Future Shop -https://docs.google.com/open?id=0Bx_IrhXJXnzfNWE3OGM2MTgtOWMyYi00YTk3LThlOTQtYTc2M2MwZjIyYjky
Coca Cola -https://docs.google.com/open?id=0Bx_IrhXJXnzfMzRiN2U4NjktN2MwMS00NzdlLWI4ZGQtY2EyNzIwZmZiODY2
Wind Mobile - https://docs.google.com/open?id=0Bx_IrhXJXnzfNjYxNWFkMzktYzU2Ni00MjNlLWEyZjAtOTQ1YjA2MjQ5MTk5
Tim Horton - https://docs.google.com/open?id=0Bx_IrhXJXnzfZTgwOTAzMTItMzU0MS00NGJkLWFmYjAtYmZlYTFlZmM1Y2Ex
Logitech - https://docs.google.com/open?id=0Bx_IrhXJXnzfNTM0MTRmYzUtYjkwZC00YmE4LWIxNjMtM2VmNDRmZTdiZjY0
Friday, November 11, 2011
Wednesday, August 24, 2011
Unit 8: Exercise 8-1 - Defining Oligopoly and Game Theory
Defining Oligopoly and Game Theory
Game Theory is mathematical theory in which an individual's success in the decisions or choices he/she makes affects or changes depending on the choices of others. This theory is widely used in many different levels such as economics, politics, and more. In relation to economics, big players in the market constantly must makes choices depending on the choices other players make to be successful. In economics, an individual is only concerned about his/her outcome.
Game theory was developed to analyze competitions and to improve an individuals outcome. It has a long history dating back to the year 1938. As history progressed, game theory was later applied to many different studies and was always developing. Presently, game theory is widely known as it has been used many times in many fields.
There are some indication of game theory in the current economy. Competitions in the market are always going on and companies must always find to correct strategy to improve on their success in a widely growing economy. Most technological and phone companies must always strive to be successful by choosing the correct decisions that are affected by other competitors.
Payoff Matrix and a grid like box that determines the best to the worst possible scenarios that might happen when he/she makes a choice. It is the best way to show how game theory works and how it is able to be applied to many different fields.
Collusion is an agreement between to parties where they must cooperate for mutual benefit. Usually occurs when there is an Oligopoly in placed.
Cartel is a mixture of producers and manufactures that agree on prices they will use for selling the products. Cartels will always make more profit if a party decides to cheat on the agreement. Therefore cartels normally do not last long.
Friday, August 19, 2011
Wednesday, August 17, 2011
Unit 6 Exercise 6-2 Competing as Starbucks
Competing as Starbucks
Starbucks is considered to be part of the perfect competition market because of the basic structural characteristics of perfect competition. The infinite consumers buying the product, buyers and sellers easily able to enter and exit, and information known to all public.
I think that Starbucks does indeed have many competitors out there and there are indeed many challenges that one must take in a perfect competitive environment. It is well possible to make some profit in the short-run, but in the long-run economic profit will begin to slow down.
Starbucks had to realign their business practices due to a number of stores closing. Starbucks had earlier begun implementing new devices inside the stores to improve on efficiency and services to the customers. This in turn proved to be a negative effected due to the store straying away from it's traditions, history and the passion that use to be there before. As the title from Starbucks Gossip describes: Starbucks chairman warns of "the commoditization of the Starbucks experience".
Due the restructuring of some stores, the short-run and the long-run costs must have projected some negative numbers for Starbucks. The automated equipment was indeed a short-run cost.
I do think Starbucks coffee is expensive, but there is a reason behind this. Starbucks serves quality coffee and not the usual coffee you find elsewhere. Starbucks charge these prices in connection with the quality coffee beans they get. If Starbucks were to lower their prices, Starbucks will indeed see some profit in the short-run but not in the long-run.
Sources:
Starbucks is considered to be part of the perfect competition market because of the basic structural characteristics of perfect competition. The infinite consumers buying the product, buyers and sellers easily able to enter and exit, and information known to all public.
