...Collaborative Consumption: Is it a disruptive business model? Introduction Airbnb (www.airbnb.com) started in August 2008 as a booking service letting private, spare space around the world, a marketplace that connects people who need temporary living spaces, to people who have extra spaces. The extra spaces could be a spare bed, a room, an apartment or even a villa. In five years’ time they now have over 10 million nights booked, have over 300,000 listings worldwide, operate over 33,000 cities in 192 countries and have over 600 million Social connections. This idea is called by various terms as “collaborative consumption”, the “asset-light lifestyle”, the “collaborative economy”, “peer economy”, “access economy” or “sharing economy”. Like Airbnb, one can rent automobiles, kennels, rides, solar power, toys, books, art, fashion, movies, sugar and spices, food, storage, lending, bartering, education and even maids, friends and nannies ! Google, General Motors, Avis, BMW, Toyota, Barclays, Ford, Radiohead and many other big brands and organizations have all jumped into the ‘collaborative consumption’ bandwagon to supplement their business strategies Objective of study Understand and explore the reasons behind this consumer behavior. What made it possible now and not earlier? What are the regulatory and other challenges? Why are large organizations in mainstream business investing in this model? Is perceived as a threat or an opportunity? Is it an attractive industry...
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...the literature.Yet differences in opinion in the academic literature leave the door open for different choices that can compromise the resulting rankings. The New GCI is generated in a two-stage process. First, the weights for aggregating individual indicator scores to an overall country score are obtained using panel data for over 130 countries and up to 7 years (2001–07).The weights obtained from estimating the model are going to be kept constant over time. Additional years of data will be used to check the stability of the model over time. Second, the index score for a particular country in a given year is calculated by summing its weighted indicator values. The New GCI model uses principal component analysis (PCA) to aggregate individual indicators (or categories of indicators).The premise of the PCA method is that within a “conceptual category,” indicators are highly correlated and related to the underlying phenomenon that is being measured.Within the area of microeconomic competitiveness, the degree of correlation between indicators is very high.The New GCI model thus applies a two-step PCA procedure. First, a separate aggregation is computed for COS and for each of the four components of the NBE. Second, these five components are aggregated into an overall score for microeconomic competitiveness.75 Figure 7 provides a sample...
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...about the Clinic (i.e., what's the good news and what's the bad news)? Analyze in the aggregate and for each product line, as appropriate. If an analysis applies to more than one product line, you may combine product lines in your discussion for convenience. Use of bullet points are fine and, to the extent possible, encouraged. Profit (total) variance = actual profit – static profit Revenue= Member months x premium We see that the overall profit is -$329,366 than what was expected . What caused this variation? When it comes to revenue, ideally HMOs would like to see enrollment high and utilization low along with costs down making profit high. The main contributors to profit variances are: Revenue issues, Cost issues, or BOTH. Revenue – Cost= Profit. HMOs make money through member months (enrollment) x premiums. • The main issue with total profit variance is insufficient revenue from PC Commercial and increased costs from the other three product lines due to high utilization from which created negative variances causing decreased profits. • The static budget expected margin was 12.7% The actual profit was significantly less than static budget with the actual total margin cost being at 2.7% Revenue Variance: • The PMPM rate increased in PC comm. the biggest provider, which impacted its revenue through decreased enrollment. Its enrollee amounts were less than the aggregates. SH comm. also had increased its PMPM rate but also increased revenue through number...
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...Case 1 SPI states that it has a total of seven operating segments, which are shampoo, cosmetics, diapers, paper towels, Jazzy Juice, Blasto Energy Drink, and fruit & granola snacks. These seven items can be considered operating segments, because each one of these meet the three requirements of operating segments. The three requirements are: 1) It engages in business activities which it may even earn revenues and incur expenses; 2) Its operating results are regularly reviewed by the public entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; 3) Its discrete financial information is available. All seven items have revenues and incur expenses according to the financial statements. The auditor finds a press release from the chief decision maker and states that, “On page 6 of the annual reports of your (SPI) annual report, you (chief decision maker) identify seven product lines.” Finally, all the information is available because they are in the annual reports. According to FASB Accounting Standards Codification 280-10-50-11: Two or more operating segments maybe aggregated into a single operating segment if they have similar economic characteristics and if they are similar in all of the following: Nature of products and services. Nature of the production processes. Type or class of customer for their products and services. Methods of distribution. Nature of regulatory environment if applicable. After...
