Economic Growth and Standards of Living

Economic Growth and Standards of Living International Marketing Tehniat Zafar Is it possible for an economy to experience economic growth as measured by GNP without rise in standard of living? Discuss. Ans: A Nation’s â€Å"GNP† Gross National product is the total amount of its economic production and resources. On the other hand, The Gross National Product amount in no way specifies the method in which this wealth or money is circulated in the economy. There are many cases in â€Å"under-developed† states like 1% of the inhabitants may or would control 80 % of the wealth as there is a large income disparity and unequal distribution of wealth. Therefore, however the economy may develop and the amount of GNP will escalate significantly. It is not necessary that the largest ratio of the people may experience an appropriate increase in their standard of living because population rate is so high in these nations. Population growth is one major problem. Nevertheless, total national income might significantly rise because there will be more workforce. The average per capita GNP will decrease if population growth is tremendously great because there is a large amount of income disparity among people. GNP measures the economic condition of the country that how the economy is towards growth. Acording to an assumption: All other things equal, A rise in GNP will read to an increase in the standard of living people aswell. Vice versa that if a nation increase its standard of living their GNP rate will increase aswell. One benefit public can benfit from higher growth rate is that the will be consuming more goods and services and it is also an economic assumption that consumption is related to utility and higher consumption in terms of theory there is greater level of prosperity. Higher growth rates results in higher tax revenues and when the tax revenues will increase the government can spend more on siginificant services like health, roads, education. It is a known fact that improved health can also lead to improved standard of living and better educational standards can promote literacy and development as education is a significant tool of welfare and prosperity. If a country’s growth rates are high the unemployment rate will also decrease as there will be more jobs. As employment is a major reason of social problems and issues but structural unemployment like due to technological changes will not decrease. Law of Diminishing returns is an economic theory, which means that the tenth unit of a good will give much less satisfaction than the first one. For example if we already have two luxury cars, will our living standards actually recover if we now have the ability to own three cars now? Frequently as economic growth expands earnings, people progressively save their wealth as this is basically because they fight to find whatever expressive to devote their wealth on and which is suitable for them Economic growth can also increase pollution. Global warming side effects are becoming a significant problem for the society. On contrary to it high economic growth can be used develop better techniques to lessen the effects of pollution and pollution itself. As there is a large amount of income disparity and unequal distribution of wealth high economic growth can cause more increased inequality because educated people will get more benefit and illiterate people will not get as much benefits as compared to educated people. Higher economic growth results in higher incomes and wages of people and because of that the crime rate increases aswell because crime is not basically related to poverty it is mostly related to theft, as you can see in the late 50’s or 60’s technological gadgets like mobiles phones and tablets were non existent and in today’s world these gadgets are the ones which mostly get stolen and these thefts are higher now. Higher growth rate will affect standard of living as the people will start to work more hours thus disturbing their personal life. They will get higher incomes but they wont be having enough time to spend it with their family with peace. As the economic growth will increase many diseases will increase aswell as you saw that in today’s standard of living obesity is a common disease as people have money and increased prosperity they avoid doing work themselves or even to cook food for their self so they just go out buy all tha fast junk food which later result in many new diseases in them. It’s a proven fact that when an economy’s growth rate rises the income increases aswell money is more available to people through employment oppurtunities when the economy is powerful people spend more money and consume more products. As a country develops, income arises, population growth shifts, expectation for a better life gets high, people’s demands arise. Economic rapidness affects the consumer behavior and in every dynamic economy consumer and consumption patterns change rapidly High standards of living is directly related to rapid economic growth as the workforce of economy will expand and they will produce more and the public will consume more so it’s a direct relationship that as production will increase consumption will increase aswell. Labor productivity increases with increasing growth rate, increased productivity helps the economy in the long run to a much greater extent then it hurts the labour force. As the productivity upsurges, so do the sum of goods and marketplaces open. Likewise, as products turn out to be less lavish, due to more well-organized manufacture techniques, the amount demanded for some of those goods also upsurges. Low developed countries are more benfited with high growth rates because they are more in need of it as developed countries. High economic growth help the nation to deal with many crucial problems of poverty, unjustice, basic facilities etc. We cannot say that economic growth is destined to bring unhappiness in fact we have to connect the potential of economic growth to make sure it really does increase the living standards of the inhabitants. A country which lacks productivity will have lower wages and income as compared to countries with higher productivity levels. High standard of living demand prosperity and for prosperity the proper system of health, care, nutrition and life expectancy must be assured. The more prosperous an economy will be the more his citizens will healthy and fit and in this way they will work for their nation more efficiently. We cannot say that prosperity stays stationary. As an alternative many nation’s over time become or less affluent. An economic boom may or may not bring prosperity to that country. Higher livings standards basically benefit majorly all the inhabitants of an economy a rapid increase in labor supply will result in labor demand aswell thus minimizing the chances of unemployment. High growth economy lead to high incentive so when the living standard of the population will increase people will more like to invest more because of the incentive the economy is offering and this will improve their standard of living more. If we take a look at the history 1950 or 1960 in USA’s rapid high growth resulted in inquality which resulted in a decrease in standard of living. Consequently, we analysed some benefits and drawbacks of economic growth for our living standards and we can observe that there is no a particular answer to that question that whether standard of living is affected with rapid growth rate or not, but I think that economic growth hints to upsurge in living standards of the people because the high economic growth can solve the most crucial and significant problems with learning and well-being or depletion of goods, products and services and these things are far more vital than an disparity or lengthier working hours for labour and working class.

