Biography Childhood and early education:
Businesses need to respond to a variety of changes: Social changes In the 19th century, the majority of people lived in small rural communities, with high cost of goods to small scattered stores.
Montgomery Ward operated a mail order service, delivering products at lower costs than those charged by rural stores. But as urbanization happened in the s, urban department stores became more efficient, leading to the rise of JC Penney.
Economic changes Technological changes Rockefeller produced new products from petroleum, extracting more value and reducing the price of its main product kerosene, instead of letting it go to waste.
Newspapers were the primary means of disseminating news, until the Internet made them largely obsolete. Digital cameras made film photography like with Kodak obsolete.
Ironically, Kodak invented the digital camera. Business model changes With the rise of credit cards, retailers often ended up making more profits from managing their own credit card programs than from retail. Changes in business leadership Often companies fail to adapt because their calcified ways of doing things are not efficient at producing the new type of product people want.
Specialization and Middlemen A company is limited in the range of functions it can perform efficiently.
Only a certain number of links in the value chain can be mastered and operated efficiently by the same set of people. General Motors is excellent at making automobiles, but it leaves tire manufacturing and car sales to others. Compared to local dealerships, it is too much for GM to track local conditions across the United States, decide where a lease location is most effective, understand the trade-in value of a Honda in Seattle vs Miami, etc.
Middlemen exist when they can do their part of the chain more efficiently than others can. Eyewear brand Warby Parker sells direct to consumers using the Internet as distribution instead of paying for presence in retail stores, thus cutting out a middleman like Sunglass Hut.
Conversely, tech companies used to build and manage their own computer servers at great expense, but now have largely outsourced to convenient providers like Amazon Web Services.
Instead of ten farmers taking time off to carry their produce to town for sale, one middleman collects the produce of many farmers and drives it to a buyer. In contrast, in the US, a farmer may own vehicles and siloes that are so efficient they make a middleman unnecessary.
Society as a whole saves on the amount of resources required to get the produce on the market, with the cost being the profit made by the middleman. Similarly, in developing countries, there are often more middlemen between the manufacturer of goods and the consumer.
The limiting factor here is the poverty of the consumer, who can buy much less at once. In Africa you might see small traders sitting with their wares outside retail stores, selling volumes as small as half a cigarette.
Here, the store owner clearly sees it as less efficient to break down their packaged goods into minute quantities and to handle tiny transactions, and is thus content to outsource that consumer need to a middleman.
Higher in the chain, it is not efficient for Nabisco or Philip Morris to break down their pallets into individual-cigarette sized packages.ACCT INTRODUCTION TO FINANCIAL ACCOUNTING (3) A comprehensive study of basic financial accounting processes applicable to a service, merchandising, and manufacturing business.
Business Process Management (BPM) research resulted in a plethora of methods, techniques, and tools to support the design, enactment, management, and analysis of operational business processes.
This survey aims to structure these results and provide an overview of the state-of-the-art in BPM. In BPM the concept of a process model is fundamental.
Learn basic economics with this book summary and PDF of Thomas Sowell's Basic Economics: A Common Sense Guide to the Economy. MGT Principles of Management 1 Table of Contents CHAPTER ONE: MEANING, NATURE AND SCOPE OF MANAGEMENT .. 4. Business management can be defined as the acquisition, allocation, and utilization of resources through planning, organizing, staffing, leading, and controlling.
Chapter 6 Unions and Rights in the Space Age By Jack Barbash. World War II forced the integration of the newer unions into the war effort and forced business into working out accommodations with the unions for the duration.