Fully Explain How Advertising Can Affect Profits in...

This essay is going to examine how advertising strategies used in different market structures affects profits of the firms. This essay is being written based on Advertising, an article by Geoff Stewart, in which he examines â€Å"how do firms determine their advertising strategy†. In this article he uses Monopolies as an example of a non-competitive market and Oligopolies as an example of competitive markets, so in this essay Monopolies and Oligopolies will also be used as examples. However other competitive markets include perfect competition and monopolistic competition. A Monopoly is a market structure characterised by one firm and many buyers, a lack of substitute products and barriers to entry (Pass et al. 2000). An oligopoly is a†¦show more content†¦To help explain how profits are made through advertising in a competitive market Stewart uses game theory. Game theory is a technique that uses logical deduction to explore the consequences of various strategies that might be adopted by competing game players (Collins, 2000). Table 1 (Stewart, 2005) is a simple view of two firms that have to choice of advertising or not advertising, if both firms were to advertise there profit would be 1, if one to was to advertise and the other didn’t then the firm who is advertising will get a profit of 3 and the one not advertising will get 0, if they both don’t advertise then they will both make a profit of 2. It is in the interest of the firms to advertise however because there is the possibility of them making more profits than not adv ertising. The choice to advertise is the firms dominant strategy and firms will always go for their dominant strategy. Table 2 (Stewart, 2005) is used to describe how advertising in a market may increase demand in the market rather than market share. It is still in the firms’ interest to carry out their dominant strategy in this case however it also maximises joint profit in this case. This shows that in a strategic setting, firms profit maximising actions may, but will not necessarily generate profit maximising outcomes (Stewart, 2005). In conclusion it can be seen that advertising in a monopoly is an effective way to increase profits. ThisShow MoreRelatedMarketing in Hospitality by Quynh Anh3216 Words   |  13 PagesService Industry Context 1.1define and Explain the Concept of Marketing A concept is the general scheme or formation of something and marketing is the way in which a produce is moved by means of a channel to reach its target audience. Marketing idea is the attitude which encourages firms to center on their consumers’ desires. This is by examining their wants and making efficient choices that suit those requirements in an enhanced way than the competition. An advertising concept holds the belief that high-qualityRead MoreWhich of the Cournot and Bertrand Models of Oligopoly More Realistically Reflect Firm Behaviour?2626 Words   |  11 Pagesoligopolies have several models to try to explain how they react, examples of these are the kinked demand curve, Bertrand and Cournot models. A non competitive oligopoly is ‘a market where a small number of firms act independently but are aware of each others actions’ (Oligopoly, Online). In perfect competition no single firm can affect price or quantity this is due to intense competition and the relative small size of the firms, on the other hand there is a monopoly market where there is little or no rivalryRead MoreAdvertising and Promotion - Hnd Essay5099 Words   |  21 PagesTask 1a. Explain the structure, roll and relationship between parties in the communication industry. 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Renovate the stadium ($ 1 m) Key A decision node A probability node Discounted option [5 to 6 marks] The decision tree is accurately constructed and fully labelled. All calculations are correct with one minor errorRead MoreOrganizational Culture and Environment5941 Words   |  24 Pages(which was launched on 4th December 2007) which attracted more customers. o It is affordable by the common man (not only the elite class). o Ufone was the first cellular Company in Pakistan that introduced the service of GPRS and hence took the competitive advantage. o Ufone has some exciting and energetic SMS packages that made SMS almost free. They are offering Rs. 25, Rs.50, Rs.100, Rs. 150 SMS packages which its subscribers are in love with. o Ufone has some very exciting and low call packagesRead MorePepsico17225 Words   |  69 PagesPolices ,Values amp;Statements | 10 | VII. Social Responsibility | 13 | VIII. Financial Analysis | 15 | i. Liquidity Ratios | 15 | ii. Activity Ratios | 16 | iii. 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At what level of the control variable are net benefits maximized? Net Benefit is also profit. The formula for this is MB = MC. As seen in the table completed above, after applying the formula then net benefit is maximized where Q = 106. b. What is the relation between marginal benefit and marginal cost at this level of the control variable

Public Opinion On Youth Violence And The Increment Of...

