manajerial economic and business strategy Essay Example

manajerial economic and business strategy Paper Managerial Economics Business Strategy Chapter 6 The Organization of the Firm Michael R. Baye, Managerial Economics and Business Strategy, 5e. Hakan TASCI McGraw-Hill/lrwin Elon University rights reserved. Departmentby 2006 by The McGraw-Hill Companies, All rights reserved. Copyright OCopyright The McGraw-Hill Companies, Inc. lnc. All Spring 2007 2006 of Economics Overview l. Methods of Procuring Inputs Spot Exchange Contracts Vertical Integration II. Transaction Costs Specialized Investments Ill. Optimal Procurement Input V. Principal-Agent Problem Owners-Managers Managers-workers Elon University Copyright Economics Department Ofc 2006 by The McGraw-Hill Companies, Inc. All Spring 2007 Managers Role Procure inputs in the least cost manner, like point B. Provide incentives for workers to put forth effort. Failure to accomplish this results in a point like A. Achieving points like B managers must Use all inputs efficiently. costly method. Costs $100 10 Methods of Procuring Inputs Spot Exchange When the buyer and seller of an input meet, exchange, and then go their separate ways. No official contracts, no long term relation Contracts A legal document that creates an extended relationship between a buyer and a seller. Ex: Car Rental Companies and Auto maintenance Vertical Integration When a firm shuns other suppliers and chooses to produce an input internally. Set up your own service in the rental company. No specialization. Specialization, avoids contracting costs, avoids costs of vertical integration. Possible hold-up problem. Contracting Specialization, reduces opportunism, avoids skimping on specialized investments. Costly in complex environments. Reduces opportunism, avoids contracting costs. We will write a custom essay sample on manajerial economic and business strategy specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on manajerial economic and business strategy specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on manajerial economic and business strategy specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Lost specialization and may increase organizational costs. Transaction Costs Costs of acquiring an input over and above the amount paid to the input supplier. Includes: Search costs. Negotiation costs. Other required investments or expenditures. Some transactions are general in nature while others are specific to a trading relationship. Investments made to allow two parties to exchange but has little or no value outside of the exchange Site specificity. Physical-asset specificity. Dedicated assets. Human capital. Lead to higher transaction costs Costly bargaining. Underinvestment. Opportunism and the hold-up problem. and Contract Length MC MBI Due to greater need for specialized investments MBO Longer Contract Contract Length Optimal Input Procurement Substantial specialized investments relative to contracting costs? Yes No Complex contracting environment relative to costs of integration? Vertical Integration The Principal-Agent Problem Occurs when the principal cannot observe the effort of the agent. Example: Shareholders (principal) cannot observe the effort of the manager (agent). Example: Manager (principal) cannot observe the effort of workers (agents). ? The Problem: Principal cannot determine whether a bad outcome was the result of the agents low effort or due to bad luck. Managers must recognize the existence of the principal-agent problem and devise plans to align the interests of workers with that of the firm. Shareholders must create plans to align the interest of the manager with those of the shareholders. Solving the Problem Between Owners and Managers Internal incentives Incentive contracts. Stock options, year-end bonuses. External incentives Personal reputation. Potential for takeover. Managers and Workers Profit sharing Revenue sharing Piece rates Time clocks and spot checks Conclusion The optimal method for acquiring inputs depends on the nature of the transactions costs and specialized nature of the inputs being procured. To overcome the principal-agent problem, principals must devise plans to align the Michael R. Baye, Managerial Economics and Business Strategy, 5e. Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Additional Review Bayes Text, pages 229-233 Question #23, 6, 8, 10, 11, 14, 16, 18 Chapter 3 Demonstration Problems 2, 3, 4, 5, 6 Concept Review Spot, Trade Off, Specialization, Reputation

