review 4

Describe deregulation in the transport market
deregulation occurs when the government deliberately removes official regulations that act as a barrier to competition in a market. It is a supply side policy that facilities con testability.
the reason off deregulation is make the transport more efficiency and maintain the transport. For example, deregulation on local bus services in the transport act and then it becomes more efficiency.

Describe privatisation in the transport market.

Privatisation is the process by which a former publicly owned organisation or activity is sold off to the private. there are more information about privatisationhttp://shuimengqiu.blogspot.com/2009/11/privatisation.html

Explain the negative externalities due to increase the transport demand.

The negative externality is when the social cost exceed private cost. With the increase the transport demand, the pollution will be increase lead to reduce the transport sustainability.
there will be more congestion, so the risk of accidents will be growth. For freight transport, it will delay the delivery time and consuming products.

review3

Describe contestability in transport market and describe barrier to entry and there application to the transport market.



Generally if transport market is contestability, there is low barrier to entry.

for example the market of road haulage, couch services and rural bus services are get high con testability,therefore there are low barrier to entry. In the opposite, the air transport market has low contestability therefore it is high barrier to entry.

In monopoly market, there is high barrier to entry, because if a new business want to entry the set up cost is high, also there is some legal barriers for example the new transport market should have the licence from government.etc Thus in monopoly market there is low contestability.



In oligopoly market, the is lower barrier to entry than monopoly because a oligopoly market is a market dominated by a few larger firms. Therefore there is low contestablility as well.

However in a contestable market and a perfect competition market there is high contestability.

Because a contestable market is a market where is no barrier to entry and exit and the costs facing incumbent and few firms are equal.Also the meaning of perfect competition is a market structure with many buyers and sellers, free entry and exit an identical product. So according to the definition of both market it reflect both of them are no barrier to entry , therefore there are high contestability.



Outline the natrual monopoly case for transport

A natrual monopoly is a market situation where a monopo;osthas overwhelming cost advantage.

The natrual monopoly case for transport such as water, gas and electricity. For example there are two bus companies in a transport market, but both of them find put there is low profitability, but the bus company which exit in this market already will win the competition perhaps, because if there is already a bus company occur, the scale of this company is big, so the new entry bus company has low ability to get this conpetition so it will be difficuilt to entry real market. However if this new bus company has another transport market already and run it very well, it might be survive in this kind of competition.

review2

Explain how transport forecasts are made and why?
Transportation forecasting is the process of estimating the number of vehicles or travelers that will use a specific transportation facilityin the future.

the forecasts can basis on the figure,data and trend on transport. For example, the number of railway line prepare to use, the number of passengers satisfy by airport, or the number of ships calling on a seaport. To do transport forecasting, The first step is collection of data on current traffic. together with data on population, employment, cost etc. Feeding data on future population, employment, etc.

Explain the main ways in which transport sector can be described through the data.

For example, we have data which shows the how does consumer think about the comfortable of take bus, if there are more than 50% consumer think it is not good enough, the manager of bus company may make a forecast to solve this problem. In the opposite if the data shows there is more than 50% consumer think it is good, the manager of bus company will make a forecast which is how to keep it.

Outline economic of scale and application to transport.
Economies of scale: where average cost falls as production increases. They are happening because larger firms are able to lower their unit costs.
application to transport relevant the regulation and the transport market, for example barrier to entry, and one reason

of it is to entry a transport market should have licence from government.

review

Outline the characteristics of the main modes of transport?

Road-For road transport,generally it is very convenient and efficient, because it is provide the door to door service. For example delivering goods by truck. It is extensively used in retailing and where 'just in time' are required it is not always the most sustainable mode and has poor public image

Rail- For rail transport, it is convenient can efficiency as well, but it more suit to middle and long distances. on another hand, it more suit to container traffic over long distance. there are interchange limitations for certain types of potential traffic. The capacity of rail is big.

Air- For air transport the speed s very high and it is over long distance and it is very efficiency, therefore, for business and travel, air transport is a good choice. Clearly relevant for transporting time sensitive cargo such as mail and certain types of food products, but is cost a lot. However, it is the least sustainable mode because there are few realistic substitutes.

Sea-For sea transport it is very suit to bulky good. for example oil and containers, can be moved over longer distances where speed is not an important consideration. For example when you send letter, you will choose send it by ship or by air which means normal or quicker.

Explain why transport is derived demand.

Because transport as a service or function is not demand purely for what it it, but for what it can do. people will choose the transport because it can satisfy what are they want to do. for example a person buy clothes on line if she want to get this clothes she must choose a way to post it. therefore she can choose post by quicker way(airway) or normal way(ship).

Explain how to measure transport demand.

Price,price charge is very important , but it depends on the elasticity and different transport modes.

price on substitutes,the demand will change with the price change in substitutes. however we need concern about demand elasticity as well.

income , higher income in passenger will stimulate them purchase more on transport. however it depend on the elasticity and current situation.For example if the interest rate is high they may saving more instead of purchase it on transport.

quality, high quality will help to increase the demand, but if the price is so high, the demand may decrease so it depends.

privatisation

privatisation is the process by which a former publicly owned organisation or activity is sold off to the private sector,generally, it including an outright sale to another company, a management and employee buyout, or the public sale of shares in a new company.

what is the benefits of privatisation?

• privatisation will stimulate the current owner concentrate more on maximise the profit. Therefore they will set some SMART strategies such as increase the consumer services and quality of it which will help to improve the allocative efficiency.

• Privatisation provides a series of supply side-benefits for consumers due to an activity being exposed to the free market.

• privatisation will reduce the government intervention. Normally a nationalised company will effect by the current economy situation as well as some political factors. For example if they meet recession the government will ask them to reduce the price. I think this because government is concentrate more on the social side. Therefore if the company have privatisation, these obstacles will be avoid.
  

