Health, 69(7), pp.673-679. Inman, P. (2015). UK unemployment falls to 5.5% as wage growth rises above 2%. [online] the Guardian. Available at: https://www.theguardian.com/business/2015/may/13/uk-unemployment-falls-as-wage-growth-rises [Accessed 30 Jun. 2015]. Knoema, (2015). OECD Economic Outlook No 95 - May 2014 - knoema.com. [online] Available at: https://knoema.com/OECDEO95/oecd-economic-outlook-no-95-may-2014?tsId=1025180 [Accessed 30 Jun. 2015]. Melliss, C. and Webb, A. (1997). The United Kingdom NAIRU. OECD Economics Department Working Papers. Rusticelli, E. (2015). Rescuing the Phillips curve. OECD Journal: Economic Studies, 2014(1), pp.109-127. Shaw, J. (2011). Business Population Estimates for the UK and Regions à ¢Ã¢â€š ¬Ã‚  Introducing improved statistics on the UK enterprise population. Economic Labour Market Review, 5(4), pp.47-67. Smith, J. (2011). The Ins and Outs of UK Unemployment*. The Economic Journal, 121(552), pp.402-444. Stam, P. and Long, K. (2010). Explaining exits from unemployment in the UK, 200609. Economic Labour Market Review, 4(9), pp.37-49. Tradingeconomics.com, (2015). United Kingdom Inflation Rate | 1989-2015 | Data | Chart | Calendar. [online] Available at: https://www.tradingeconomics.com/united-kingdom/inflation-cpi [Accessed 30 Jun. 2015]. Tradingeconomics.com, (2015). United Kingdom Unemployment Rate | 1971-2015 | Data | Chart | Calendar. [online] Available at: https://www.tradingeconomics.com/united-kingdom/unemployment-rate [Accessed 30 Jun. 2015]. Worstall, T. (2015). The UK's Unemployment Rate, At 5.6%, Is Lower Than America's At 5.5%. [online] Forbes. Available at: https://www.forbes.com/sites/timworstall/2015/04/18/the-uks-unemployment-rate-at-5-6-is-lower-than-americas-at-5-5/ [Accessed 30 Jun. 2015]. Yglesias, M. (2014). The NAIRU, explained: why economists don't want unemployment to drop too low. [online] Vox. Available at: https://www.vox.com/2014/11/14/7027823/nairu-natural-rate-unemployment [Accessed 30 Jun. 2015].