Economics and Unemployment essays

Economics and Unemployment essays This research paper was written not only as a class project but also an informative way to give the reader an in depth learning experience of the recession in 2001. I will be discussing topics like the effects the 9/11 attacks had on the recession and categories of workers and last but not least regional differences. Lets analyze the rise in unemployment first. The Labor Department said new jobless claims fell to 427,000 for the week ended Nov. 17 - a week shortened by the Veterans Day holiday - from a revised 444,000 a in just a weeks time before. Economists surveyed by Briefing.com expected 452,000 new claims. That is way too much to overlook so Im sure that the government had their hands full during those two bad weeks. During the week of November 10 over 3.7 million dollars went to claiming workers benefits. Look at this graph to see how the unemployment curve kept rising: As one can see from the graph the unemployment skyrocketed to a crazy 5.4% by October. The effects of the 9/11 tragedy took their toll on our hearts and our fellow Americans. We can see how many ways it has affected us but we can only argue so much to see how it has greatly affected the unemployment rate. By October the unemployment rate was at 5.4%. Obviously we can see how and why people are losing their jobs. Stocks dropped, the value of each independent corporation or business depreciated and companies just cant afford the huge amounts of money that must go towards paying employees. Its a matter of business all the time. The three measures taken by businesses were: 1) Reduction of workers on full benefits (under lifetime employment, seniority-based salary and full retirement package). 2) Replacement of workers on full benefits with other more flexible workers (new workers recruited in mid-career, part-time workers, contracted workers, and temporary workers supplied by temporary staff placement agencies). ...

How to Earn an Online Degree by Examination

How to Earn an Online Degree by Examination Several websites have popped up recently claiming that students can earn a degree by taking tests or get their bachelors  degree in less than a year. Is the information theyre selling a scam? Not necessarily.It is true that experienced students and good test-takers may be able to earn legitimate online degrees quickly and primarily through test-taking. However, it isnt easy and its not always the most fulfilling way to experience college. This information isnt a secret and you shouldnt feel obliged to take out your credit card for details that are publicly available from the colleges themselves. Heres what you need to know: How Can I Earn a Degree by Examination? In order to test your way to a degree, you cant just sign up for any program. When planning your next steps, you will need to be particularly cautious to avoid diploma mills with unethical practices - even listing a diploma mill degree on your resume is a crime in some states. There are several regionally accredited online colleges that are competency-based and offer flexible ways for students to earn credit. By enrolling in one of these legitimate online colleges, you may be able to earn the majority of your credits by proving your knowledge through taking tests rather than completing coursework. Why Should I Earn a Degree by Examination? Testing out of college is probably a better choice for experienced adult learners rather than incoming freshmen. It might be right for you if you have a lot of knowledge but are being held back in your career due to the lack of a degree. If you are coming right out of high school, this course may be particularly challenging as the tests tend to be difficult and do require a substantial amount of studying for students that are new to a topic. What Are the Drawbacks? Earning an online degree by taking tests has some major drawbacks. In particular, students miss out on what some consider are the most important aspects of the college experience. When you take a test instead of a class, you miss out on interacting with a professor, networking with your peers, and learning as a part of a community. Additionally, the required tests are challenging and the unstructured nature of studying alone can lead many students to simply give up. In order to be successful with this approach, students need to be particularly driven and disciplined. What Kinds of Tests Can I Take? The tests that you take will depend on your colleges requirements. You may end up taking university tests monitored online, university tests monitored at a designated testing location (such as a local library), or external tests. External tests such as the College-Level Exam Program (CLEP) can help you bypass courses in specialized subjects such as U.S. History, Marketing, or College Algebra. These tests can be taken with proctored supervision at a variety of locations. What Kinds of Colleges Accept Test Scores? Keep in mind that many earn a degree fast and test out of college advertisements are scams. When choosing to earn a degree primarily through examination, it is essential that you enroll in a legitimate, accredited online college. The widest form of accreditation is regional accreditation. Accreditation from the Distance Education Training Council (DETC) is also gaining traction. Regionally accredited programs that are well-known for awarding credit by exam include: Thomas Edison State College, Excelsior College, Charter Oak State College, and Western Governors University. Are Degrees-By-Examination Considered Legitimate? If you choose an accredited online college, your degree should be considered legitimate by employers and other educational institutions. There should be no difference between the degree you earn through proving your knowledge through test taking and the degree another online student earns through coursework.