The disadvantages of privatisation

• more risks. For example less government subsidies.
• if the company is controlled by the government, the taxpayers will pay if the will have a loss so there s no insensitive to minimise costs
• privatisation nay not necessary encourage the competitiveness, because the national monopoly may become local monopoly.
• cross subsidisation may not apply here.

recommendation on whether to accept Romily's proposal.

In my opinion, I suggest the Barker limited to accept Romily's proposal. Because as the advantages I mentioned which is more than the disadvantages of move into crisps production.


firstly, Romily has been working in marketing department of walkers crisps and has made rapid progress there. From this evidence that I know Romily is experienced and she can do this job. whilst she putting 20000 which is half of her life saving into the new business ,this shows she supports this new business. Therefore with her experience, to build the crisps market will use less time and save money and more efficiency. Also Romily made a decision tree, and it shows the probability is bigger than loss, because the probability of successful is 70% and loss is 30%. However this is just a estimate, there will have some unpredictable change and risks in the future. To produce the crisps, Barker Ltd will use their own potatoes and they will keeping the brand name . this is good for the crisp market because Barker Ltd got main customers and due to loyalty demand therefore these customers may want to try their new product and the demand of crisp is established. The potato price forecast to drop in real and it leading to less attractive to keep sell potatoes therefore move to a new market may recover the business and more successful.

on other hands I have some advices to help Barker Ltd to gain more successful if move into the crisp business. Firstly, increase the level of hierarchy, because the span of control will decrease and the have more communication between staffs and it is easier to control therefore the staffs will be motivated and it will leading to more productivity's. Also to look for some investors from her family member which can help her to start the business easier or put into all of her life saving.

oligopoly-Kinked demand curve

oligopoly is a market structure dominated by a few firms.

Kinkes demand curve is a demand curve made up of two parts; it's suggest oligopolists follow each reductions, but not price rises.

kinkes demand curve can be used to explain why prices in oligopolistic markets are often rigid, or stable for relatively long periods of time. Price Rigidity is a condition where one follows a decrease in price but not an increase in price. This is due to the ability of other firms to match prices with it and it often leads to a kinked demand curve.

Attempt to stay at the same price which is point P shows the fixed price, and the output shows by the point Q. It is assume that a firm increase the price which is above point P , the other firms will not follow to increase the price because the oligopolistic market is non price competition. Therefore, when a firm increase the price the other firms will be able to sell more themselves, attracting customers from the firm that increased the price. Thus cause of this we know the demand is elastic to an increase in price. and it shows the firm's demand curve is AB and its marginal revenue is AC. Inversely, if the firm decrease the price, the other firm will follow, because if they do not cut the price, they will lose their market share for example, lose their customers. This is starts a price war, the result of which is likely to be that all firms lose out. The demand curve below B is inelastic, because it make a sense if the MC curve move up or down and the output will not change. While the marginal revenue curve is EF.

Monopoly

Monopoly is one of the market structure. A monopoly exists when single firm controls the entire output of an industry. The sole supplier of a good for which there is no close substitute.
The feature of monopoly

• single firm


• high barriers to entry


• no close substitute


• price maker
  

The firm produce the output at where MR=MC, charge price at P to achieve supernormal profit.
In competitive market, MC=AR price would be lower at Pc and output wold be higher than Qc. Net welfare for consumer is higher.

In a perfect market, the market equilibrim will be at point X where MC=AR, That's supply meets demand.n price at Pc and output Qc.


The disadvantages of monopoly:

• The monopolist is not producing at the lowest point of AC curve, though produce efficiency is not achieved, allocative efficiency is not achieved either since the price charged to consumers is greater than the marginal profit.
• consumer surplus is being reduced
• monopolist could be monopoly power to create barrier to entry and operate price discrimination.

the advantages of monopoly:

• Dynamic efficiency is being achieved in the long run. firms are able to invest, innovate and develop to protect market position.
• If monopoly benefits from economic of scale, long tun average cost is reduced.

comment of 5business ideas

1. I do not think this is a good idea because the cost of it is very high, and the market is not really good. To keep the fresh of these food in vendin machine is not very easy, they company who do this business need send staff to change the food on time. If the food not sold out, the food are waste. the consumer can not touch the food before they want to buy, they do not know whether the food is good or not, therefore consumer may change their mind to go to supermarket. However, it is very convenient to people who lives very far from market.

2.No firll gym, open 24/7

This is unique business idea, it will be attract a lot of people. Open a gym 24 hours per day and 7 days per week is satisfy lots of demand, because different people has their own different spare time. Sometimes, the gym close at 9 o'clock, for people who have free time before 9 o'clock is good, they can go to gym before it close, but for people who do not have free time before 9 o'clock is not good, because they cannot go when is too late. In another hand, if the capacity of this gym is so small, people will choose the time when they think is suitable, or after them work, they may all go the gym. So too many people will lead to overcrowded. So I think open a gym 24 hours per day and 7 days per a week is good, because it can satisfy more demand and it will encourage more people to join. Also the possibility of overcrowded will decrease. However, I do not think there will be a lot of people go to gym in the evening, because it is not really health to do exercises in night. So, some people may not want to go. the cost will be high as well, for example the electricity. Whereas it depends on different people.

3.Adjusting jeans for pregnant waistlines & back again

This is very attractive products for pregnant, because girls like wear jeans even though she is pregnant or not. Adjusting jeans satisfy the demand of prednant, it is very convenient and not really the out look of jeans. However, it is not very health that a pregnant to wear adjusting jeans, therefore for some of prednant they may prefer to wear other comfatable clothes in stead of atjust jeans.

4.wearable device tracks,fitness data 24/7

I think this products is not really suitable for now, because not every people want to take a small digital thing and record the sleeping time, or some other fitness data. It approciate people who like to know what these information. However. it is very convenient and really useful for some people, but I think it is very expensive as well. I guess it will be more demand of this product in the future becomes nowadays more and more people start to consider their health.