Business Is Booming Essay

The Broadway Cafe needs to take advantage of e-business strategies if it wants to remain competitive. Create a document that discusses the many e-business strategies that The Broadway Cafe could use to increase revenue. Be sure to focus on the different areas of business such as marketing, finance, accounting, sales, customer service, and human resources. PROJECT FOCUS: * Explain how understanding e-business can help you achieve success in each of these areas. A few questions you might want to address include: 1. What type of e-business would you deploy at The Broadway Cafe? 2. How can an e-business strategy help The Broadway Cafe attract customers and increase sales? 3. What types of metrics would you want to track on your e-business Web site? 4. How could you use an e-business strategy to partner with suppliers? 5. How could a portal help your employees? 6. Would you use Kiosks in the cafe? By implementing the e-business strategy into broadway cafà © I believe that this would help us more to success in our small business. Referring to the e-business strategies I would deploy both the B2B and the B2C strategies. The B2B strategy is definitely a helpful tool that we will be used to deal with all our suppliers. This strategy makes communication between organizations easier.it will help us to keep track of our orders , make our data entry easier for our employee, helps to keep track of our shipment and orders.it will help us to have a good management plan as well.another plan that we can count on is the electronic data interchange EDI by implementing this we would be able to exchange private message between our business and other organizations. From another side we have the B2C strategy and it’s the relationship between our cafà © and its customer.by implementing this strategy in our coffee shop we will allow first all internet users to have access to our coffee sh op and have an idea what’s broadway cafà © is all about and second we’ll allow our customer to have access to their preferable coffee shop. This strategy will allow our customer to make online orders in a small or large quantity and it will make our base of customer larger than before. The e-business strategies in our broadway cafà © will definitely play a big  role in the marketing of our cafà © it will definitely help our customers to meet our new products and to stay attached to the old ones and at the same time it will introduce our product to some new customers . the e-business will definitely help in reducing cost through both strategies the B2B and the B2C.these strategies will allow our customers to have access to their products 24/7 and that help us to increase our sales. A portal is very important for our employee, it makes things easier to understand and clear and allow them to make any important changes that has to be done and showed to public.and from another side kiosk will help our customer to get all information they need online,any events or changes or how to use coupons for discounts etc.

