Article
http://news.bbc.co.uk/2/hi/business/7957671.stm
Summary
The Indian car company Tata is going to launch the world's cheapest car next month. The car is called the Tata Nano, is about 100,000 rupees ($1,979; £1,366). With such a low price, Tata hopes it can encourage the Indian people to buy the car. About the car, it is 10 foot long and has five seats. Because of the price is so cheap, the function of the car is not going to be as good as the others. "The basic model has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available." says in the article.
Connection
The connection is the increase in the net income. In the last section of chapter 11, it mentions about how to increse the net income. Use Tata as an example, it uses the low price and high sells strategy to increase its net income. It also connects to the JA Titan game that we had played earlier.
Reflection
Some people think it may increase the company's revenur rapidly, because a lot of people are going to buy the car. In fact it is not, "Even if Tata can sell 250,000 models a year, it will add only 3% to the firm's revenues." says Vaishali Jajoo. Although it is not very successful, but personaly I think this strategy is going work well in the future. As we know, the US's car companies are all facing difficulty during the recession. Those companies could try the low price strategy to save themselve.
Monday, April 6, 2009
Sunday, March 22, 2009
Chapter 16 Article
Ch 16 Article
http://www.gamesindustry.biz/articles/sony-freezes-staff-wages
Summary
The article is about the reduction of the wages in Sony Corp. It states that the Sony Corp has frozen its employee's salaries for a year starting in April. The purpose of this reduction is to improve the company's flagging profitability. Sony Corp will also lower the workers' bonuses to the equivalent of four months pay rather than six months. The annual compensation for managers will decrease by 10 to 20 percent through wage and 35 to 40 through bonus reductions. "Executives will also be slugged with huge cuts to bonuses and salaries." Nikkei said. However, the spokesperson of Sony Computer Entertainment Europe said that they will not plan to change their employees' wages because they want to stay competitive in the market.
Connection
The connection between the article and chapter is taht they are both talking wages. The Sony Corp is reducing employees' wages and bonuses. The managers and excutives are also affected. This kind of deduction is different with the one in the text book. The deduction in the book is about taxes and those pension plans.
Reflection
This kind of news are very normal to see because almost all business are doing the same thing during the depression. I think the reduction of wages of Sony Corp is a normal reaction after the recession. However, it might be a bad thing to the business. That's because it would affect the employees' performance. Therefore, the decesion of the SCE may not be a very bad decision during the hard time.
http://www.gamesindustry.biz/articles/sony-freezes-staff-wages
Summary
The article is about the reduction of the wages in Sony Corp. It states that the Sony Corp has frozen its employee's salaries for a year starting in April. The purpose of this reduction is to improve the company's flagging profitability. Sony Corp will also lower the workers' bonuses to the equivalent of four months pay rather than six months. The annual compensation for managers will decrease by 10 to 20 percent through wage and 35 to 40 through bonus reductions. "Executives will also be slugged with huge cuts to bonuses and salaries." Nikkei said. However, the spokesperson of Sony Computer Entertainment Europe said that they will not plan to change their employees' wages because they want to stay competitive in the market.
Connection
The connection between the article and chapter is taht they are both talking wages. The Sony Corp is reducing employees' wages and bonuses. The managers and excutives are also affected. This kind of deduction is different with the one in the text book. The deduction in the book is about taxes and those pension plans.
Reflection
This kind of news are very normal to see because almost all business are doing the same thing during the depression. I think the reduction of wages of Sony Corp is a normal reaction after the recession. However, it might be a bad thing to the business. That's because it would affect the employees' performance. Therefore, the decesion of the SCE may not be a very bad decision during the hard time.
Thursday, March 5, 2009
Chapter 15 Article
Ch15 Article
http://news.bbc.co.uk/1/hi/business/4119240.stm
Summary
The article talks about different status when starting a new business. There are four kinds of legal status: sole trader, partnership, private limited company, and community interest company(CIC). It says when deciding which of these status will best fit the business, the owner should consider about a few things: tax, administration, the image of the business, legal requirements, and financial issues. In the article, it only explains how sole trader and private limited company work. As a sole trader, the owner have all the responsibility of the business' management and development. As private limited company, the business cannot be traded publicly and only one shareholder is needed. Starting as a limited may take more risk than sole trader.