5.interactive piggy band teaches kids about money.

I really like this idea. Because it is good for children to learn the basic financial skills, make them recognise the importance of money. The main consumer of piggy bank is kids, it is very attractive, because children always like to copy the action of their parent, they will interested in how to save money in bank and willing to do it. Also this encourage them to save money, and their parent would like their children have this good habit. However, how to use computer is a problem for children, this is a new and difficult sill to them to learn how to use computer. Also some of children interested in this because of their curiosity, normally, kids can not keep their curiosity for a long time, when they stop to consider on this interesting project, they will stop use the piggy bank. Therefore, how to keep the kids use this bank it is difficult to the company.

Foldio

http://www.foldio.co.uk/index.php

Firstly I need to say Christin is a genius, he is 19 years old and just finished his A level course, but he ca running a business very well. Then I am thinking about me,,,,god....!!!!
Ok, Let's talk about foldio. This is a good products, because after I watched the Verdi, I visited the web side of this products. In this website they describe the advantages as :
1.Curves documents without a crease, creating a smaller, more functional portfolio
2.Paper doesn't curl, unlike cardboard tubes
3.Easy access to particular documents, unlike standard portfolios
4.Foldio holds paper, card, notepads, pens, books
5.Constructed from foam PP, Anti-worp system
6.Durable and comfortable handle
7.Affordable, high quality and stylish product
According to the advantages above, I think this is a good product, and they have a high market share.

marketing:
all the student can be the consumer of foldio. I mean all the student which include primary, secondary, high school and university school students. Because the supplier of foldio have different size of it, such as A1,A2,A3 and A4. This is good, because not only students but also other people,like business man. In another hand, foldio is not very expensive, for example the price of A4 is 19.99 and now is 16.99,this discount may because of the seasonal reason, now student start to go to school, they will think about to buy a new foldio, lower price is more attractive. If Consumer decide to use bulk buying, there will discount more. For instance if a university will buy 1000 foldios, there will be 5% discount of the total price. Also if you visit the website, you will see, the sale of foldio is good, because this reflect buy their sale record, for example, the foldio of A1 case is sold out. So according to the information above we can see the market of foldio is good. ( I think this is why when Christin face to 4 dragons he was very confidence)

Christin ask 80,000 pounds and 15% share to investment in the initial time. He said he will manufacture foldio with the 80,000 pounds. One of the dragon was interested in this product, and he would like to invest it , but the share for him is not very high, so he asked more than 15%share form Christin. Christin accept and increase the share from 15% to 35% which jump a lot.
I think accept this dragon's offer is right, because Christin can gain the invest and manufacture foldio. As we know the market for foldio is good, therefore the profit will be high, and Christin mentioned that he has experience of exports and impors with China, So he knows about the information of China, like the materials in China is very cheap. Therefore he can build the manufacture project in China which is cheaper and thus can save money and he can find a market in China as well. So in this comparesion, 35% share is not really influence a lot.

However, there are some risks of 35% share, because 35% is not a low share for a business. If a the competitors of foldio become more, the demand of foldio will be reduce, becuase consumer can compare the products and change their taste. for example lapdesk is one of the competitor of foldio, because both of them can keep the paper, but foldio do not have a mini desk which can help people writing everywhere. So if the market share decrease, and the marketing is more competitive the profit maybe reduce. Therefore if give the dividends to the investors with low profit, their will be loss of the profit . So depends on different situation.

Depreciation

balance sheet

I am sorry that I did not come today, because I feel really bad. However, I was read balance sheet at home and tried to understand it more clearly.

What is balance sheet actually is?
a summary of a person's or organization's balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.

Balance sheet basis on balances
Assets= liability + shareholders equity
Owned=owed + investment

Assets
Current assets:
Assets that have life span of less than one year. Current assets include cash which you may have in hard cash(currency and coins), current, savings, and investment accounts, and other assets which are not cash is liquidity. Liquidity means how easily you can turns into cash. The second one is accounts receivable, it is how quickly will you customer pay you? How much is it really worth. The third part is stock(inventory), when we talk about stock, we need consider how quickly can you sell it? And again how much is it really worth. The forth assets is pre-paid expenses. For instance paid in advance for future benefits. E.g rent.

Non-current assets
Assets that have life span of more than one year and can be turned into cash in less than one year.
Non-current assets include fixed assets, such as machinery, computers buildings, land and tangible assets. (fixed assets value=original value-accumulated depreciation)

Other assets
There are good examples about other assets patent, copyright and goodwill and actually goodwill might the brand value, all of them are intangible assets.

Then let’s talk about liabilities
What are liabilities? Liability is an obligation of an entity arising from past transactions or events.

Current liabilities
Debts or obligation that are due within one year.
1. Bank overdraft/short term loan \
2. Accounts payable (creditors)
3. Accrued expenses. E.G payroll, interest( interest pay the loan), tax.
4. Taxes

Long term liabilities
Debts or obligations that due in more than one year e.g. Bank loans, leases.
1. Bank Loan

Equity (capital)& Retained Earnings

Equity- Investment from shareholders(paid in capital goes to current assets)
Retained earnings- Profit

easy way to understand what is diminishing marginal return

mind map

Business Homework

What extent is profit a good indicator of the success of a business such as BP?

what is profit?
The positive gain from an investment or business operation after subtracting for all expenses. opposite of loss.

profit is a good indicator of the success of a business such as BP, because, If a company get high profit, which means they have large potential of market share, and customer's loyalty. So it will be attract some investors. Therefore they have high market share and financial guarantee, people will think this business may is good. However,if people just concentrate on how is the profit going on, I do not think it is a good way to measure a business is success or not, I know get high profit is the most important aim of every business. But there are other way to measure a business. For example the communication between employer and employees, the manage skills and the cash flow, all of them are good indicator of the success of a business, because if there are bad relationship between employees and employers how a company can operate normally, it will be demotivate their labour, as well as productivity. So if labour has low confidence and a industry has low productivity how a business can achieve successful? Also get high profit not only in long term , but also in short term, for example in summer the demand of ice cream is very high, so people will spend a lot of money on it, thus the ice cream company will get high profit. Whereas in winter, just a few people will purchase on ice cream, so the company will loss a lot, Therefore we can not measure this business is successful or not.