Innovation and Sustainable Business Development for Disruptive

Question: Discuss about theInnovation and Sustainable Business Development for Disruptive. Answer: Commonwealth Bank is a multinational Australian Bank headquartered in Sydney. Along with Australia, Commonwealth Bank is situated in various other parts of the globe such as New Zealand, Asia, and United States and in United Kingdom. Initially, it was founded by Australian Government but later on it was fully privatised in 1996 on listed on Australian Stock Exchange in 1991. Currently, bank has more than 1100 branches along with 51,800 employees across worldwide locations (Commonwealth bank, 2018). Commonwealth Bank is one of the largest companies in terms of revenues in global banking industry. Success and growth of an organization is dependent over its business model, business ethics and the strategies adopted to match up with the latest trends of market, to fulfil its customers needs, as well as to build an effective image amongst the competitive business environment. In this business essay, business model canvas of Commonwealth Bank will be discussed. Along with the business mode l, disruption and innovation will also be discussed in relation with the analysis of threats and opportunities of utilisation of smart-connected devices will also be covered under this business essay. This essay will help to determine the effectiveness of business model and smart-connected devices in relation with the Commonwealth Bank. Business model and disruption In order to gain success and growth for a longer period of time, organizations are required to adopt appropriate business model and disruptive techniques. Both these terms plays vital role in an organizational life-cycle. Business model describes the procedure of how an organization delivers, creates, and captures the value in correlation with the social, economic, cultural and in other contexts. Construction of business model is a crucial segment of business strategies (Osterwalder Pigneur, 2010). Disruptive innovation is used in the businesses to form new markets and value network and disrupts existing markets and value networks in order to enhance the productivity and efficiency. All innovations are not disruptive but all disruptions are tending to be innovations. For example: when automobiles were initially introduced in the market, it did not disrupt the market of horse-down vehicles. But when mobile phones were introduced in the market, it disrupted the whole market of other medium of communication such as landline phones, etc. It is known as disruptive innovation (Porter Heppelmann, 2014). Business model canvas framework is introduced by Osterwalder, et al. (2011) in order to combine all the components of a business together. This framework acts as the vital strategy included in the strategic management which is mainly used for developing business models. This framework includes all crucial elements of business such as products description, value propositions, resources, customers and other required resources (Osterwalder, et. al., 2011). Another aim of the business model is to perform well and in an effective manner in dynamic business conditions. All the functionalities are managed in the most appropriate manner which is required to obtain expected outcomes. Along with this, business model also helps the organization to make optimum utilisation of the available resources with the objective of delivering value to its targeted demographics (Porter Heppelmann, 2015). Along with the business model canvas framework for building the effective and result oriented business model, disruptive innovation model has also been adopted by the companies nowadays with the objective of uplifting the market image along with gaining competitive advantage. Adaptation of disruptive innovation leads to generate positive outcomes and develops unique value dimensions to serve the potential customers in the most appropriate manner (Guttentag, 2015). Some of them value dimensions served to the customers are simplicity, reduced prices; enhance quality, convenience, etc. Disruptive innovation brings unique ways for the organizations to move towards success, growth and other variables which are necessary to attain competitive advantage in the target market. In relation with the disruptive innovation technology, smart-connected devices are also growing rapidly in the market. These devices are assisting the companies to move towards automation from manual work procedure. Apa rt from this, smart-connected devices reduce chance of men-made errors and other glitches which could reduce the efficiency of an organization. With the help of disruptive technology, organizations are using smart-connected devices in their operations with the objective of enhancing the efficiency and productivity of the organization (Christensen, et. al., 2011). Software, sensors, and other technological devices which ease the organizational functionality and increase the efficiency of organization are known as smart-connected devices. Technologies help the organization to make their operation effective and quick and the same goes with smart-connected devices. These devices form a way between the customers and organization in order to share information, raising a query, etc. The data collected from these products can be then analysed to inform decision-making, enable operational efficiencies and continuously improve the performance of the product (Chesbrough, 2010). Numerous products and services are being delivered by the Commonwealth Bank to its customers. Services such as financial services, investment schemes, insurance plans, saving, current and other types of bank accounts, broking services, retirement and maturity schemes, etc. are provided by Commonwealth Bank. Major reason of organizational success and expansion in various parts of the globe is adaptation of trending techniques and effective business model (King Baatartogtokh, 2015). Apart from this, Commonwealth Banks success could also be measured by the utilisation of smart-connected devices in their operations. Certain disruptive innovations made by the team of Commonwealth Bank are smart machines, Block-chains, Internet of Things, big data and smart-chipped cards. The smart-chipped cards have unique features and provide various advantages to its users. Generally, debit cards are being used for transacting and shopping purposes but debit cards issued by Commonwealth Bank are less w ith unique safety features. These safety features saves customers of bank from fraudulent activities as well as in the scenarios of card lost, it could be deactivated easily by a mobile application