Despite negative public opinion regarding youth violence and the increment of youth offences, the Canadian judiciary has unequivocally supported the rehabilitative and re-integrative approach of the YCJA in plethora of cases discussed below. The situation is fostered because this rehabilitative approach seems to be uniformly shared amongst most of the provinces, notably, in less violent cases or violent cases involving first time offenders. However, sentencing has mostly differed in cases involving serious violent offences like murder etc. especially because of the existence of youth prior records relating to violent offences along with psychological assessment on the probabilities of recidivism. These factors support incarceration as†¦show more content†¦Section 39(1) (a) of the YCJA, which represents one of the four gateways to a custodian sentence, provides that â€Å"[a] youth court shall not commit a young person to custody unless†¦ (a) the young person has commit ted a violent offence.† The Court of Appeal, in a separate decisions, upheld both the sentences, holding that the sentencing judges did not err when they determined that C.D.’s arson to property offence and C.D.K’s dangerous driving offence were â€Å"violent offences† within the meaning of s. 39(1) (a). While allowing the appeal, and appreciating the fact that the term â€Å"violent offence† has a spectrum of meanings and that it can be applied to property as well as to persons, held, that in the context of YCJA the term â€Å"violent offence† should be narrowly construed. The Court based its decision on the object and scheme of the YCJA, and the intention of the Parliament in enacting the same. The Court observed â€Å"that the YCJA was designed, in part, to reduce over-reliance on custodial sentences for young offenders. Moreover, where two interpretations affect the liberty of an accused, the one more favourable to the accused should be adopted. A narrow interpretation of â€Å"violent offence† means that the definition must exclude pure property crimes. The Court further noted that a harm-based definition of â€Å"violent offence† is preferable to a force based definition because it avoids the flaws associated with a