However profit is a good indicator of the success of a business, but it need related other aspect as well, because profit is not a full picture to a business.

Group Exercise 9

In fact, a company employing child labour is illegal, and we always say that is against business ethic in general, Because the child labour is under 16 years old which means they did not achieve the minimum standard education, and because of they spend a lot of time to work instead of to go to school, it bad for their future,which bring the negative externality to the society as well. Whereas,what is business ethic stand for? Business ethic means a form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment. In my opinion it is difficult to measure if the business is ethics or not.

For example,Nowadays more and more child would like to take a job rather than to be educated , especially the children's family who living in poverty,in terms of this situation, if the child who can find a job it could helps them in the future development of life standard. So some company, like sportswear business, they want to cut the cost so they recruit and use child labour, even though it is illegal, however, if children want and willing to do it may help them to get money, and for those business use child labour can reduce their cost which is achieve their corporate objective. therefore in this situation it good for both of them. But in another hand, Child do not have enough experience or power to be responsible a job which is suitable to a adult, in constract an adult had completed his education and maybe richness knowledge. Also the child labour in some countries is really poor, they work very hard, but their boss still give them low wages, or some managers in a company do not care if they are child or not and give them some massive missions, and because of that some children get ill or keep bad health. So this behavior is absolutely against the business ethics.

I would like set the sport wear business moves production of its trainers to a country that employs child labour in order to cut the production cost at first of the rank. Because to my way of thinking they may employ the child labour to the first floor to produce the materials,and because they want to reduce the cost they would like to pay low wages to those children, and the mission of children there will not be relax. For example some of those child labour in order to earn more money, they may over working, then they eat a little, go back home very late and so on. those elements above will leading the child labour keep a bad healthy and some safety problems also if they make some mistakes they boss can easy to cut their wages , meanwhile they will be easy to fire by their boss. So i think it is not fair for these child labour. In another hand because of child labour is illegally, they may get a bad work condition from this company because this company need hire them and the child labour do not really care about the work condition, but there are some potential problem. For example if they work there for a long term it will be demotivating, also there will be some accident happened cause of the bad work condition.

In summarise , I think the 9th action is first if the rank, the reason of this is which I mentioned above. How do you think of it?

Dilemma 7 The liar

OK, after I read this Dilemma, I think Bernard do the right thing. Because Bernard and Zjamel have a extent love affair, and for both of them believe each other. However Zjamel doubt Bernard has an affair with Ethel, but I think even though Zjamel doubt them in fact she do not want to trust it, because girls always like this. Therefore if Zjamel ask Bernard about this thing, he will not tell her the truth. For Bernard this is like opportunity cost, because if he tell Zjamel about this truth, it will be hurt her, and then they will break up maybe, and cause of Bernard and Ethel just affair which is means they will not keep a long time, so when they stop this affair, Bernard lose Ethel as well. So the resulting for tell truth to Zjiamel is lose two of them. In contract, if Bernard lying the will change the situation. Like the article mentioned about the Nietzsche's dictum that 'lying is a necessity of life' , so if Bernard tell Zjamel he do not have an affair with Ethel, it makes Zjamel feel better, and then their heart will become more close maybe. This is like trade off, Bermard tell the lie to Zjamel but he keeps Zjamel to stay with him, but he lost Ethel, at the end of the article, they mentioned about that Bernard and Ethel have got board of affair, so it means they stop their affair. Bernard and Zjamel still together. So i think Bernard did a right thing.

The law of diminishing return

After I read Siyi's blog, I decide that I will write about the law of diminishing return as well.

In economics, diminishing returns refers to how the marginal production of a factor of production, in contrast to the increase that would otherwise be normally expected, actually starts to progressively decrease the more of the factor are added.

For example the land, it leading to restrict the production, unless increase the land and improve the production then the performance will be getting better. How is the law of diminishing return relative marginal cost marginal cost is the change in total cost resulting by one extra output per unit.Thus once the diminishing return start, the marginal cost curve slop upwards,
because when the diminishing return achieve the obtain points it start to increase, for example, there are one people use computer to produce a product, therefore when he stop use computer, the product will be stop to produce. Then the industry will recruit one more labour, thus when the first staff go to rest, then second one will continue to produce, therefore the output will be increase. However if the industry still recruit more labour to work in this industry,For instance if there are 3 people use the computer together, it increase the output, but the marginal cost will increase as well, because the company will spend more on the labour salaries, and also the third one may get less salaries than the first and second one, so he will think it not fair and demotivating too.

Transport Economics

What is transport means? Transport is the movement of people or goods for various personal and business reasons. Transport as a derived demand, people want transport because it enable them to do something, for example, business require goods transport in order to carry out activities within their supply chain( supply chain means is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer)
The mode of transport
1. Road-private car
2. Road-bus
3. Rail
4. Air
5. Ferries

Now let’s talk about the factors determine whether a manufacturer should use road or rail transport for distribution of its goods.
I think it depends on different manufacturer. for example for some industries, the road transport almost use van, but the capacity of those car is not enough for transport a lot of goods, so the supplier may need cost more to transport the goods again and again. Opposite, if manufacturer choose rail transport may will solve this problem, because the capacity of rail is quite big, therefore, it reduce the cost. However, sometimes, car transport can satisfy different places demand, but rail can not, because rail transport has specific destination, and road transport is more convenient, it can go to the place which rail transport can not arrive. In another hand, the risk of rail transport may worse than road, because use rail transport will meet some natural problem, like when they transport some goods very expensive and cause rail transport use the train, so the capacity of train is big, so they transport all the goods at once, but if they meet some natural problem like earthquake, they may lost all the goods, but if they use road transport, the natural problem will be better, people can avoid it. Thus I think it depends on different situation.