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...I will be happy to assist you, based on the information it is clear that the company does indeed have different operating segments. This was determined from ASC 280-10-50-1; within the codification there are three characteristics that the company must have. For clarity I have posted them below. 1. a. It engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity). 2. b. Its operating results are regularly reviewed by the public entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. 3. c. Its discrete financial information is available For SEC reporting purposes we find guidance from ASC 280-10-50-11 regarding aggregation criteria as well as 280-10-50-12 which sets forth the qualitative thresholds. The nature of the entire business in which the company operates in is very similar from the type of customer they serve to the service they deliver everything is very standardized. So after careful analysis I have determined that the aggregation criterion is met. The threshold requirements have been met by certain operations in the company; upon analysis of the information provided it was determined that Big Islands Georgia, Big Islands North Carolina, Big Islands Washington, Still Water Thrills Orlando, Island Adventure Cove, and Still Water Thrills Charlotte all exceed...
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...can be aggregated. Provide support for your initial thoughts regarding aggregation of operating segments and identify additional information that may be needed in order to reach a conclusion. According to ASC 280-10-50-(11-13) Two or more operating segments may be aggregated into a single operating segment if they are similar in the following areas: • The nature of the products and services • The nature of the production processes • The type or class of customer for their products and services • The methods used to distribute their products or provide their services • If applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities According to these guidelines I feel like SPI can aggregate Jazzy Juice and Blasto Energy Drinks, I think this because even though their gross margins aren’t very close they are...
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...Aggregate Demand and Supply Models ECO/372 Aggregate Demand and Supply Models As the group of economic advisors to the U.S. President, the team has goals they need to achieve. As a team we need to analysis and make recommendations on the following areas: unemployment, expectations, consumer income, and interest rates on how it is affecting the aggregate supply and demand. The team also needs to evaluate each area and make recommendations to make improvements to the economy. The following information will be the team efforts to pull together the best evaluation and recommendations to the economic issues. Unemployment Today’s unemployment rate is at an all-time low but for the government to keep the unemployment at the low rate there are some issues that need to be addressed. Part of the issues is to continue training of employments so they can be employable. With working all employees to keep them trained and up-to- date with the new job opportunities will help the economy grow and be stronger. One recommendation would be to keep people fully employed. The following model would explain a good plan and good business cycle to keep people employed. (A Model of the Macro-Economy: Aggregate Demand and Supply, May) This would be one goal of the economic advisor team to reach so that the U.S. government can be strong and prepare for a strong economy. In the case of the unemployment issues the Keynesian perspective would be a good recommendation due to it’s a short-term...
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...The Role of Aggregate Demand and Supply Shocks in a Low-Income Country: Evidence from Bangladesh Omar H.M.N. Bashar The Journal of Developing Areas, Volume 44, Number 2, Spring 2011, pp. 243-264 (Article) Published by Tennessee State University College of Business DOI: 10.1353/jda.0.0095 For additional information about this article http://muse.jhu.edu/journals/jda/summary/v044/44.2.bashar.html Access Provided by Bangladesh University of Professionals at 05/29/11 5:42AM GMT THE ROLE OF AGGREGATE DEMAND AND SUPPLY SHOCKS IN A LOW-INCOME COUNTRY: EVIDENCE FROM BANGLADESH Omar H.M.N. Bashar Deakin University, Australia ABSTRACT This paper explores the relative role of aggregate demand and supply shocks in affecting the output level and inflation rate in a low-income country vulnerable to various economic shocks. The study uses Bangladesh data, and following Cover et al (2006), employs a modification of the BlanchardQuah (BQ) approach, in which the two shocks are allowed to be correlated. Strong evidence is found for the hypothesis that aggregate demand and supply shocks are interrelated in Bangladesh. For the case in which causality is assumed to be running from demand to supply shocks, it was found that an independent supply shock plays significant role for fluctuations in inflation, which was absent in the standard BQ model. The results suggest that a tightening of monetary policy may lead to an adverse effect on the long-run growth potential and some supply-side...