Life Cycle Assessment in Built Environment - Myassignmenthelp.Com

Questions: 1. As an accountant of the company, you would like to have a better understanding of how the sustainability of the company will impact on the stakeholders. You believe the most efficient way is to identify important stakeholders. Refer to the case and identify five relevant stakeholder groups and discuss how different accounts could be used to satisfy each groups information requirements.2. In order to enhance companys performance, the CEO thinks it might be insufficient to use profit as the only performance indicator, and is considering using a range of key performance indicators to manage the business. You believe the Balanced Scorecard is a useful performance measure framework that can be used, as it gives management an overall picture of companys performance. You have been asked to develop a Balanced Scorecard to assist RTXM in managing its overall companys performance and demonstrate how it works to the management and staff in next company meeting. You need consider ONE of the m ost important metrics that could be used for each of the four perspectives of performance and explain the reason why it has been selected and how it can be used to improve companys performance.3. The CEO believes the company was attractive because of its previous low price strategy but has also noticed unprecedented awareness from customers on the companys social responsibilities. The CEO approaches you to discuss the selection of supplier, which supplier is better for companys strategic development. Provide an explanation to the CEO with reference to the potential costs and benefits of working with both Super Cheap and Green Fashion.4. After your analysis above, the CEO starts realizing the importance of working with social and environmental friendly suppliers, however, still does not have a comprehensive understanding to the positive and negative impact his companys products might have both socially and environmentally. You decide to use the Life Cycle Analysis (LCA) for a product that the company offers to enhance their understanding. Draw the LCA, and select one or two stages of the LCA, identifying a total of four possible social and environment impacts. If the impact is detrimental either socially or environmentally, give suggestions to minimize the impact. If the impact is positive, give suggestions as to maximize the benefit. You are required to undertake some research to answer this question.5. Subsequently the company decides to contract with the Green Fashion. Some important shareholders attempted to block this proposal. Their belief, as the owners of this company, is that the company should aim to maximize the value of their shares, however, the new business plan could significantly increase the costs and therefore reduce the profit. You are required to identify an organisation, business or industry and explain whether and how it could potentially increase the value of its shares in the long term by being accountable to its major stakeholders. You are required to undertake some research to answer this question. Answers: Answer 1 The five key stakeholders along with the relevant accounts for satisfying the informational needs are highlighted below (Deegan, 2014). Shareholders The decision regarding supplier can impact the profitability of the company and hence the net worth. As a result, the existing 20 shareholders of the company are stakeholders. The key accounts of importance for the shareholders would be the net profit to begin with but would include metrics related to injuries to workforce (including those of suppliers). Customers Sustainability has become increasingly important for customers who desire to buy goods from manufacturers having ethical practices. As a result, the sourcing decision could impact the preferences of customers making them stakeholders. The sourcing policy along with the metrics related to environment sustainability and consumer complaints refunds are essential. Also, the sales account in terms of price charges would be critical. Government/Professional Bodies Ethical sourcing has become significant ever since the abysmal labour practices followed in the sweat shops have come to light. As a result, there have been agreements in the clothing industry whereby the big brands have taken measures to focus on ethical sourcing. Key account closely watched would relate to the sustainability report, the sourcing policy, employee related injuries along with performance metrics. Suppliers The sourcing policy adhered by the company has a impact on the present as well as potential suppliers in the future. The informational needs can be fulfilled from the sustainability report besides the balance sheet which would indicate the financial strength of the company. Lenders The sustainability practices adopted by the company could impact the lenders owing to potential financial impact of any lapse. In case of sourcing from Bangladesh, there is considerable risk to the business which could increase credit risk. Key accounts would be the sourcing policy, sales, profits along with liquidity indicators (both short term and long term). Answer 2 Balanced scorecard is a tool to ensure that the performance metric of the business are broad based and hence not too much biased towards economic performance. Considering that the balanced scorecard enables the business to focus on other critical aspects such as learning and customer satisfaction, hence this leads to higher sustainability for the business. There are essentially four perspectives namely financial, customer, internal business processes along with learning and growth. The most critical metric for each of these performance dimensions has been outlined below (Adams, Neely and Kennerley, 2007). Financial The two key important metrics would be sales growth along with profit margin. However, the more significant of the two metrics would be profit margins especially considering that the company would go with expensive but green supplier. As a result, the margins in short term could be under pressure and as a result series of cost cutting measures may be initiated by the company whose effectiveness would be captured by this metric. Customer The number of customers complaints received as a percentage of transactions should be the appropriate metric. This becomes significant in the wake of increasing complaints from the customer that the business faces in wake of expansion. Keeping customer complaints under check would enhance the customer satisfaction. Internal business processes The product quality is a critical metric in this regard. The company should aim to bring the damaged or defective goods to less than 0.5% of the total goods manufactured. This would lower the costs related to repair, replacement and quality check and would enhance the overall customer satisfaction along with profitability. Learning and growth The company should aim to improve the online shopping experience as it an area of weakness and has tremendous scope for growth. Also, this would help the business lower down costs and improve operational profitability. A suitable metric could be clicks generated along with conversion rate of clicks. Answer 3 In order to choose between the two suppliers, a cost benefit analysis needs to be performed as indicated below. Supplier 1: Super Cheap Benefits: It would provide a vast array of products desired by the business at very cheap prices in limited time which would help the company enhance the market share and the profitability of business. Higher profitability in turn would lead to creation of wealth for shareholders Costs: Owing to poor past record with regards to sustainability and labour practices, negative publicity can be generated for the company especially in case of any unfortunate incident. This is especially likely in an environment where customers are quite sensitive about social responsibilities of business. The company could potentially invite lawsuits for unethical sourcing involving practices such as child labour which besides financial costs could adversely impact the expanding business. Green Fashions Benefits: The company boasts of ethical practices which the company can promote amongst the customers and hence look to charge premium from the customers. No risk to the reputation in the long run Matching value system and sustainability goals make the relationship sustainable Costs: The associated costs of the products would be higher forcing the company to alter business model and look at other ways to bring down operational costs. Conclusion The preferred choice would be Green Fashions even though in the short run, the company may have to alter the business model to accommodate the higher costs. However, in the long run, the company does not face high risk of reputation and customer loss on account of unethical sourcing. Besides, the common values make the business relationship more sustainable. Answer 4 The various stages of the LCA are highlighted below (Finnveden et. al., 2009). The two stages which have been chosen for this analysis are inventory analysis and impact assessment. In inventory analysis, the focus is on the inputs and the outputs generated. The impact assessment focuses on the effect related to the use of resource and related emissions and classifying the same in different categories of impact (Crawford, 2011). The product can be chosen as a T-shirt. The various social and environment impacts are outlined below (Finnveden et. al., 2009). In case of unethical sourcing (i.e. by choosing suppliers such as Super Cheap), the environment would be damages severely owing to the discharge of the untreated waste directly into rivers. In order to mitigate the same, the company should choose a supplier which minimises waste generation or disposes the same in a responsible manner. Further, pollution of the river could have severe environmental consequences to the marine life which is apparent from Super Cheap practices. In order to mitigate this, it becomes necessary that supplier should comply with environmental norms and ensure that the marine life is not adversely impacted. There are adverse social consequences with regards to various settlements near the polluted water bodies owing to the manufacturing of T-shirts. As a result, they might be required to migrate to another place where drinking water is available. In order to reduce this undesirable effect, the dumping of waste and pollutants in rivers should not be practiced and only such suppliers should be entertained. Further, it is quite possible that these t shirts are produced using child labourers who are employed in sweat shops. This leads to their exploitation and hampers their education growth. For mitigation, it is imperative that a supplier should be chosen that does not use child labour so that this social menace can be discouraged. Answer 5 The clothing industry in the west (whether be it US or UK) is an example of industry which can improve and act in the interest of the majority shareholders so as to create wealth for them in the long run. A key practice which is followed by major players in this industry is outsourcing their cloth manufacturing to South East Asian countries which happen to be major textile manufacturers. One of the key reasons for this outsourcing is the lure of lower costs owing to availability of cheap labour. However, the sub-contractors and contractors in these countries in a bid to further lower costs tend to deploy a sizable amount of child labour. It is estimated by the ILO (International Labour Organisation) that about 170 million children across Asia work as child labour with a predominant share being concentrated in the garment industry (Moulds, 2016). Considering the complexity of the global supply chains, at times the big brands are not aware of such practices at the site of contractor. However, there have been instances in the past when despite being aware of such practices, no concrete action has been taken in order to safeguard their own interest of maximising profitability. However, this goal is not achieved as has been seen from the experience of Nike and Adidas which have faced tremendous implications for running sweat shops for manufacturing of shoes. It is essential that the clothing industry takes a clue from their experience and understand that in the long run, wealth can be generated for the majority shareholders only through sustainable and ethical business practices (Hymann, 2017). Going forward, it is expected that this practice would tend to diminish which would auger well for the cloth industry in the west despite some hiccups on the cost side. References Adams, C.; Neely A. and Kennerley M. (2007)Performance measurement frameworks: a review, 3rd ed., Cambridge: Cambridge University Press Crawford, R.H. (2011) Life Cycle Assessment in the Built Environment, 2nd ed., London: Taylor and Francis. Finnveden, G., Hauschild, M.Z., Ekvall, T., Guine, J., Heijungs, R., Hellweq, S., Koehler, A., Pennington, D. and Suh, S. (2009) Recent developments in Life Cycle Assessment, Journal of Environmental Management, 91(1),pp. 1-21 Hymann, Y. (2017) Child Labour in the fashion industry, [Online] Available from: https://goodonyou.eco/child-labour/ [Assessed March 9, 2018] Moulds, J. (2016) Child Labour in the fashion supply chain, [Online] Available from: https://labs.theguardian.com/unicef-child-labour/ [Assessed March 9, 2018]