Connection
In chapter 15, the whole chapter is talking about how to determine a business' status and health. This article is also talking about status, but slightly different from the one in chapter 15. The status in the text book is about how well a business is running; and in the article, the status is about the way the business is running. However, when insiders or outsiders are looking at a business, they should look at both status to see if the business is profitable and if the way of running it is correct.
Reflection
Before I have read this article, I thought a business that can make money is good enough. After finish reading this article, I think there are a lot more things to consider with when looking at a business. Not only the profitability and heath, but also the management, tax, legal problems and the image of the business. These status break down into more and further questions( like its office, employees, equipment, and shareholders).
http://news.bbc.co.uk/1/hi/business/4119240.stm
Summary
The article talks about different status when starting a new business. There are four kinds of legal status: sole trader, partnership, private limited company, and community interest company(CIC). It says when deciding which of these status will best fit the business, the owner should consider about a few things: tax, administration, the image of the business, legal requirements, and financial issues. In the article, it only explains how sole trader and private limited company work. As a sole trader, the owner have all the responsibility of the business' management and development. As private limited company, the business cannot be traded publicly and only one shareholder is needed. Starting as a limited may take more risk than sole trader.
Connection
In chapter 15, the whole chapter is talking about how to determine a business' status and health. This article is also talking about status, but slightly different from the one in chapter 15. The status in the text book is about how well a business is running; and in the article, the status is about the way the business is running. However, when insiders or outsiders are looking at a business, they should look at both status to see if the business is profitable and if the way of running it is correct.
Reflection
Before I have read this article, I thought a business that can make money is good enough. After finish reading this article, I think there are a lot more things to consider with when looking at a business. Not only the profitability and heath, but also the management, tax, legal problems and the image of the business. These status break down into more and further questions( like its office, employees, equipment, and shareholders).
Wednesday, November 26, 2008
Chapter 14 Article
Ch14 Article
http://news.bbc.co.uk/1/hi/business/7746002.stm
Summary
This article is about the risks of having an online bank account. In the article, it points out that there is a flaw inside HSBC’s online bank account system. With this flaw, fraudsters could use software to capture the keystrokes made on a particular computer to break into the individual account of a HSBC’s customer. It also illustrates the phone scam and bogus account scam. However, the banks are struggling with those fraudsters with new technologies. For example, the Dutch bank ABN establishes the biometric voice verification system in phone banking. This can verify the identity of the customer.
Connection
In this chapter, it mentions about bank accounts in section 1. I think what the book is missing is the online bank account. It is a service that can provide online money transaction. Business can transfer money without writing a cheque and check the bank statements. It is basically like a normal bank account, but the main difference is the person is dealing with data instead of money.
This article shows some of the possible risks of having an online bank account and what the bankers are doing with those risks.
Reflection
When more and more businesses are using computers, online banking becomes more popular. Money transfer can be made without going to the bank. Instead, higher risk is taken in an online banking service. Therefore, a better banker is needed. Also, business should beware of the scams and do everything that can protect the money. Like make sure the website is correct, update the computer’s security system, do not give any information easily and check the record often. In my opinion, the best way to prevent losing money is to use the normal bank account.
http://news.bbc.co.uk/1/hi/business/7746002.stm
Summary
This article is about the risks of having an online bank account. In the article, it points out that there is a flaw inside HSBC’s online bank account system. With this flaw, fraudsters could use software to capture the keystrokes made on a particular computer to break into the individual account of a HSBC’s customer. It also illustrates the phone scam and bogus account scam. However, the banks are struggling with those fraudsters with new technologies. For example, the Dutch bank ABN establishes the biometric voice verification system in phone banking. This can verify the identity of the customer.
Connection
In this chapter, it mentions about bank accounts in section 1. I think what the book is missing is the online bank account. It is a service that can provide online money transaction. Business can transfer money without writing a cheque and check the bank statements. It is basically like a normal bank account, but the main difference is the person is dealing with data instead of money.
