Product Classification and Merchandising Strategies for Retail Success
Product Classification and Merchandising Strategies
Classification Based on Brand
- First Brand: Well-known articles nationally and internationally with significant investment in publicity. Increased market participation rates. They offer quality, reliability, and safety. Pioneers and innovators.
- Second Brand: Nationally known articles. Less market share. They offer higher margins, warranty, quality, and safety.
- Brand Zone: Articles known regionally. They offer security and safety. Are rarely innovative.
Organizational Design: Contingency Factors, Size, Technology, and Structure
UNIT 8 THE CONTEXT OF ORGANIZATIONAL DESIGN
1. CONTINGENCY FACTORS
Contingency factors are those variables that are derived from a specific situation in which the enterprise operates.
Aspects such as size, technology, environment (dynamism, hostility, complexity) or age influence the design of the organizational structure of the company.
CONTINGENCY APPROACH
The contingency approach indicates that the efficient design of structural models depends on the adequacy of internal variables (design) and external
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International Trade
Forms of Economic Integration
- Free Trade Area: An agreement to eliminate tariffs, quotas, and preferences on most goods and services traded between member countries.
- Customs Union: A free trade area with a common external tariff and common external trade policy.
- Common Market: A customs union with relatively free movement of capital and services.
- Full Economic Union: The final stage of economic integration, characterized by complete harmonization of economic policies.
Effects of Economic
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What is Unsystematic Risk and How Can It Be Eliminated?
Unsystematic risk, also known as stock-specific risk, affects a single stock price but not the entire market. It can be eliminated through diversification by purchasing various securities or equities. For example, Apple reporting a bad quarter would be considered unsystematic risk.
How Does Beta Differ From Standard Deviation as a Measure of Risk?
Beta (Systematic Risk)
Measures the risk of the market as a whole and total volatility.
Standard Deviation
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International Trade and Globalization
Outsourcing and Offshoring
Outsourcing: The contracting out of a business function, commonly one previously performed in-house, to an external provider.
Offshoring: The relocation by a company of a business process from one country to another, typically an operational process, such as manufacturing or supporting processes.
Multilateralism and Regionalism
Multilateralism: Exemplified by the World Trade Organization (WTO), multilateralism involves a group of countries
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Benefits and Cons of Expansion
Benefits:
- Benefit from economies of scale leading to lower average costs
- Have more access to sources of finance
- Can afford to diversify
- Can afford to carry out research and development (R&D)
- Have greater status and power
- Can afford specialist managers
- Reduce risk of takeover
Cons:
- Become too big and difficult to control, leading to inefficiency
- PLCs suffer from a divorce of ownership and control between shareholders and managers
- Greater risks as more capital is invested
- Need