The Plague Essays (463 words) - Plague, Absurdist Fiction

The Plague The novel that I chose to do this report on was, The Plague, by Albert Camus. It is about a plague that hit the European countries in the middle ages. I chose to describe the literary term of parallelism. Here are some following facts about the story's plot that involve parallelism through the novel. The novel begins at Oran where the plague becomes known. The main character, Dr. Gernard Rieux, is a doctor. In the beginning of the story he finds a dead rat on the floor. Even in those times rats were not found dead on the middle of the floor. This was unusual, but he threw out the rat and forgot about it. Eventually the dead rats began to pile into large masses and burned. Soon after there were some people that got very sick, which made Mr. Rieux very curious. These reports of these ill people and the death of the rats were the beginning of the parallelism for this story. Since Bernard was a doctor he was the first to actually attempt to help one of these sick people. Michael was his first patient in this matter. He was the sickest person that the doctor had ever seen. Michael was pale white and vomited often, he hurt so much from the vomiting that he seemed paralyzed. Mr. Rieux tried to help the man the best that he could, but he ended up dying. Michael was the first person to die of this illness. After his death, many cases of this illness were reported widespread. Again more details of sickness and death, this is the parallelism for this novel. As the reports of sickness and death came to inform Dr. Rieux, he tried to comfort and cure the plagued patients. About ninety percent of the people infected had died. He wanted a stop to this plague. Quickly he linked the rats with the people. He knew that the rats began to get sick before the people did. At this time many people had the plague, except for the Chinese visitors. They never were infected. As the plot moves on death, sickness and the plague are still relevant. He studied their behaviors and everyday tasks and learned that they do something that was never often done in these middle ages. Not many people in these days bathed. The doctor began to notice that the people that bathed never got sick. So he asked all of his, still living patients, to take baths frequently. This proved to be the miracle cure for the people. The doctor asked his other fellow doctors to follow the same practice with their patients. The word was spread and the plague was soon wiped out. So as you can see, the literary term of parallelism was deemed very relevant through the ongoing plot. Death, sickness, and the plague epresented the story's parallelism. Albert Camus made parallelism the main literary term for this novel, given away by the title, The Plague.