This article shows some of the possible risks of having an online bank account and what the bankers are doing with those risks.
Reflection
When more and more businesses are using computers, online banking becomes more popular. Money transfer can be made without going to the bank. Instead, higher risk is taken in an online banking service. Therefore, a better banker is needed. Also, business should beware of the scams and do everything that can protect the money. Like make sure the website is correct, update the computer’s security system, do not give any information easily and check the record often. In my opinion, the best way to prevent losing money is to use the normal bank account.
Thursday, October 30, 2008
Chapter 12 Article
Summary
The article is about how the discounts on cash payment affect the gasoline retailers and customers. Because of the increase of the price of gas, the gasoline retailers are earning less money from the sale of gas. It is not only because of the increasing price of gas, but also the charge of the credit card fees. Therefore, sometimes gasoline retailers have to pay the amount of credit card fee that is equal or more than the sales profit. It also tells that the fee of debit card is lower than credit card. The cash discount is welcome by a lot of customers.
Connection
In the textbook, it mentions about why the companies allow discount on payment. It is because they want their customers pay earlier or on time. However, in this case, it is using the discount differently. It is use to attract customers and avoid the payment of credit card fees. In other words, it is use to increase the profit from the sale. Although the two cases in the article and the textbook look different, they both have the same purpose. They are both trying to bring the business advantage.
Reflection
This is quite impressive for me. I never think about being a gasoline retailer will be that difficult with the increasing price of gasoline. The retailer in the article loses money in every gallon of gas he has sold. That means the price of gasoline is not only affects the customers, but many other groups of people or businesses. Under such a situation, business can only survive with new policies. In addition, preventing unnecessary expenses is especially important to a business. It is because when a business is getting a very low income from sales, saving money is a very good way to bring the business profit.
Wednesday, October 8, 2008
Chapter 11 Article
Article
http://jrantonini.wordpress.com/2007/08/22/strategies-to-increase-net-income/
Summary
This is an article that teaches people how to increase their net income. In the article, the author illustrates two examples. The first example is about a client who rents spaces at a large vendor market, and then uses its by-product to earn three times as much as its renting business. The second example is a story of a divorced couple. They both wanted to have a successful divorce; therefore, the wife went to finish her college degree. When the time they divorced, the wife then could go back to work again.
Connection
The connection between the article and chapter 11 is "how to increase the income". In the last section of the chapter, the text shows us many ways to increase the income. For examples: reduce the cost, increase the selling price and extend the days of selling. As what the article teaches, we can also use some by-products to get even more profit. As the article mentions in the second example, prepare for the in coming event can also help the business to gain more income.
Reflection
This article gives me some new thoughts about increasing income. Not only make profit at the things a business already has, also try to make new income sources. Making preparation is also very important for a business. Because it is necessary for a business to know the current of the market and the fiscal condition changes around the world. That could profit the business by making correct decision and purchasing proper goods.
http://jrantonini.wordpress.com/2007/08/22/strategies-to-increase-net-income/
Summary
This is an article that teaches people how to increase their net income. In the article, the author illustrates two examples. The first example is about a client who rents spaces at a large vendor market, and then uses its by-product to earn three times as much as its renting business. The second example is a story of a divorced couple. They both wanted to have a successful divorce; therefore, the wife went to finish her college degree. When the time they divorced, the wife then could go back to work again.
Connection
The connection between the article and chapter 11 is "how to increase the income". In the last section of the chapter, the text shows us many ways to increase the income. For examples: reduce the cost, increase the selling price and extend the days of selling. As what the article teaches, we can also use some by-products to get even more profit. As the article mentions in the second example, prepare for the in coming event can also help the business to gain more income.
Reflection
This article gives me some new thoughts about increasing income. Not only make profit at the things a business already has, also try to make new income sources. Making preparation is also very important for a business. Because it is necessary for a business to know the current of the market and the fiscal condition changes around the world. That could profit the business by making correct decision and purchasing proper goods.
Subscribe to:
Posts (Atom)
