Business Decisions Related to Trade and Specialization You Would Recommend Based on the Effects of Future Global Conditions
Larson Inc. Business Decision Recommendations
Course of Action in Light of the Credit Market Evolution
The contemporaneous society is facing the challenges of the internationalized economic crisis. At the global level, most organizations have postponed investment projects and have developed and implemented more prudential approaches to business operations. Extrapolating this trend, it would be advisable for batteries manufacturer Larson Inc. To reduce its expenditures and instead focus on saving its financial resources. This period of economic downturn is beneficial for internal audits of the organization, such as:
Analyses of efficiencies and inefficiencies regarding positions, operations, machineries and so on Assessment of the means in which the past strategies have achieved pre-established goals
Assessments of internal budgets and their adjustment based on current needs.
In other words, just like most other economic agents, it would be advisable for Larson Inc. To delay any investment projects and instead restructure the company in a more efficient manner. This recommendation is not only constructed on the similar trend observed at a global level, but on the realities of the capital market. In this order of ideas, the credit market reveals decreasing values in most shares traded. This means that when Larson would attempt to gather resources through the issuing of shares, it would not be able to sell its stock at real and adequately valued prices. In a context in which the company was to use the respective funds to grow, and the share’s value would increase, the value of the dividends would also increase meaning that the “interest rate” on the stock is far too costly. Additionally, the number of interested investors continues to gradually decrease.
2. Trade and Specialization Recommendations
In terms of trade, a first recommendation is that of using Germany as a distribution market, rather than one for production. Germany is a highly cost inefficient region. In 2008 for instance, the German employees were even registering higher incomes per capita than the American employees. This translates into a situation in which operating within the European country is not a sound business decision. Yet, since the products here are well sold, the company should continue to sell to this market, but move production.
In terms of the new destination for the manufacturing operations, Larson Inc. ought to consider China. Aside the cost efficiencies this region would offer, it would reveal yet another benefit — that of constituting a large consumer base, with a population of over 1.3 billion, most of whom could be perceived as prospective buyers of the Larson batteries.
Also in terms of trade, it would be recommended for the company to conduct several analyses in order to identify the countries with the highest demand for batteries. India for instance, with its numerous technological applications and in its quality of hosting most of the global mobile telephones — would be expected to be a large consumer of batteries and could as such constitute a desirable trading destination for Larson Inc.
Relative to specialization, this aspect is more delicate, but it would be advisable for the company to become more specialized in the type of batteries most popular within the regions in which it operated. Considering a situation in which Larson Inc. became a batteries supplier in India, it would be advisable for them to specialize in mobile telephone batteries.
3. Evidence and Potential Changes in the Recommendations
The recommendations previously made are all based on the features observable at the international level.
a) the recommendation to save rather than invest is based on the generally unstable state of the global economy
b) the recommendation to not raise funds through the issue of debt is based on the general contraction of the credit market, revealed by the decreasing values of the traded shares and by the decreasing numbers of interested investors
c) the recommendation to take the manufacturing of batteries outside Germany is based on the fact that operating within this country is highly inefficient from a cost standpoint
d) the recommendation to move manufacturing operations out of Germany and into China is based on the emergence of China as a leading economy which provides global players with cost effective, skilled and easily adaptive labor force
e) the recommendation of selling the batteries into China is based on the fact that the country is the largest one in terms of population hosted, with a total of 1,338,612,968 individuals (Central Intelligence Agency, 2010).
Despite the sound reasoning behind the recommendations made, fact remains that they could require modifications, based on future necessities. A first example in this sense is constituted by the possibility that the loyalty of the German customers would be lost as the manufacturing plant exits the country, which means that the customer base would have to be enlarged. A second example is constituted by the necessity to change product specifications and focus more of mobile telephone batteries upon penetration of the Indian market.
2010, the World Factbook — China, Central Intelligence Agency, https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html last accessed on May 21, 2010
The Outsourcing Institute, China Trends and Opportunities, http://www.outsourcing.com/china_trends/index.html last accessed on May 21, 2010
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more