Explain the main factors affecting the supply of transport services for a transport mode of your choice

I would like talk about rail of transport services.
what are the factors might affect railway,let's see the characteristics of it. At passenger transport side, provide a speedy means of transport over middle to long distance, and into and out of congested cities and towns. Also it can carry large volumes of passengers in an environmentally acceptable way and is able to compete favorably with air on certain domestic routes. At the fright transport side comparative advantage over road for bulk shipments of basic products and for container traffic over longer distance. there are interchange limitations for certain types of potential traffic. Increasingly used fir intra-EU loads. After know these information above that I think infrastructure may affect it, for example if there are some damage of rail, the rail transport services can not operate, also if they meet some natural accident,like coast,Niagara and so on,those accident will stop the rail and it need a long time to fix the rail. In another hand, the factors of economic also can influence it. For example , with the income of people increasing, people may think about to use rail or not, some of them think about maybe rail will be more quickly than other transports services, because their are lower congestion and may lower price, and then they can save more money. Also they may think about, use rail transport services may waste the time, because almost use railway to transport some things need full capacity, if not the cost of railway will increase, so they need to wait, and also there will be some risks, like the natural accidents.So according to the opportunity cost, they may choose use car or another transport services. Also maintain rail, how to operate rail transport will effect it . etc.

I am not sure about my answer is right or not, I tried to understand the question and answer it,Mr Chris can you give me some suggestion.

Economic:How world's biggest ship is delivering our Christmas-all the way from China

Let's talk about the benefits and the cost of use the biggest ship to transport!
benefits:
I think there will be less pollution for unit carried and massive the capacity, because they can transport a lot of containers by a big ship. Also it will be reduce the price , because the cost of transport will decrease for instance the biggest ship just need transport thoes goods at once so it save the cost. low labour cost as well, because there are only 13 crews which this case study mentioned. Also low fuel cost per container carried.
costs:
Build a biggest ship must cost a lot, also if a ship is very big, the speed will be reduce because when they want to pass some canal, for example Suez canal, they will use a lot of time. Also ore railway line needed. If they want to save money, the capacity of this ship must be full.
Then, I would like talk about if UK trade with China.
If UK trade with China, they can spend less money to import, also when they transport some products from China to UK, they can creates jobs for transport. Also it leading to lower cost push inflation, because the products from China is cheap which reduce the price of goods. However, trade with China might reduce the manufacture job in UK.

Problem 7 The unexpected exam: Has teacher been Hypocritical?

This is a interesting article which talk about Logic. Now I am going to discuss the question 'Has teacher been Hypocritical'

As Patricia said there will not have exam between now and the end of the term, which seems like the teacher was joking, he not really want to held a exam. Normally, this behavior like hypocritical, because he said that doesn't mean he will do that things, just because those words can make people to achieve other aims. I think teacher do this because he want to motivate his student to work hard, like Bob said in this case study. Also this idea possible is a real test,just do not need paper and pen, only need these students to thinking, and then it can reflect how those students logic thinking. Bob and Pracitia here are different example, Bob thinks they will have exam and he wants to read all text book before the test day, I think this is a little bit cheating, because short term memorise do not mean can remember for a long time, past the exam doesn't mean it will be fine in the future, so for teacher simple thinking of Bob is a result for this testing. In another hand, Pariticia is a good example for use logic thinking to pass the exam, because she thinking about teacher might be have a joke with them, teacher does not want to have a real test, just according to this way to receive the information of his students which is how will they thin of this question and deal with it. Also, if it a no paper exam, the result of particia is good, because she use logic thinking to solve the question.

Therefore, if teacher hypocritical or not depends on what does the teacher think about, and basis on it the teacher must want to motivate students to work harder harder and harder.!!!!!!!!!

The costs and benefits of High Speed Rail.

costs of High Speed Rail:

• the cost on build and maintain a high speed rail is very expensive.
• high speed rail has limited function, because people can not walk or ride a bicycle on high speed rail it just use for the car.
• very noisy, it effect people who live next to the high speed rail.
• Drive car with high speed will leading to accident
• use a lot of land

benefits of high speed rail:

• high speed is a benefit as well, because more convenient.
• huge capacity f car
• low congestion
• save time
• good for transport

10 solution, End Britain's oil addiction

I do not think end Britain's oil addiction is a good idea, because it influence the economy all over the world and Britain can not live without oil. We know that oil is a scarce resource, and we can not use it for forever, it must be finish for one day. But now we can not stop to use it.

but in another hand, maybe in 15 years we can exchange the or to electricity, which is mentioned by Shai Agassi. if this will be come true, this is a business for Britain, because they can produce electric car, and sell it, and then they make a lot of revenue from this, and also the oil is save by them. However to invent this new technology car need a long time, and we can not calculate how much money we will spend. Also ,in fact, to end oil addition the other countries which apply oil will effect by this decision, for example, if Arabia can export oil, their economic will decline, because export oil is their main trade which can earn a lot of money.

Anyway, this idea is possible to become reality in the future, because with the information age, nothing us impossible. yeah!!

How can EF increase the profit

EF is the biggest personal English Educational institution, and it include language study, study in aboard, travel and courses. Nowadays more than 5o countries have EF, which means the scale of EF is very big.

Now, I would like suggest which can help EF to get more income.