only. These are certain crucial innovations made by Commonwealth bank to enhance its effectiveness (Demil Lecocq, 2010). It has been observed that smart-connected devices bring various opportunities and threats for the organization. In relation with the adaptation of smart-connected devices, Commonwealth bank has introduced smart machine in their operations which enables the bank to provide unique financial services to its potential customers across the globe. The smart-machine is introduced with the help of sensors and advanced technology which enables the bank to manage and record the information regarding transactions made by its customers (Fadlullah, et. al., 2011). This machine has the capability to manage all the branches of banks interlinked with each other. Along with these services and facilities, Commonwealth Bank also provide online banking, online account opening, and other crucial services to its customers. With the help of these technology and advancements, organization has attained growth related attributes along with an impressive growth rate (Christensen, Raynor McDonald, 2016). Along with the opportunities to grow and prosper, there are various challenges and threats linked with the usage of smart-connected devices. One of the biggest challenges is dependency over technology and automation. Due to this, manual processing of functionalities is getting declined whereas users also face certain challenges such as losing the passwords for online banking. Apart from this, old aged people are also facing challenges in order to make use these technologies (Sun, et. al., 2016). In relevance with these challenges, it is required for the management of bank to provide adequate information of using these technologies along with the procedure of recovering the passwords. The major threat of smart-connected devices is the fraudulent activities because card lost; leakage of confidential credentials of customers could lead to big loss for the bank as well as for its users. Thus, it has been recommended to the bank and its users to keep their confidential credentials in safe and secure place through which these technologies and advanced could be utilised in an optimum manner (Yu Hang, 2010). Key Partners Firms issuing credit cards Subsidiary companies in other parts of the globe Local clients in other countries Stakeholders Security providing firms Vault services providing firms Key Activities Retail banking Investment schemes Credit card facility Insurance plans Risk evaluation techniques Value Proposition Quality financial services Reliable investment schemes Customer-centric retail banking services Brand equity in banking sector, Australia Practical growth Provides services to local and small banks and financial institutions Customer Relationships Renders quality services to its customers (Harwood, et. al., 2014). Practice various functionalities in relevance with making customer relations strong Customer centric approach Takes customer feedbacks on priority Brand image Customer Segments All customer segments Business organization, government, and all people Credit card users Key Resources Wide and effective distribution network Operates from more than 1100 branches worldwide Brand image of being one of the largest banks in terms of revenues, service quality, etc. across the globe ATM Effective men-power Skilled technicians Channels Own communication channels Official website Other social media platforms Cost Structure Salaries to employees Remuneration to financial experts Administrative costs Other financial costs Maintenance, security, interest, etc. fees. Rewards and returns Revenue Streams Interest on loans Interest on credit card payments Fees for overdraft facility Debit card fees Other services fees and fees on non-maintenance of minimum balance in account. Above discussed business canvas model is adopted by Commonwealth Bank, Australia. This model has made the organization effective enough to achieve desired goals and objectives. Along with this, it has been observed that for effective management of business practices, appropriate model, structure or a framework is required. With the help of this model, organizational capabilities could also be compared with its achievements and gaps recognised could also be fulfilled in an effective and appropriate manner. References Chesbrough, H., 2010. Business model innovation: opportunities and barriers.Long range planning,43(2-3), pp.354-363. Christensen, C. M., Horn, M. B., Caldera, L., Soares, L. (2011). Disrupting College: How Disruptive Innovation Can Deliver Quality and Affordability to Postsecondary Education.Innosight Institute. Christensen, C. M., Raynor, M. E., McDonald, R. (2016). What is disruptive Innovation.The Encyclopedia of Human-Computer Interaction,2. Commonwealth Bank. (2018). Harwood, J., Dooley, J. J., Scott, A. J., Joiner, R. (2014). Constantly connectedThe effects of smart-devices on mental health.Computers in Human Behavior,34, 267-272.accessed from: https://www.commbank.com.au/about-us.html?ei=CB-footer_about-commbank [online]. [21st April 2018]. Demil, B. and Lecocq, X., 2010. Business model evolution: in search of dynamic consistency.Long range planning,43(2-3), pp.227-246. Fadlullah, Z. M., Fouda, M. M., Kato, N., Takeuchi, A., Iwasaki, N., Nozaki, Y. (2011). Toward intelligent machine-to-machine communications in smart grid.IEEE Communications Magazine,49(4). Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector.Current issues in Tourism,18(12), 1192-1217. Harwood, J., Dooley, J. J., Scott, A. J., Joiner, R. (2014). Constantly connectedThe effects of smart-devices on mental health.Computers in Human Behavior,34, 267-272. King, A. A., Baatartogtokh, B. (2015). How useful is the theory of disruptive innovation?.MIT Sloan Management Review,57(1), 77. Osterwalder, A., Pigneur, Y. (2010).Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley Sons. Osterwalder, A., Pigneur, Y., Oliveira, M. A. Y., Ferreira, J. J. P. (2011). Business Model Generation: A handbook for visionaries, game changers and challengers.African journal of business management,5(7), 8918-8932. Porter, M. E., Heppelmann, J. E. (2014). How smart, connected products are transforming competition.Harvard Business Review,92(11), 64-88. Porter, M. E., Heppelmann, J. E. (2015). How smart, connected products are transforming companies.Harvard Business Review,93(10), 96-114. Sun, Y., Song, H., Jara, A. J., Bie, R. (2016). Internet of things and big data analytics for smart and connected communities.IEEE Access,4, 766-773. Yu, D., Hang, C. C. (2010). A reflective review of disruptive innovation theory.International journal of management reviews,12(4), 435-452.