Analysis Of My Antonia Essay Example | Topics and Well Written Essays - 750 words

Analysis Of My Antonia - Essay Example But as the story progresses and he comes to understand the reality of the situation, he shows his appreciation for immigrants like Antonia by stating –‘One result of this family solidarity was that the foreign farmers in our county were the first to become prosperous". As Jim blossoms in his youth, he undergoes a lot of changes in his life especially the areas where his personal life is concerned. His experiences in the West are interwoven with his academic education which is what makes the story all the more interesting.Antonia to Jim is someone whom he respects and loves a lot. In fact, Jim’s memoir is titled ‘My Antonia’ and is dedicated to her, proving the depth of his admiration and love for her. His memoir is not just about the story of his childhood and his experiences but it focuses on Antonia and what she had meant to him. The beauty of this memoir lies in the ambiguity of love. Jim’s feelings and emotions towards Antonia are very stro ng and though he does admit his deep love for her, yet it does not explicitly advertise it. Jim takes pride in her strong physical appearance and her sexual appeal, but he is also very protective of her, from the other ‘creepy guys’ in the neighborhood. However, now and then he is filled with flashes of passion and this is evident when he tries to kiss her one night near the gate, while Antonia jokingly pushes him away. But, whatever his feelings were towards Antonia, it had a great impact on him for the rest of his life.... Jim takes pride in her strong physical appearance and her sexual appeal, but he is also very protective of her, from the other ‘creepy guys’ in the neighborhood. However, now and then he is filled with flashes of passion and this is evident when he tries to kiss her one night near the gate, while Antonia jokingly pushes him away. But, whatever his feelings were towards Antonia, it had a great impact on him for the rest of his life. The following lines testify Jim’s feelings for Antonia -"I'd have liked to have you for a sweetheart, or a wife, or my mother or my sister – anything that a woman can be to a man" (4.4.7).   Antonia’s influence over Jim helps to change his life. The impact is clearly evident when Jim states -"You influence my likes and dislikes, all my tastes, hundreds of times when I don't realize it. You really are a part of me" (4.4.7) Both Antonia and Jim have opposing characteristics. While Antonia is strong and decisive, Jim is mor e emotional, passive and indecisive. All the above points show that Antonia represents a part of his past which was simple, pure and innocent. Representing yet another part of his life which is his adolescence and adulthood is the character of Mr. Shimerda who was the father of Antonia, Marek, Ambrosch, and Yulka well. He was an intelligent and dignified gentleman who loved his life in Bohemia and hated his new life in America. Mr. Shimerda became heart broken because he could not adjust to the hard life on the farm. Jim took a great liking to Mr. Shimerda because he understood the sadness and exhaustion that he was experiencing by feeling alone in this world. Jim admired Mr. Shimerda and was

Oil prices and its effect on the global market Term Paper

Oil prices and its effect on the global market - Term Paper Example The developing countries are heavily dependent on oil exporting countries for their import of petroleum products. So if there is a rise in oil prices only the oil exporting countries benefit while bringing a destructive effect on the developing nations. What really affects the oil prices is the demand and supply of oil which we are going to look into detail later. The global market saw a recent surge in oil prices since the last two years with the most recent rate of today being $124 per barrel (forex.com). It was predicted that the production of crude oil must be increased by the oil producing countries to bring the prices down. The Arab oil exporters held a meeting in early 2011 in Cairo to discuss this issue but refused to increase oil production as they believe that the supply is sufficient in the market. The oil prices rose to $ 94.74 per barrel this year since October 2008 when oil prices were record breaking high. The forecasted trend is an increase in oil prices in the coming weeks touching up to $ 100 a barrel. After the financial crisis of 2008, OPEC or Oil Producing and Exporting Countries decreased their level of output in order to deliberately create a shortage so that prices go up. In 2010, the demand for oil increased and is expected to increase more in 2011. OPEC must release some of their stock and raise the supply of oil or else the prices can rise to unprecedented level of $ 150 per barrel. These unfavorable conditions can lead the world into another crisis. Body: The trading of oil is one of the most significant trading done in the world. Crude oil is a primary ingredient in many energy manufacturing and services industries. I certainly believe that oil should not be treated on the commodity exchange because it can have significant impact on the world economy. So if there is a fluctuation in oil prices it affects oil producers and exporters both. The market price for any product is determined by the demand and supply of it in the market. The desire to want something is defined as demand or when you realize that you want a product, can afford it, and have made a definite plan to buy it. The law of demand means that other things remaining the same, the higher the price of the good, the smaller is the quantity demanded The higher price of any product will reduce the quantity demanded for two reasons. A notable economist, Kotler has found that one of the reason is the substitution effect, that is, when the price of a product rises, other things remaining the same, its opportunity cost rises. Although each good is unique but has its substitutes, for example the substitute of oil in an energy producing plant could be water or solar energy to produce electricity. As the opportunity cost of a product rises, people have a tendency to buy less of that and more of its substitute. Another reason for change in quantity demanded is the income effect. When a price changes and all other influences on buying plans remaining the same, t he price rises relative to people’s incomes. So faces with a higher price and an unchanged income, people cannot afford all the things they previously bought. Subsequently, the demanded quantity reduces. Price has an inverse relationship with demand (Kotler, 2006). A supply is more than just having the resources and the technology to produce something but the