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...2013). It is the third largest exporter of base metals after China and Germany (Indexmundi.com, 2013). We can make the assumption that this makes U.S. a net importer of base metals. Base metals are mainly used as (a) input by manufactures producing consumer goods and (b) for infrastructure projects. They themselves are not demanded directly by consumers. If global prices of base metals were to go up, in theory, the U.S. will first see an impact on the "input" side of the economy (figure 7). Production costs will go up and producers will pass this one to the end consumer (P1 to P2). Raw material price increase will shock the supply to shift left (AS1 to AS2) and negative output gap increases (Y1-Y* to Y2-Y*). With increased prices, aggregate demand will go down. The AD curve will shift down (AD1 to AD2). This will result in a fall of real GDP, increase in the negative output gap (Y3-Y*) and prices may fall somewhat to P3. If there is no supply side change, typically, increases in the negative output gap will cause inflation to go down. The only time inflation increases with increasing negative output gap is when the AS curve shifts left and AD shifts down as well. To substantiate this, the following data has been presented as below, with main emphasis in the 2007-2008 periods: 1. Figure 8a (Research.stlouisfed.org, 2013 and Databank.worldbank.org, 2013) shows that from around 2008 the U.S. has increasing negative output gap. 2. Figure 8b (Databank.worldbank.org,...
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...Learning Team Reflection: Production and Cost Analysis Heather Bosack, Iris Cost, Joey Piester, Jennifer Stephenson, and Girlean Taylor ECO/365 February 11, 2013 Jeffrey Lesson Learning Team Reflection: Production and Cost Analysis For our team there were many different experiences that were share in reference to the objectives for this week. Girlean explained that she understood that productivity is the amount of goods and services being produced and that the cost of production is the expenses that occur during production of those goods and services. She also explained that these expenses include fixed cost, variable cost and total cost. The team member shared that she works in security where services are provided to banking institutions. The company has a type of monopoly where they contract other companies for security services and this monopoly has altered competition on the supply side. In this case, the prices are a fixed so that the company neither make nor lose money. Jennifer shared how law of diminishing marginal productivity and the difference between fixed and variable cost both would be important to a big corporation such as Wal-Mart. At Wal-Mart headquarters managers from each location would look at the information to determine the schedule for each employee and how many employees would need to be working at a certain time. The managers would also need to look at all variables to change the cost of an item in a store. This team member shared that she looks...
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...prices and wages are flexible both upward and downward. Use the following short-run aggregate supply schedules to answer the next question(s). 11. Refer to the information above. If the price level unexpectedly increases from 100 to 125, the level of real output in the short run will: A. rise from $500 to $560. B. fall from $500 to $440. C. fall from $560 to $500. D. rise from $440 to $500. 12. Refer to the information above. In the long run, an increase in the price level from 100 to 125 will: A. increase real output from $500 to $560. B. decrease real output from $500 to $440. C. change the aggregate supply schedule from (a) to (c) and result in an equilibrium level of real output of $560. D. change the aggregate supply schedule from (a) to (b) and result in an equilibrium level of real output of $500. 13. Refer to the information above. If the price level unexpectedly declines from 100 to 75, the level of real output in the short run will: A. rise from $500 to $560. B. fall from $500 to $440. C. fall from $560 to $500. D. rise from $440 to $500. 14. Refer to the information above. In the long run, a fall in the price level from 100 to 75 will: A. decrease real output from $500 to $440. B. increase real output from $500 to $620. C. change the aggregate supply schedule from (a) to (c) and produce an equilibrium level of real output of $500. D. change the aggregate supply schedule from (a) to (b) and produce an equilibrium level of real output...