Sample Essay of Literary Analysis

Sample Essay of Literary AnalysisThe Sample Essay of Literary Analysis is a great way to be an interesting writer. It can be a great vehicle for an aspiring essayist to learn and grow as a writer. When I write an essay, I tend to enjoy researching, analyzing, writing, and rewriting.I first remember reading an essay of mine, which was as hard as I had expected to become as a student. It did not provide me with a formal introduction to my writing abilities or a chance to tell me what I did wrong. But at the end of the essay, I learned a lot about writing in general and how to move forward.The purpose of my writing, when I write a personal essay, is to communicate with my reader. I like to share what I have learned about how to handle my family, love life, academic pursuits, and more.As an individual writer, I find it is best to make my essay a stand-alone story, which will separate it from its main subject. In my case, the essay became much longer than I expected it to be, but it broug ht me a great deal of pleasure in knowing that I was able to write about some of the things I thought were important.To make it a stand-alone piece, I searched for one essay of mine online. I found it online, but it was a very old essay. The writers site I found was hard to navigate and most of the topics were not covered adequately.In order to use my writing to its full advantage, I needed to write something different. So I decided to create a new essay to replace the old one. I also made it all new and unique. I thought about what I wanted to say, and then I wrote it all down.Then I went back to the old essay and rewrote it. There were a lot of grammatical and spelling errors, but I had made my first draft much better than the first one. I knew this essay was working well, and I had no trouble finishing it. I was so proud of myself for making such a significant accomplishment.

Strategic Management and Competitiveness of Dell C Essays - Business

Strategic Management and Competitiveness of Dell Company Name Intuit ion Strategic Management and Competitiveness of Dell Company Intro duction Dell is an American based global public corporation that design, make, and engages in a wide range of customers. Besides, it offers services and goods in computing gadgets as notebooks, tablets, and desktop PCs. Taking on its appeal to global markets, globalization, and technological changes have causes the operational and strategic managements in the business domains. As a result, globalization has assisted in retention of stiff competition and in attracting customers effectively hence causes the company in changing 'the strategies to capture the entire globe. It has also helped in the expansion of operation globally to reduce stiff competition among its competitors. Globalization has enabled Dell to operate worldwide enabling it to embrace different financial, sociocultural, political, and legal environmental changes hence overcomes business policy and structural system. Globalization has resulted in feeling Dell presence in other markets too hence retaining a large market sh are and opportunities everywhere. Due to globalization, Dell has developed internet based supply chain model that enable it to have direct sales to her clients. Besides, the model helps in making build-to-order, co-ordinate suppliers, and communication tactics hence one on one interaction with suppliers, customers, and employees. The use of internet has really helped in changing technological impact. The global era has also caused consumer buying behaviors changes in the industry and due to this customer have preferences for an effective and competent support system. Generally, globalization has resulted in the creation of several Dell outlets, change of strategies, and operational method in the entire company . Industrial Organization Model The industry uses Industrial Organization (I/O) model and Resource-based (RB) Model whereby the I/O model of above average returns explains the strategic choices of a firm and how it is influenced by external environment. It encompasses the general analysis of the industry and competitive environment, which causes the business to operate strategically efficient. The analysis of entire environment consists of investigating demographic, political, economic, socio-culture, and legal factors that would affect Dell knowledge in the creation of opportunities and threats for its operations. This analysis also would assist in creating awareness of new entrants, rivalry level, bargaining power, and other related products for consumers and suppliers. In analyzing competitors, the company will check objectives, assumptions, strategies, and capabilities of its main competitors like Nokia, Tecno, and Acer among others. The I/O model also will assist in curbing threats, boost opportuniti es, and achieve high returns on the business. On the other hand, RB model provides an explanation of an internal environment and making them aware of competitiveness and capabilities of the firm. Besides, it enables Dell to have information on weaknesses and strength in investigating the main in competencies. The information on the model helps Dell formulates strategies to limit weaknesses, empower strength, and increase turnover of the business. This model in itself is a source of information to manage resources and capabilities dynamically and earn above-average returns within computing device industry. To generalize, the combination of both models helps the firm to determine weaknesses, strengths hence achieving a high return for less effort. The Vision Mission Statements These critically provide information necessary to formulate objectives and the purposes of the business in an organization. Dell vision and mission state: "Our vision is not just to provide the best customer experience in our industry, but to be counted among the best in any business." (Dell) "Our mission is to be the most successful IT systems company in the world by delivering the best customer experience in all markets we serve." As it reads, it helps in choosing relevant strategies. To remain the best in the industry, Dell has developed a culture to continuously improve on diversity and remain competent in workforce worldwide. Through this, Dell shows uniqueness in service provision to customers and expresses global appearance hence achieving great sales returns. Besides, the mission of the company has provided integrity and good leadership for personal accountability. The mission statement has also achieved a lot in e-commerce and getting huge market shares of the fi rm. The mission also assists in cost minimization and profit maximization of the business. Through supply

