Understanding Macroeconomic Theories: Classical vs. Keynesian Economics
Classical vs. Keynesian Economics
Core Principles
Classical Economics
Classical economists believe in flexible prices and that the price level adjusts to shifts in aggregate demand. They argue that government interventions have no effect on aggregate output.
Keynesian Economics
Keynesian economists believe in rigid, downward-sloping prices, leading to a flat aggregate supply curve. They argue that classical economics holds in the long run, but in the short run, the price level doesn’t adjust effectively.
Read MoreShangri-La’s Global Expansion: Challenges and Strategies
Challenges Outside of Asia
Shangri-La faced several challenges when expanding outside of Asia, particularly in countries with higher labor costs and different cultural norms.
Labor Market Issues
- Higher Labor Costs: Countries like Australia, Canada, and the US had significantly higher labor costs compared to Shangri-La’s Asian markets, leading to challenges in maintaining their desired staff-to-guest ratios.
- Staff Shortages: Finding trained hotel staff in these markets was difficult, further exacerbating
Strategic Human Resource Management: Optimizing Employee Investment
Human Capital and Intellectual Capital
Human capital refers to the value employees bring to an organization through their skills, knowledge, and experience. Intellectual capital encompasses the ideas, patents, copyrights, and technology generated by human capital.
Maximizing Employee Investment
Strategic human resource management (HRM) focuses on long-term planning and maximizing the return on investment in employees.
The Role of Human Capital
Employees contribute to a business or organization by:
- Performing
Distribution Channels & Cost Analysis in Business
Channels of Distribution
Overview
Distribution channels are organized networks of businesses and individuals (middlemen) that facilitate the movement of products from manufacturers to end users. These channels evolve over time due to changing consumer preferences, new selling methods, and advancements in transportation.
Channel Members
- Manufacturers: Create the products.
- Middlemen: Facilitate the distribution process (e.g., wholesalers, retailers).
- Customers: Purchase and use the products.
Functions of
Read MoreSmartco Expansion: Advantages, Disadvantages, and Growth Strategies
Smartco Expansion: Advantages and Disadvantages
Advantages of Expansion
Strong Employee Relations
Smartco has a strong reputation for positive employee relations and values its employees’ contributions. This can lead to increased effort, better service, customer retention, brand recognition, and attracting top talent.
Loyalty Cards and Internet Services
Smartco’s loyalty cards and internet services not only encourage customer loyalty but also provide valuable customer data for optimizing business strategies
Read MoreGlobal Staffing and Strategic Alliances
Stages of Staffing in Multinational Enterprises (MNEs)
Phase I: Domestic
Focuses on the home market and export.
Phase II: International
Focuses on local responsiveness and transfer of learning.
Phase III: Multinational
Focuses on global strategy, low cost, and price competition.
Phase IV: Global
Focuses on both local responsiveness and global integration.
Reasons for Assigning Expatriates
The main reasons firms hire expatriates include entering new markets, meeting new demands from customers and investors,
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