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...On Our Way to Inclusive Growth By Cesar B. Bautista Philippine Daily Inquirer 3:53 am | Monday, March 4th, 2013 http://philippinedailyinquirer.newspaperdirect.com/epaper/viewer.aspx The Philippines has achieved considerable progress in tackling corruption and upgrading competitiveness, which makes it earn the respect of world economists, thanks to the high confidence enjoyed by President Aquino. From the “Sick Man of Asia” in the past, the country is now considered as the possible “Tiger Economy” before long. The President has stated that in the second half of his term, the government will focus on providing opportunities for the creation of quality employment and livelihood, since these are the country’s pathway out of poverty. Building on the substantial improvements so far reached by the Cabinet economic cluster, the various business organizations have reiterated the need for sectoral economic planning of products and services, which have the potentials to be globally competitive and where the country can benefit from the global economies of scale that will meet the challenging targets of generating 14.6 million employment and livelihood until 2016. The Philippines will become a global player in a broad field of products and services, which will benefit its resources (both human and natural), financially, technologically, socially and culturally. It will provide the seed of economic renaissance, which was proposed by the combined local and joint foreign business chambers...
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...organizational culture appropriability construct DefinitionSave to FavoritesSee Examples The values and behaviors that contribute to the unique social and psychological environment of an organization. Organizational culture includes an organization's expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid. Also called corporate culture, it's shown in (1) the ways the organization conducts its business, treats its employees, customers, and the wider community, (2) the extent to which freedom is allowed in decision making, developing new ideas, and personal expression, (3) how power and information flow through its hierarchy, and (4) how committed employees are towards collective objectives. It affects the organization's productivity and performance, and provides guidelines on customer care and service, product quality and safety, attendance and punctuality, and concern for the environment. It also extends to production-methods, marketing and advertising practices, and to new product creation. Organizational culture is unique for every organization and one of the hardest things to change Organizational culture is the collective behavior of humans who are part of an organization and the meanings that the...
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...banks lent too much money to consumers bought too much house. Once the market crashed, the stage was set for a recession. Many factors affecting the aggregate demand curve had declines. As mentioned, home equity declined, as well as the stock market. This decrease in wealth decreased consumption and consumer confidence leading to lower spending. As consumers cut back on spending, business confidence also fell with additional decreases in consumption and also investments. Additionally, foreign GDPs were also declining leading to a decrease in exports. The changes in these variables all caused a shift back in the aggregate demand curve, lowering the GDP. Attempting to counteract the recession, the Federal Reserve pumped money into the economy, increasing the nominal money supply. As the value of the dollar decreased, interest rates were kept low, allowing the exchange rate to remain favorable for exports. Additionally the government increased spending by way of stimulus packages for banks, automakers and tax rebates and incentives. These changes in variables caused the aggregate demand cure to shift out. However, the effect of the exchange rate, government spending and increases in the nominal money supply were small compared to the loss of wealth and confidence of both consumers and businesses. There were also changes in the aggregate supply curve; increased...
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...expect their real income to increase, they spend more of their current income (saving less), increasing current consumption and the aggregate demand curve shifts rightwards. Conversely, when people expect their real income to decrease, they spend less of their current income (saving more), decreasing current consumption and the aggregate demand curve shifts to the left. Figure 1.2 Source: Jackson et al, 2011 The aggregate expenditure is the sum of expenditures on consumption (C), investment (I), government purchases (G) and net exports (NX). AE = C + I + G + NX Figure 1.3 graphs aggregate expenditure. Where the aggregate expenditure line crosses the 450 line, indicates the Gross Domestic Product level. Gross Domestic Product (GDP) is the total market value of all final goods and services produced in the economy during a specific period (Jackson, et al., 2011). Figure 1.3 Source: Jackson et al, 2011, p184 The foreign exchange rate refers to the value of the Australian Dollar against a particular foreign currency. A rise in the foreign exchange rate of the Australian Dollar means Australians pay less to import goods from overseas, so imports would be expected to increase. A rise in the value of the Australian dollar also means foreign countries pay more to import Australian goods, so exports would be expected to decrease. Aggregate expenditure would decrease in...
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