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).
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