I think that Starbucks does indeed have many competitors out there and there are indeed many challenges that one must take in a perfect competitive environment. It is well possible to make some profit in the short-run, but in the long-run economic profit will begin to slow down.
Starbucks had to realign their business practices due to a number of stores closing. Starbucks had earlier begun implementing new devices inside the stores to improve on efficiency and services to the customers. This in turn proved to be a negative effected due to the store straying away from it's traditions, history and the passion that use to be there before. As the title from Starbucks Gossip describes: Starbucks chairman warns of "the commoditization of the Starbucks experience".
Due the restructuring of some stores, the short-run and the long-run costs must have projected some negative numbers for Starbucks. The automated equipment was indeed a short-run cost.
I do think Starbucks coffee is expensive, but there is a reason behind this. Starbucks serves quality coffee and not the usual coffee you find elsewhere. Starbucks charge these prices in connection with the quality coffee beans they get. If Starbucks were to lower their prices, Starbucks will indeed see some profit in the short-run but not in the long-run.
Sources:
· The Seattle Times
(http://seattletimes.nwsource.com/html/businesstechnology/2008028854_starbucks02.html)
(http://seattletimes.nwsource.com/html/businesstechnology/2008028854_starbucks02.html)
Tuesday, August 16, 2011
Exercise 5 - 5 Economies of Scale
Cube Cafe
A potential business I would created would be a coffee shop named Cube Cafe. It will sell products such as a variety range of coffee, light snacks and desserts. Location for this cafe would be in downtown where it will receive customers throughout the day.
The size of this cafe would be at least medium so that it could serve to minimum of 30 people at full capacity. As a cafe, this would be in the food industry targeting a wide range of different consumers. These kinds of consumers would be the kind looking for a quick drink or a light meal.
The Long-run costs would franchises as well as the size of the store. Securing products for the cafe would also be a long-run cost. The short-run costs would be labour and lease. Fixed costs would be utilities of the cafe.
A similar business would be Starbucks, a well known coffee shop in North America.
Strengths: Quality coffee
Weaknesses: High prices
http://www.starbucks.com/
A potential business I would created would be a coffee shop named Cube Cafe. It will sell products such as a variety range of coffee, light snacks and desserts. Location for this cafe would be in downtown where it will receive customers throughout the day.
The size of this cafe would be at least medium so that it could serve to minimum of 30 people at full capacity. As a cafe, this would be in the food industry targeting a wide range of different consumers. These kinds of consumers would be the kind looking for a quick drink or a light meal.
The Long-run costs would franchises as well as the size of the store. Securing products for the cafe would also be a long-run cost. The short-run costs would be labour and lease. Fixed costs would be utilities of the cafe.
A similar business would be Starbucks, a well known coffee shop in North America.
Strengths: Quality coffee
Weaknesses: High prices
http://www.starbucks.com/
Thursday, August 11, 2011
Unit 5A: Exercise 5-3 Law of Diminishing Returns
The Diminishing Returns to Tobacco Legislation
Points in the debate that have merit
- Decreased amounts of smokers
- Government Intervention becoming less effective overtime
- Smuggling will always increase due to the government intervention
Points that lessen the debate
- Health bureaucrats becoming corrupted with power
The point of diminishing returns for the government
- After many long years of government intervention, all the rules and regulations have reached to a point where all diminishing. The effectiveness of the reduction in smoking have lessen after constant improvements.
Solutions that would increase the government’s production
- Slowly apply restrictions. By doing this, you will be able to fully utilize the effectiveness of regulations and rules.
- Increase taxes for Tobacco companies
Implications of supply and demand of tobacco in the article
- Tobacco being an inelastic product, people will always buy the product due to their addictions
Sin taxes and the debate
- Sin taxes are usually applied to products that have public disapproval. In this case, tobacco may be taxed due to Health organizations and their dislike to the product which gives the public their opinion.
Source : http://www.pierrelemieux.org/artdiminish.html
Subscribe to:
Posts (Atom)