• set up more symbiosis with other countries agency, which include tourism agency and educational agency. EF has a fantastic advertising, they have video, poster and so on. But expand the scope with those agency will increase the demand, because agency like a advertising.
• Nowadays EF has running A level course, this is a good point which add a new types education in EF. Because almost EF is a language school. Because of EF do not have a lot of experience when they establish A level course just for 1 year, therefore, they do not attractive people. However, EF is quite popular of the world, So I think people believe they have a good quality of education,and some of them may want to try to study A level here. In my opinion, to expand the size of A level course is quite important, because it is like if they have a lot of student study in there, it is more attractive, but if just a little, consumer may think maybe something not very good in this school, and of course they may change their mind. Thus I think to expand the size of A level course is quit important.
• signet EF logo on bag, note book, pen, pencil box, and anything that can signet, because consumer like those things which may make them feel confidence, like I am from this school, and also people will see EF logo when they go to shopping with that bag or others. Therefore it like a people to people advertisement which can make more people to know what is EF, what does EF do.etc.
• pay attention to their competitors, because now more and more educational institute has established and some of them have the same quality of EF, therefore know their competitors very clearly can help EF cut the cost and get more revenue.

these 4 advises above are my own thinking I hope it is useful and if you have more idea please tell me.

Hurbank plc report

Hurbank is a long established British producer of luxury clothing and accessories.At the start of 2008, Henry,who is the Chief Executive in this company,was asked by Board of Directors to consider cutting costs by relocating Hurbank plc's shirt production from cell ton, in the north of England, to China. In this case study, they give us some data which I will analyse below.

From Appendix A, it seems like the cost of Cell ton factor is more than the benefits. Because according from this data, it shows the trade union membership is 80% of all employees which means trade union is very powerful, this is a good thing for the workers, but I do not think it is good for their boss, because if the power of trade union is very strong, the boss of this company may spend more on them, for example they may ask boss for higher wage or higher work condition and so on. But in this appendix also has a benefit which is the labour productivity compare to five years ago is 40% more, which means they may get more profit. However, overall of this appendix, I do not think Cell ton factory will cut the cost, and also this might be the cause of why they want to relocation of their factory.

let's have a look Appendix B. In this appendix it shows Unemployment in the region of the factory in China is 14% which is very high and that is good for Hurbank to recruit those people with lower price. there is a data shows the average annual pay within Chinese region is 2000 pounds which is very low. in another hands it shows forecasting percentage of shirts returned by customers due to defects if factory is basedin China is 1%, this is a good news 1% is quite low. However, forecasting lead time to retailers is 4 weeks which is take a long time and I do not think retailers want to wait their supplier for a long time. Also the exchange rate of pounds will decrease 18% which means Hurbank will loss some money when they exchange their money to Chinese currency.

Anyway In appendix C, it shows Hurbanks plc get more revenue than before which is a good news and it tell us relocating in China help them save money and get more revenue. these graphs shows in another page approve this point. In appendix D and E are shows the revenue goes up if they relocate the factory in China.

Overall, I think if the company relocate the factory in China they will save a lot of money on employees, land, material, and so on which means they will get more revenue. But before they relocate it , they should do more research to prove if this decision is right or not.

Extra work

I am not sure about how to write this topic for a right way, after I read Nara's article, it gives me some enlightenment.

I think it is possible to use a scientific approach effectively in a subject that deal with human beings.
Economic exist everywhere and every time. In our life when you leave your house and close the door, you will meet the economics. In this information age, economics is essential for our normal life, especially for our communication. But, for some people who live out with economic society, for example for some tribal society, they do not need money, they do not know what is money. therefore they might do not need think about what is economic and will not have communication with economic. In other hands, like use psychoanalysis, it possible to deal with human beings, because when you know somebody very well, when he/she talk about something, according to her/his face, you will know what will he/she say at the next step. Also about biology, it can measure the action that people might to do. etc.

all the content that i mentioned above are use different way to reflect that it is possible to use a scientific approach effectively in subject that deal with human beings, but I do not think it is easy to carry out, there are some problem they will meet in the future. But I am not sure what those problem are.

Assess the extent to which Sainsbury's plan for 2007-10 likely to enable it to meet its corporate objectives

In this case study, they mention about 8 plans for 2007-10, there are those plans below:

• space growth-10% new space by march 2010.
• development of grocery and non-food ranges
• cost-cost saving of 155 million pounds in 2007/08.thereafter ongoing cost savings to offset half our operating cost inflation.
• channel growth through online and convenience expansion.
• profit-profit growth flowing through at a percentage rate in high single digits.
• sales growth-total additional sales of 3.5 billion pounds by March 2010.
• cash flow neutral over 3 years.

Because this is a team homework , Nara wrote about Space growth. Here I would like talk about Sales growth- total additional sales of 3.5 billion by March 2010.

I think this plan is likely to enable it to meet its corporate objectives, because Sainsbury has a big market, and it has a good reputation. the demand of it almost is elastic, they catched the customer loyalty that helps them to improve the sales volunm easier. For example they can open more stores which can saticfy more demand, and also expand the advertisement also can let the demand increase. Also they have the experience for how to sale and how to attractive consumers, it is good for enhance the sale. By the way, for a big company they have enough finace to produce more products, also increase the economic of scale which can help the sales growth.

However, additional sales of 3.5 billion pounds by March 2010 is not very enough to achieve this aim. Because in terms of Sainsbury, profit is not that changeable, they almost get the same profit because they are a supermarket. 3.5 billion is quite a lot, and just use 1 year may is not very easy. Just think about if they face to some current situation of economy is not good, for example recession, they may not can get the profit as much as before. Also they nee pay attention to their competitors, because if they reduce the price or got a better customer services ,more and more customer will go there and purchase on those products. In other hands they need do some market research and make some SMART objectives in order to achieve it. Therefore they may spend a lot of time. Also the material price may increase, so it depends on different situations.

