BUSI 1301 Discussion PDF

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1. What are the consequences of deficit trade in a country? 2. How do you compare employment options and product availability in communism and capitalist systems? Please explain.

1. A trade deficit is not a problem when an economy is growing rapidly or experiencing high inflation. However, during a recession or even depression, a trade deficit can do more harm than good. For example, a trade deficit indicates a country’s unbalanced economy which does not focus on long-term investment but on short-term consumption. Therefore, foreigners would have a greater claim on domestic assets causing depreciation in the exchange rate and facing uncompetitive exports. 2.

In the communist system, people have little to no choice of careers, goods, and services. They do have few opportunities to open a business or to work in international companies; thus they would work at government-owned industries or farms. Citizens are paid less for their hard but have to pay high prices for goods and services. The communist governments control everything and make rules that only benefit the governments. In capitalism, people have plenty of choices of choosing careers since governments do not involve too much in the market. Prices are not set by the government in communist countries but are determined by supply and demand. Citizens are allowed to bring up ideas and control the market in many ways. They are also encouraged to start up and create jobs for people; therefore, workers could apply for the jobs that they want and be motivated. People get paid off for their hard work and paid reasonable prices.

1. Compare the liability of the owners of partnerships, sole proprietorship, and corporations. Please explain 2. Explain the advantages and disadvantages of franchising. Please explain.

1. The sole proprietorship has unlimited liability. This means, in case the business accounts cannot cover his debt, that lawsuit claimants or creditors may be able to access to the owner's personal accounts, assets, or property if any business accounts cannot cover his debt. It’s difficult for this type of ownership to raise funds and attract qualified employees. However, this is the easiest way to conduct business since there is no

requirement for official meetings or record keeping. The partnership has a little bit of protection for the owners since liability may have shared among many partners. Misconduct partners are responsible for themselves; others may not be affected. A corporation has the most liability protection since this type of ownership is considered a separate legal entity. Shareholders or stockholders are not personally liable for the debts of the company. A shareholder's financial liability only extends to the amount of money he has invested in the company; therefore, the business creditors can not reach into the personal assets of individual shareholders. 2. Small businesses find an entry into the business world through franchising. A franchisor is in charge of providing its franchisee’s several benefits such as management training, marketing, financial advice, and financial assistance. Those companies usually “have a lower failure rate than other start-up organizations.” They can easily customize products to suit the local needs, reach break-even point faster, and grow internationally (pg.107). By gaining experience and finding more connections in the local market, franchisees become more adaptable when it expands into other areas. The disadvantages that franchising contain are high initial investment, lack of control or privacy, and usually a damaged reputation. 1) A strategic plan is a very long-term plan (one to five years) and focuses on direction and strategy for the whole business. This plan aims to answer the questions: Where do we want to go? How we get there? How are we doing? The highest managers will create synergetic plans, which include plans to add products, purchase companies, and sell unprofitable (pg. 115). The fact that a business has a specific strategic plan will help the development of business, and its success will be clearly defined. A tactical plan is a short to medium-term planning; six months to one year’s time span. This is where sub-system decisions are made. Tactics are very closely influenced by the functional objectives of the business. In comparison to strategy, tactics involve fewer resources or less of significant commitment to risk. Because of their short-term nature, they are easier to adapt or adjust if changes in the environment while continuing to focus on the company’s overall strategy. The operational is day-to-day planing and more about the functional areas. The purpose of the operational plan is to provide staff with a clear picture of their responsibilities. It will usually outline: what tasks must be done, who is responsible for each task, when the tasks must be completed, and what financial or other resources are required. A strategic plan outlines the longterm goals for the future, while an operating plan defines how the team gets there through daily activities and processes.

2) Line and staff personnel play an essential role in meeting the business’s goals. For example, the Production department is responsible for ensuring that raw materials are provided and made into finished goods effectively. The Distribution department is in charge of overseeing warehouse operations and marketplaces. The Marketing team will determine the best way to advertise and sell it. Each employee will focus on their area of expertise and seek help from the staff personnel, such as finance or human resources staff. To ensure that line and staff personnel do work together productively, the managers or supervisors must make sure both groups understand the organizational mission, have specific objectives, and be willing to help each other along the way.

1) Maslow’s hierarchy of needs explains that everyone is motivated to satisfy five basic needs. These needs are arranged in a hierarchy. We are motivated to meet our basic needs before we pursue higher-order needs. In particular, employees whose work enables them to contribute towards a greater cause that they believe in, are driven by a higher sense of achievement and fulfillment. Managers motivate workers by paying and promoting them for a job well done. In addition, they need to create a caring and safe working environment, which makes workers feel protected and enthusiastic. When an employee feels this need, then to get the esteem of his colleagues and superiors, he is inclined to work well, to work hard, this is a good definition of motivation. 2) Theory X assumes that employees dislike work, avoid responsibility, only work for money, etc. In contrast, theory Y deals with employees who enjoy working, are selfmotivated, ambitious, and responsible. When managers use theory Y instead of theory X, there is more productivity and more enthusiastic employees. 3) Job description and job specification are two data set of Job analysis. The job description describes jobs and tells the job holders why it should be done and how or when they should be performed. It is a written statement providing a job summary, job location, job duties, and working conditions. Job specification states the minimum qualifications required for the satisfactory performance of defined duties. It focuses on education, experience, skills, mental and physical health, etc.

1) Search about one company you like and explain its target market. 1) I would like to choose Apple as my case study analysis. Apple’s target is now the global market. People can find Apple stores and outlets in major areas of the world. Their consumers are 18-40 current iPhone users, tech-savvy consumers, and middle to upper-class people. Apple creates products that make life easier for businessmen, college students, and technology buffs. They choose Apple because of its high speed, easy interface, slim appearance, and large memory compatibility. Even though Apple prices are in the high range, they usually have student discounts and offer good deals for customers.

2) Which marketing mix variable is the most flexible? Why? Throughout 4 P’s, price is the most flexible marketing mix. Price is a key element in the marketing mix as it relates directly to revenue and profit. Prices could be set and changed in any minute....