Shikata Ganai - It Cant Be Helped :: Free Essay Writer

Shikata Ganai - It Cant Be Helped Welcome to August 6, 1945. In a final attempt to end World War II, the United States of America drops the first atomic bomb on Hiroshima, a major industrial and military center. Temperatures are more sweltering than the surface of the sun. Light is resplendent. Air is thick and heavy with an enveloping radiation. John Hershey informs us of the experiences of six people that survived the planets’ first nuclear explosion in Hiroshima. Hiroshima begins by characterizing the situations of the six individuals just before and at the moment of the explosion that changed history. The book first introduces Miss Toshiko Sasaki, a personnel clerk in the East Asia Tin works, who had just turned to chat with her friend during a rest from work. Next, Dr. Masakazu Fujii, a doctor at a private hospital, was introduced as relaxing on his clinic’s porch and reading the daily newspaper, a stone’s throw away from a calm river. At the same time, Mrs. Hatsuyo Nakamura was watching her next door neighbor, who was making way for a larger fire escape route, through her kitchen window. Fr. Wilhelm Kleinsorge, a German priest, was lying on a couch in his room reading a magazine, corresponding with the actions of Dr. Terufumi Sasaki, a surgeon who was walking down a hospital corridor carrying blood specimens. Finally, Rev. Mr. Kiyoshi Tanimoto, the pastor of the Hiroshima Methodist Church, was in the process of tiredly m oving the belongings of his house of worship. Unbeknownst to these innocent civilians as they were carrying out their daily tasks, a plane called the Enola Gay silently passed unnoticed overhead and quietly dropped the world’s deadliest bomb that altered the future. A noiseless flash of light was the only warning they received, a split-second which gave them just enough time to turn their heads. The bomb detonated at ground zero, and in seconds, hell unlike any other kind unraveled. Miss Sasaki was knocked unconscious when her bookcase, due to the impact of the blast, trampled her to the ground. She lay trapped, as the bookcase had fallen on and crushed her leg, leaving her crippled. In the years to follow, she learns to overcome this disability and enters a house of Catholic nuns. She spends a great deal of her life aiding orphaned children.

Editorial Essay

Deryn 6 June 2012 Should Uniforms be Worn in Schools? In recent years we have been faced with the question; should uniforms be worn in public schools? Some would agree with the idea of students switching out their regular attire for khakis and button-ups. But on the other hand, others, considering me, would like to see this generation flourish and express individuality. I understand that the supporters of this conception would like to see all students as equal beings and to not worry about whose wearing the latest outfit or coolest clothes.They believe it will eliminate barriers, social and economic, among schools, which is partially true, considering they all will be dressed alike, so no one will be cast out. However, this will just be another expense to the parents who already fund public schools through taxes. Also, it will make students potential targets for bullies from other schools, only masking the already present school violence. Faculty and school districts will also find i t difficult to enforce new dress codes, due to the fact that students will not be used to the new imposed apparel.Furthermore, students will have no sense of uniqueness because they will all be identical in a manner. They will have no right to freedom of expression because they will be bonded down by the chains of equality. We should not be forced to be the same. We should be encouraged to be different. Maybe if schools would teach kids to be proud of who they are we wouldn’t have to debate over whether or not we should wear school uniforms. We should keep school uniform wearing to a minimal and display distinctiveness in schools nationwide.