At the end, I still think sales growth is likely to enable it to meet its corporate objectives, the reason of that like I mentioned above.

case study,question 2

Functional objectives are the overall aims and mission which in order to achieve the corporate objectives. In this case study, one of the corporate objective channels. Actually, there is a functional objectives that the case study mentioned, which is to extend the reach of sainsbury's brand by opening new convenience stores. Well, let's talk about the functional objective. openning new convince store, for example 24 hours supermarket which can help increase the demand. Also if the sainsbury has more stores it can enhance the reputation of this brand, Sainsbury will become more popular, because if you can see sainsbury everywhere, it will be attractive, and then the demand will increase. Indeed, Sainsbury could become a franchiser and they can seek some franchisee. From those franchisee, sainsbury can get more income of entry fee, also depends on the brand franchisees can get revenue more easier or get more revenue as well. Well I think this is a good correlation. However, to opening a new stores not very easy,because they need spend time to look for the land where is a good place that can build a new store. Almost the function of the land include high population, good environment, and so on. But id all functions are achieved which means it will be very expensive to rent. Also opening over demand stores that they need care about is every store of sainsbury has a good reputation, I do not think so .. Therefore they need think about those problems and if they want to solve them, it must be waste the time and money.
Anyway, I would like introduce my opinion which is they can make a limitation that the amount of how many store should be open and what is the different size of each shop. If they make those rules the problem may easier to deal with. Because there will not have over demand stores, and some of them will not waste, also a limitation of the size of store will save the money for example do not need spend a lot of money to maintaim some facilities or easier to layout and so on.

meeting the developing world

Sir Richard Branson said developing countries will lead the world economy out of recession and that returns on investment will be higher there for the foreseeable future.

What I am thinking about that is catch a opportunity from the crisis is a successful entrepreneur's skill. like Richard said"the worse the crisis, the greater opportunity."

what is the opportunity in recession for a entrepreneur,for example some products will reduce the price when is recession, because that time the demand had decreased. therefore, some of people buy a lot and stock them after the economy recovery, they will sale it again but with higher price. So they can earn more profit. in another hand, when the world face to recession, a lot of people loss their job, so, some people know not every people who loss their job are not useful, then they may recruit them with low wages but those people achieve the standard that they need. etc.

But the problem of catch a opportunity from recession is the risks, they might get loss if they make a wrong decision , because in fact we can say recession is means the economic is negative and not stable. therefore, entrepreneurs need spend time to think about is this opportunity help them a lot or just do nothing.

10 solution of rebooting Britain-revive the export economy

Export means sell the product and services to other countries.
Nowadays not only Britain face to recession, but also all over the world meet this problem. Therefore we cannot measure revive the export is good or not, thus I would like talk about the advantages and disadvantages of if revive the export.
There are some advantages of producing manufactured goods and export them. Because of the government wants promote the injection,which including the government spending, export and investment. Then they should producing manufactured goods, because it is cheaper than import those goods from other countries,actually they can save money. Secondly, the market of those goods may become competitiveness, because it can motivate the market share growing, which may let more people to know it, and demand of this goods will increase, Also exports can help the international trade of Britain. Thirdly, because of the government wants to growing with an injection of investment, therefore , they can get the invest from other countries, which means they can get more capital to produce more products,then the demand can be satisfied.
However, because of the recession, manufacturing some products it's quite difficult to start. This because they need to know what are the appreciate to produce, are there a lot of competitors and so on, all of these question that they need think about, so they will spend more time, more money as well. Where they can buy the materials, if they have, that's fine, if they do not have which means they need buy materials from other countries. In fact recession is globally, therefore, the price of materials is more expensive than before, so they will spend more. They can borrow money from other countries which can help them to produce more products and then export. But this is not good for the future, because they will receive a lot of national debts which may give them lots of pressure in the future.

Anyway, revive the exports economy is a solution which can help rebooting Britain.

Examine the problems that might emerge if Sainsbury's does not set SMART objectives

Firstly, what is SMART stand for?
S means specific
M means measurable
A means agree
R means realistic
T means time bound

after we know what is SMART mean, now, let me examine the problems that might if Sansbury's does not set SMART objectives one by one.

1) if the objectives are not specific:
let's have a look of the plan for 2007-10, in case study, they describe their plan very clearly, for example, space growth, there are 10% new space by March 2010 will be build. Actually, this example reflect that this is a specific objective, therefore if they have a specific objective that means they can make a specific strategy which can achieve it. So they may save money and time , which means the problem of this might be, they will get loss if they do not have a specific objective.Also they do not know how many time they need, they might waste the time on some thing which are not useful. Also it may demotivate labours, because staffs do not know what should they do and how to do, and also they do not know the value if they do this non-specific objective.

2)if the objectives are not measurable:
If the objective is measurable, it means that the measurement source is identified .Measurement is the standard used for comparison. For example, what opportunity cost means to me may be different compared to what is means for you. So if you know and you can measure which means you may can manage it. because if a Sans bury can measure,it will encourage and motivate them, measurement will tell us when we need do what, and maybe how to do, but if the objective is not measurable, which means we can not get a encourage and motivation, the productivity may decrease and the benefits above are difficult to achieve.

3)if the objectives are not Agreed(same as Achievable)
Objectives need to be agreed , if the objective is too far in the future, you’ll find it difficult to keep motivated. Also because Agrees objectives need manager and coordinate are involved in setting the targets, therefore if it not agreed it might waste the time to setting a target.

4)if the objectives are not realistic
If the objective are not realistic which means they might be difficult to achieve the objective and then may have conflict with other objectives. I think it will be waste the money and time. by the process, the staff may demotivate because of the time and so on.

5)if the objective are not Time bounds
if the objective are not time bounds, they may become more difficult to organise the finance because sans bury will not have a specific plan of future and they do not know how much money they will spend, for example they said sales growth- total additional sales of $3.7 billion by march 2010. If they do have a time bounds they will make a plan if they achieve this objective what will they do, if not what Will they do as well. therefore just opposite id they do not have a time bounds objective.

at the end, hope you can give me some suggestion if you think i am not right of the content above, thanks

Chapter 1 my version(50 words)

Functional objectives are set for each division or department of a business.Also the functional objectives will use to ensure that the business can achieves its corporate objectives.
corporate objectives are design to enable a business achieves the aims and mission.
A strategy is basis on a specific objective, strategies are the medium to long term plans that how a business achieve their objectives.

