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The Beer Store

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Submitted By dyanmurray18
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Reflections and Insights: Ch 1 & 2

Part 1: Reflection of Chapter 1 (Week 1)

1. Some of the key point’s chapter one focuses on are, performing an internal analysis, indentifying potential markets and considering potential issues. Performing internal analysis outlines finding your strategic objectives, how capable you are of meeting these objectives and understanding your strengths and weaknesses. Indentifying potential markets is understanding your strategic objectives and figuring out how you can improve. These objectives include, maximizing profits, increasing market share, maximizing cash flow, repositioning the business and acquiring resources. When considering potential issues it is important to understand Porter’s five forces which are the threats of new entrants or barriers to entry, intensity of rivalry among existing competitors in the market, the threat posed by substitute products, the bargaining power of buyers and the bargaining power of suppliers. My strength in relation to this chapter is that I am open minded and search for unique ways to sell products and look for new markets. My weakness in relation to this course is that I don’t have the professional knowledge to jump into a new market. In the future I will apply all the knowledge I have learned in this chapter to my everyday life especially Porter’s five forces. When I’m not a school or work I am working on my band and if I relate this knowledge to my music I can be smarter and more knowledgeable than my competitors. This knowledge will also help me in my career in becoming a sales representative.

Part 2: Insights into Chapters 2 (Week 2)

Insight 1: A monopoly is a situation in which there is a single producer or seller of a product for which there are no close substitutes. A real world example would be Hydro one Inc. This company owns and operates more than 96% of the province’s transmission network as measured by revenue, and its distribution network service territory covers about 75% of the province.

Insight 2: Import and export controls the flow of goods coming from inside and outside the country. A real life example would be the Canadian Food Inspection Agency (CFIA) establishes import requirements for all animals and animal products entering Canada-including domestic pets. The Agency can refuse entry to any animal presented for importation.
Insight 3: Custom tariffs and additional taxes. There are tariffs and taxes placed on some goods exiting or entering the country. A real life example would be someone buying $100 worth of clothes in the USA and bringing them back to Canada.
Goods valued at USD$100, subject to 4% duty and 5% GST, using a sample exchange rate of 1.155:
Total of duty and tax payable: $4.62 + $6.01 = $10.63

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