A Description of Life in the Treches During WWll essays

A Description of Life in the Treches During WWll essays A Description of Life in the German Trenches during WWI In an age driven by technology, the face of war has changed so dramatically that wars can now be fought on digital battle fields from ships that volley missiles capable of devastating entire armies at distances measured in hundreds of miles. It is far cry from life experienced by soldiers in WWI whose only protection from the nearby enemy lines merely feet away were miles of cold and shallow trenches that zig zagged their way across Western Europe. Carl Zuckmayer, a writer and WWI veteran, describes his experiences in the trenches on the Western front of the war and the effect it had on his life and political views during post war years in his autobiography entitled, A Part of Myself. Born in 1896 and only seventeen at the outbreak of war in 1914, Zuckmayer was a gifted poet whose leftist political views had a major influence on his initial disapproval of the war. I will never kill anyone. I would rather go to prison (Zuckmayer 141) was his response when asked about whether or not he would join the army. However, upon returning home from his summer vacation, he was quickly swept up in the patriotic euphoria of the German people were. He writes I remember precisely what I was feeling...something was entering me-not like an infection, but rather like some form of radiation, like a completely novel, tingling current, as if I had put my hand on the grip of an electrified machine (142). This renewed sense of national pride was fueled by the mass belief that a war with France and Russia would be a quick and victorious one. As with the rest of the German people at that time, he would comes to find out in the following years that this is would not the case. However, it sparked enough of a fire inside him that in August of 1914, along with his schoolmates, he dismissed his leftist views and enlisted in the German Army. He states...

Finance academic activity Essay Example | Topics and Well Written Essays - 750 words

Finance academic activity - Essay Example prices of the stocks, there should be also be subsequent changes in the earnings of the company to mark this change in the dividend payout (Chen, 2005). There should also be a revision in the expectations of the market in regards to future earnings that is in the same direction as the change in anticipated dividends. This can be observed in companies across the globe especially in developed markets such as Europe and North America. In this case the earnings of the company can be termed as the average cumulative abnormal return and there will be various samples that will be used for this test. There was a change in the performance in the company after the announcement of the changes in the dividend policy. It was clear that companies that reported an anticipated increase in their dividends reported a return a positive change in their earnings for that year. On the other hand, companies that reported a decrease in their dividends reported lower earnings in that particular year. This can be due to the fact that there was a motivation for the company stakeholders to increase the business operations of the firm as they believe that they are the ones who will benefit from this. Dividend policy may have a predictive power on the future of businesses and these changes have to be closely monitored. Using the stated methods, there has been no relationship that has been established between the dividends and changes in the earnings. Changes in the dividends were not found to have any information about the future one and two year earnings growth.This was tested in a number of samples to try and see if there was a relationship in the dividends and the first and second year earnings. For predictions of the earning in the 1st year, the coefficients in the changes of the dividend were only significant at the 10% level in only about 10% of the sample population. In the earnings of the second year, there was only a slight improvement in the significant level of the coefficients

The role of uncertainty in the transmission of monetary policy effects Essay - 1

The role of uncertainty in the transmission of monetary policy effects on bank lending - Essay Example It is also shown that the weak, small & intermediate-sized banks tend to lend more than their stronger counterparts, during the time of higher uncertainty (Gatev and Strahan, 2003, pp.867-892). Apart from what is mentioned under bank lending channel, according to Bernanke and Gertler, it also examines the following: a key assumption is that bank is not able to easily replace lost deposits with the other source of funds, such as new equity issue or certificate of deposits (CDs). For several reasons, this assumption was correct for the United States before 1980. First reason is that, Federal Reserve imposed a â€Å"Regulation Q†, which placed a ceiling on the interest rates that bank could pay. Bank does not have any means of competing for funds and therefore suffered sharp reduction in deposits, when the interest rates of open market went above the ceiling. Second, reserve requirement were more difficult at that time than it is today and thirdly, markets for bank liabilities were less developed and less liquid than they are now (Bernanke and Gertler, 1995, pp.40-41). The statement in page number 5 that the reduction in observed lending is not due to a reduction in loan demand, but due to the reduction in loan supply is false. Rather, it reflects that the reduction in the quantity of loan is due to the decrease in loan demand and the reduction in loan supply (Kashyap and et al, 1993, p.79). One more fact is not mentioned: it takes into account the IS-LM model which states that there are only two financial assets, i.e. money and bonds and when the conditions where all distinctions between securities and bank loan can be ignored are not satisfied, then there are three assets, i.e. money, bank loans and securities. This model also states that monetary policy always operates through liability side of banks’ balance sheet, but the