10 key points

1. functional objectives basis on corporate objectives.
2.functional objectives is an individual department of business.
3.strategies basis on objectives.
4.it is important to make sure that all members are understanding the overall objectives.
functional and corporate objectives are SMART:
5. specific-very clear and easy to define
6.measurable-quantifiable( e.g to reduce the market share from 40% to 25% in next 2 weeks.)
7.agree-manager and coordinate are involved in setting the target.
8.realistic-no conflict with other objectives
9.time bounds- basis on the accurate time (e.g build 10 news stores)

10. business strategies is a medium to long term plans.

Niall Ferguson-- reduce the national debt

According to the news, that I can know, if UK wants to reduce the national debt, the government needs to increase the tax and cut the government spending. therefore the government will get more income which may help the treasury to increase their financial assets. Then the national debts will decrease.
advantages:
For a long term, a low national debts is good for the development of domestic economic. Because less debts will reduce the pressure of the government, they do not need think about how to return the debts anymore. Then they can pay more attention on their own economy. Also reduce on national debts classify the economic of this country is not bad, it may growth which is better than before. Also reduce the debts may save more money, because the government may not pay the interest rate, and nowadays, the exchange of English pounds is depreciating, which means they will pay more money to the country that lent money to UK.

disadvantages:
In another hand, reduce the national debts is not a good idea, because if some crisis suddenly happened, for example global recession, the government can not deal with it on time, cause they do not have enough money. also they can not spend more to encourage their domestic business,such as invest some small firm, help some company which face to bankrupt and so on.
For instance, in 2012, UK will hold the Olympic games, for the government this is a quite big leakage, so they need borrow money from other countries.
But for the content above depends on the different countries. some rich countries are not really a debtor, they might be a creditor. otherwise for some poor countries, their treasury may become empty, they need help from other countries. Also it depends on different situation of different time. For example, nowadays, all the world face to global recession, America which is the richest country,but they borrow more than 10 billion dollor s from China ti deal with the problem.
conclusion:

At the end, I think reduce the debt or not depends on the different situation of different countries, because for different time reduce the national debts will bring the different effects for them, even though the good or bad effects.

May Ball

Torquay is a beautiful city, I like it, even though the environment or citizen there.

This is a good experience to joined the ball, actually, this is my first time to join a ball like this. Every body is cool, and some body are very tall , hehehhe....

Mr Chris why you not to go,,,so good, you need to see how a fantastic dancer Robin are........

now,,,May ball was finished , I start to revision very very hard:)

after exam

Today we finished our business exam, I thought unit one is easier than unit 2, firstly because of the time and then I think because of my knowledge of unit 2 ,But I was try my best, hope I can get a good grade that I think it is satisfy, maybe B or C, and unit 2 I just hope higher than U, because I know I will get a bad grade of unit 2.
Now I will prepare the next exam, and I will try my best to get a maximum marks.
Mr Chris, I am miss you so much...:)
I want to continue to study business at next term.....

answer

1. b
2. d c
3. b
4. a
5. b
6. a c
7. a
8. b
9. c d
10. b c
11. c a
12. d a
13. d a
14. a
15. d
16. c b
17. d c
18. c d
19. d b
20. b
21. c
22. d b
23. d b
24. d c
25. d c
26. d
27. d
28. b
29. b
30. b d
31. b
32. a
33. d a
34. d
Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?
Demand is how much is bought of something based on a price. It indicates how much it is needed or wanted.
Quantity demanded is the total amount of goods which individuals want and are able to buy. This is important in economics, because supply and demand decide how much of a good will be bought and sold. It is the amount of goods that people want to buy at a given price.
Demand would be the whole curve. Quantity demanded is the amount of the good consumers are willing and able to buy at a certain price. If the price changes, you simply move along the demand curve.
What lead to each of these change:
1. demand :
 income
 taste
 the price of substitute and complements
 interest rate
 consumer population
 seasonal/time
 currently economic situation
 consumer’s confidence
2. Quantity demanded
 division of labor
 change in price
 income
 taste
 the price of substitute and complements
 interest rate
 consumer population
 currently economic situation
 capacity
 productive efficiency

Therefore if income rises the SLOPE (gradient) of the demand curve changes...to the right.，

Income effect the demand elasticity, because demand of consumer is basis on their purchase ability, for example, if income per capita reduced, they may do not want buy some luxury goods like before. But if the goods is essential ,like food, or drink, there are not a big change in demand. so change in income leading to change the demand, but depends on price elasticity of demand.
Let’s talk about the elastic curve:

1. Perfect elastic:
generally, the good which has the perfect elastic demand which means the demand still change even though the price change or not. So here, I think the demand curve will not change.

Elastic:
Also this depend on the types of goods . For example, when income rise the demand of inferior good may reduce, so the demand curve may shift to the left, and if the goods is luxury goods, the demand may shift to the right, and normal good may expansion.


3. Perfect inelastic:
Not change, because the demand of this goods is inelastic which means does not matter the price change, but I think he size of change in price will effect demand.

4. Inelastic.
Depends on different types of goods, but I think it most likely to contraction, some of then will shift to the right, for example Giffen goods.

Happy birthday to dear Mr chris and siyi

happy birthday Mr chris,,,hope you every thing will be fine for example,,,,lose weight.....get more handsome,,,get a good hair style.......
thanks for your helping this and last year,I am very glad to meet you ....you are my favourite teacher,,,hahahahahhahahaha....................
siyi,,,,,Happy birthday,,,,,same day as Mr chris.....good good......ok,,,,,,,,
siyi,,,,beautiful girl...hahha
siyi hope you happy everyday..
find a boyfriend when you 17 yeah????
okok,,,tonight,,I will cook delicious food for you.......hahaha
加油啦，，，，，一起加油！！！