Juicy Red Tomato Company Essay

Point of View In Juicy Red Tomato Company case analysis, we will take the company owner’s point of view. Observation Juicy Red Tomato Company (JRT), a tomato grower operating in Florida is paying attention in determining (1) the effectiveness and competence of its organizational structure, and (2) the selection and prolongation of managerial personnel stay in the company. Internal expenditures are getting higher. Also, key workforces are leaving. Lastly, the company is thinking if they are going to spread out its operations. Preliminary Data Gathering (Interview, Literature Survey) Accomplished introductory interviews within the organization and investigated of the produce industry, and company circumstances with related challenges. For 15 years, the business has been operational. During those years, it has full-fledged at a scale of about 5% per year. For its first 10 years of the company’s subsistence, expenses have remained stable. But over the preceding 3 years, costs have increased by 2.5% to 4%. Grounds mentioned by Juicy Red Tomato Company include unanticipated temperature falling off, pests, and augmented labor expenses. Management has had a tendency to come from inside the organization, as long-standing employees â€Å"rise through the ranks†. Over the previous year, many long-term, key personnel have left because they think they have â€Å"no future† waiting for them with JRT. On the other hand, Juicy Red Tomato Company is on the brink for an improved rate of growth. It is by means of potential spreading out of the business. Problem Definition (Research problem demarcated) It seems that there has been a lack of communication between manufacture and operations. Therefore, it can be concluded that at Juicy Red Tomato Company, the organizational structure needs to be more participatory and adaptable. Furthermore, there is a high need for maintenance across all levels of employees, managerial personnel, as well as frontline workers. Theoretical Framework (Variable clearly identified and categorized) In the world of innovation and alteration we are living today, one of the most important supervision challenges is fabricating more flexible organizational structures. According to Participatory Management, Teamwork, and Leadership by Jaime Herrera S., an expert in human-resource development and organizational development, the participatory model of management must be established on ideology and values. It has to go along together with a statement of purpose and can materialize the foundation of a mission statement. An organization calls for an extensive, shared mental picture of the future, a distinctiveness, a standpoint with relation to its goals and how they can be achieved. It also needs a management that knows how to make everyone head to same direction and a leadership that is a propelling strength for change and which derives its power from a philosophy of absolute trust and dedication. Nowadays, organizations are switching their old vertical hierarchical formation with new horizontal or structures that are matrix based. It is connecting traditional utilities through inter functional teams, and establishing tactical agreement with suppliers, consumers and even competitors. In fact, the future company has an organizational structure that is possible to reconfigure so that it can achieve the finest use of teams that are flexible and whose personality varies over time. It is in coordination with an outcome of the satisfaction of market and consumers’ necessities and expectations. Also, it has to consider the performance of competitors and other market aspects. The acquirement of indispensable competencies and the formation of consortiums to make access available to potentials and resources for those who do not possess them are factors that must not be disregarded. The style of management must transform from one that is of control to one that is of training and supervision. The organization should move to the perception of an organization that is without boundaries. The structure of an organization without boundaries is based on a paradigm that lay emphasis on the free movement of individuals, information, ideas, procedures, responsibilities and resources of every type. (S., 2001) Furthermore, there are two classifications of organizational structures that are widely used today: the mechanistic structure and the organic structure. These are developed by Tom Burns and G. M. Stalker who conducted their study of electronics firms in the U.K. in the case of JRT, the most appropriate organizational structure is the organic structure. It is more flexible and more adjustable to a participative type of administration. Also, it is not as much concerned with a clearly classified structure. An organic structure is receptive to the environment so that it can venture on new opportunities. Organic organizations are also called flat organizations. These organizations have decentralized tactic to management. It encourages high employee participation in making decisions. Its chief purpose is to form small enterprises that are independent and can respond easily and immediately to the needs of the customers or to the changes in the business atmosphere. JRT can also apply boundaryless organizations. Like flat organizations, it put highlight on teams. Horizontal hindrances are dispersed by cross-functional teams. It also enables the company to have immediate response to changes in environment. In additional, it allows the organization to lead innovation. Boundaryless organizations are able to form relationships with customers, dealers, and even with its competitors. These relationships can be regarding shared ventures, intellectual assets, monetary resources, or allocation channels. Tactical associations, customer-organization connections and telecommuting can dissolve external boundaries. Production activities are being modernized and become more efficient. In smoothing the progress of interactions with their customers and suppliers, Jack Welch first applied this un-structure. Welch is the former CEO of General Electric. (Supervision, 1998) A boundaryless organization is also a learning organization. This is for the reason that learning organizations necessitates boundaryless surroundings to assist sharing of information and collaboration of teams. When all members play a functional role in identifying issues that are work-related and able to resolve them, the organization is able to cultivate unremitting capacity to adjust and endure in a gradually more competitive environment. Eventually, it will acquire learning culture. A learning organization is able to fit and respond to alterations. It authorizes employees because they gain and share learning and use it in making decisions. To enhance performance, they bring together cooperative intelligence and accelerate creative thought. They are partaking and aligning the company’s visualization of the future. They also nourish the meaning of community and glaring culture. (Supervision, 1998) On the retention issue of the employees, L. John Mason gives some tips in making your employees stay in the company. He got these advices from top executives and Human Resource managers that are very successful. Employers should be given proper care and concern. First thing to keep in mind is to treat them like your valued customers. Hiring and preparing new ones is more expensive than keeping your old workers. Secondly, tell them in a convincing way that they have a major role in the company’s vision. Also, the employee should know his/her workers and their strengths. The employee can put them in the right jobs and positions in the organization. They should still have fun while working. In the case of JRT, the management can come up with a committee of employees that will help utilize retention strategies. This is effective because employees know the need of their co-workers. In additional, the employee should give his/her best to compromise with the employees regarding their needs. Lastly, recognize their efforts. Make employees feel they are appreciated. (Mason, 2005) To make these things possible, appropriate training, improvement, and education should be given to the employees at the right time. Through this, the employer can make them more productive, increase their knowledge, and gain more loyalty. (S., 2001) Creating Of Hypothesis Juicy Red Tomato Company needs to pay much attention in retention of its managerial personnel and also of frontier manufacture employees. Moreover, JRT has to make some development in communication between production and processes. (â€Å"Philosophy Decision Analysis Homework Help†, 2004-2005) Improvement in organizational structures can also make a big difference in the company’s present scenario. Mason, L. J. (2005). Top 10 Retention Strategies: Save Money on Personnel Turnover [Electronic Version]. EzineArticle. Retrieved September 10, 2006 from http://www.ezinearticles.com/?Top-10-Retention-Strategies:-Save-Money-on-Personnel-Turnover&id=94632. Philosophy Decision Analysis Homework Help. (2004-2005). Retrieved September 10, 2006, from http://www.brainmass.com/homeworkhelp/philosophy/decisionanalysis/47971/ S., J. H. (2001). PARTICIPATORY MANAGEMENT, TEAMWORK AND LEADERSHIP: Key requirements for the success of organizations in the twenty-first century. Retrieved September 10, 2006, from http://www.itu.int/itudoc/itu-d/hrdqpub/hrdq/hrdq86/part_ww7.doc Supervision. (1998). Organizing Process Retrieved September 10, 2006, from http://telecollege.dcccd.edu/mgmt1374/book_contents/3organizing/org_process/org_process.htm

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