Homework Question on Global Competition on the Decisions Made by Management
- This is a team style paper. I only require 275 words for the portion describing:
- Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry which is Lindt, a Swiss chocolate company.
- Below are the instructions. Management has recognized the effect of changes in the real-world competitive environment and government policies on other industries and anticipates similar events occurring in their industry, so they ask you for a report considering the following points.
- Write 1,400 -1,750-word paper of no more than in which you describe how each of the following are or potentially will affect your industry or one with which you are familiar:
- New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your industry or one with which you are familiar-horizontal, vertical, or conglomerate-and explain why you made that choice.
- Current and expected government policies and regulations, including
- Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industrytaxes and regulations in place to address issues related to externalities
- Global/multinational corporations and their ability to still remain competitive on a local level.
- Recommend how the industry you chose may respond to each of the previous points.
- Format your paper consistent with APA guidelines.
Homework Answer on Global Competition on the Decisions Made by Management
Global competition involves a situation whereby, there exists competing organizations that are meant to serve international customers. Nowadays, global competition is influential on the decisions that managements of different organizations should take in regard to various operational aspects.Entry of new firms into the global market leads to sharing of the available customers in a given industry. Therefore, the alreadyexisting company`s managements are forced to take various actions, inorder to cater for such competitions.
For example, the management can lower the product prices in order to increase sales aimed at maintaining and increasing the annual profits. For instance,Lindt, a Swiss chocolate company was forced to close most of its retail outlets in 2009 when the demand of their products went down in the US, a measure to reduce expenses with an aim of avoiding losses.
Globalization widens the market for various commodities in a given industry (Gerber, 2010). Therefore, firms within an industry are likely to expand their market and operations to new markets created as a result of globalization. This increases a company`s profits due to increased supply and demand in the broad markets.Lindt has laid operations in Switzerland,France, Italy, Germany, Austria and US with the aid of globalization, a reason why it’s realizing high profits and a quick diversity.