Long-Term Investment Decisions Essay Example | Topics and Well Written Essays - 1250 words

Long-Term Investment Decisions - Essay Example The consumer will have to consume the commodity as normal even if the prices are increased. The managers thus should consider the reactions from the competitors before raising prices. Since consumption of the food is maintained, increasing prices may lead to rival firms to sell more units than the firm. This will reduce its sales and market share and hence loses a lot to the competitors. Consumers usually have believed that high prices are associated with high quality. If the firm wants to attract more sales, they should consider increasing quality or rebrand the product as this would change the consumer’s perception of the product in a positive way. They would thus increase their purchasing power making the firms to have high sales. Managers should also have a good timing as to when to increase the prices. During low seasons of the business, they can keep the prices low so that they keep with the increased customers demand however little it may be. These losses can then be recovered in off seasons through producing more units at high prices. For example, during festive seasons and holidays, consumers spend more than expected. The government usually enters into the production process majorly by providing incentives and changes in taxation. Providing subsidies lowers the production cost of the company. The company is able to produce more and increase the market supply (Tisdell & Hartley, 2008). To increase production, they will hire extra labor leading to employment in the economy. As supply increases, demand is relatively constant leading to low prices to the consumers. However, if the government does not provide subsidies, the company operations cost will be high and hence reduce output and will lay off workers leading to unemployment in the economy. This decreases supply and since demand is high, prices will increase leading to inflations in the economy. The government can decide to use tax

Ethics Essay Example | Topics and Well Written Essays - 1500 words - 3

Ethics - Essay Example In a business environment, the three factors must be combined to accomplish organization’s goals through a set of relationships between organization’s management, shareholders, and other stakeholders. Structures in corporate governance are provided through which the objectives of the company are set and it acts as the means of monitoring performance and achieving objectives. Equally, an organizational structure seeks to determine how the roles, responsibilities and power are assigned, coordinated and controlled and how information will flow between different managerial levels. In a decentralized structure, the decision making power is evenly distributed and divisions and departments may have different degrees of flexibility and independence In a centralized structure most of the decision making flows from the top and it may have tight control over divisions and departments. ... Owing to innovations in information and communication technology the world has become increasingly virtual. This is a concept of people with complementary skills who are equally committed to a common purpose goal where they hold themselves mutually acceptable. The first major key to this is that the finance manager will be able to work across boundaries of time and space by making use of computer driven technology. Secondly, it enables the finance manager to interact with sub teams through interdependent tasks guided by common purpose and work across links lead by transport, information and communication. Thirdly, there is quick response to changing business environments making it easier for the manager to unite experts in specialized fields working far from each other digitally. It also provides greater degree of freedom to managers involved with development projects and it saves time and money. Although this virtuosity is effective, it is different from co-relation reasons being th at a manager must build trust differently because it is measured exclusively in reliability terms. Likewise, co-located teams benefit from facilitation of the manager while in virtual teams a manager must provide clear direction. Finally, decisions must be arrived at differently to avoid cultural bias (Kelley, 2001). Discussion 3 Barriers to Change as Depicted By Gayla Holges Organizational barriers are restrictions that rise on the eve of renewing an organization direction, capabilities and structure in a bid to serve the ever changing needs of both external and internal customers. According to Gayla Holges there are three major barriers to