...Supply and Demand When we look at supply and demand there are many factors that can sway both the supply of the product and the demand of a product. As we look into the article “Olive Oil Prices: Drizzle and Drought” we will examine what is driving up the cost of olive oil here in the U.S. and how it could benefit the production and sales of olive oil here in the U.S. Nearly half of the global production of olive oil comes from Spain because of their ideal climate for olive groves. High levels of production (increase in supply)or a surplus had pushed prices over the last nine years to an all-time low. Over the last three months an absence of rain has created a shortage that could possibly reduce the global output (supply) by nearly 20%. Prices of extra virgin olive oil have already increased dramatically over the last three months. Stocks leftover from last year are helping to keep prices lower, but last years over production is adding to the problem because olive tree were weakened by the strain and are not able to produce as much fruit this year. The demand of olive oil globally has increased tremendously. For example America is the third largest market with demand growing almost 6% a year for nearly two decades. The increasing demand globally with the shortage of supply will continue to drive the price of olive oils up. This increase in demand could help California’s olive growers capture more of the market. So in conclusion there are...
Words: 340 - Pages: 2
...course, in this new business era L.L. Bean has evolved and now does much of its business online. “Bean's golden rule was to "sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for more". His model, still used today, was to build customer loyalty by providing exceptional service” (Pulido, I.) Supply Chain “Distribution operations are located in Maine and employed nearly 2,500 people during the peak business season in 2014. Over 15 million packages were shipped during 2014, with over one million packages going out during our busiest week. The hub of the L.L.Bean distribution operation is a one-million-square-foot, state-of-the-art facility with the capacity to hold 10 million units. Manufacturing facilities are located in Brunswick and Lewiston, Maine, where over 350 employees produce such iconic products as the Maine Hunting Shoe®, the L.L. Bean Boot and the Boat and Tote® Bag. Customer demand for the iconic L.L .Bean Boot remains high, with a unit demand of nearly 450,000 pairs in 2014” (LL Bean, 2015). As you can see, there is a heavy burden on LL Bean’s supply chain. LL Bean’s presence includes retail and outlet stores in the United States, Japan, and China, and sells worldwide via the internet, while continuing its catalog sales in over 160 countries. (Cooke, J., 2011) To manage this...
Words: 1211 - Pages: 5
...AT&T Global Operations Management AIU Unit 5 Assignment Abstract Addressing the significance of quality management and quantity with the global context of an organization that transports goods and/or services globally is what this paper will discuss. Also would this help update operations and attain efficiencies between operating departments and are there any main concerns? AT&T There are many organizations that transport goods and/or services globally, one specific organization is AT&T. The background of AT&T and the components of its supply chain are an important part of the company. The components of the supply chain can have potential problems but there are ways to solve these problems. Quality management within a global context is important. Some companies have employed an enterprise resource planning system to help reorganize their operations and attain efficiencies between operating departments but certain concerns have to be addresses before it can be implemented. An organization that delivers goods and services globally is AT&T. AT&T has an organization that is in charge of exchanging and constricting goods and services nationally and internationally which are the AT&T Supply Chain and Fleet Operations. This organization is also in charge of ensuring quality and value for the customers (Suppliers, 2012). Formally known as American Telephone and Telegraph Corporation, or AT&T Corp. is as old as the telephone itself and in 1875 the inventor Alexander...
Words: 1702 - Pages: 7
...(Shell) ability to be more competitive with other integrated oil majors in the global supply chain. Shell’s goal is to be “the world’s most competitive and innovative energy company” (Shell 2013). First, the macro-processes involved in the supply chain of Shell are introduced. Forecasting techniques were researched to see how these can be applied to demand management in Shell. Third, business process integration was investigated to improve the supply chain in Shell. Finally, operations and production strategy was synthesized to respond to the changing demands in the modern global environment. Discussion The Macro-processes Involved in the Supply Chain of Shell Company Chosen and the Reason. The company I chose for this assignment is Shell. The key reason is I work for Shell. I have access to global supply chain managers who will help with this assignment. I contribute to the planning operations in the global supply chain. My contribution is the production of petroleum liquids for refinery processing. Gas produced is sold directly to customers as fuel. I believe a lot was learned during the review and analysis of Shell’s global supply chain. Shell’s Problem. Shell uses a global scorecard to monitor its yearly success. Figure 1 shows the scorecard for 2012. As a global energy company, Shell did not perform well in delivering the oil and gas required to fuel its refineries or supply raw gas to its customers. As a result, their total shareholder return (TSR) was below...
Words: 3684 - Pages: 15
...Supply, Demand, and Pricing Supply, demand, and pricing have lasting effects on all products and services globally. If a product is in high demand (sometimes due to trends, prestige, or even necessity) the producer is able to jack prices for higher profit because consumers are willing to buy. However, if consumers are unwilling to purchase items for a higher price and are instead able to substitute with other products or services, than producers may again adjust prices so as not suffer from lack of sales. The wine industry, an ancient industry, has seen significant changes simply in the last 50 years. The ability to create wine has been honed internationally and is used as a steady exportation product for many countries. For example, every state in the U.S. produces wine. This independence in wine manufacturing and the few limitations placed on its trade, have created an overproduction of wines globally. Winemakers and governments have attempted to restrict production in an effort to raise prices but with little success. This overabundance of available wines has affected the wine industry in two ways: booms in premium wine demand and mainstream wine supply. With newly wealthy individuals of newly wealthy countries demanding only premium products, there has been a steady increase in the demand for first-class wines. As expected, winemakers have raised prices on ‘top shelf’ products knowing that consumers with the ability to pay top prices will do so. Like most basic supply...
Words: 601 - Pages: 3
...gas production Ownership – Government (64%) and Private Sector Market Capitalization – fifth largest publicly traded energy company in the world Current Strategy: • • To be the world's largest oil producer by 2015 Plan to invest US$ 224 billion by 2014 – Drilling Rigs, Supply and Special Vessels, Production Platforms • Social Responsibility: economic, social and environmental improvement in Brazil Brazil’s Growing Role in Tomorrow’s Energy Market Global consumption will see a paradigm shift from developing economies to emerging. Global Energy Consumption 1990-2035 Future energy consumption will be driven by emerging markets (non-OECD) demand: – Emerging economies will consume 38% more energy than Developed (OECD) economies in 2020 and 67% more in 2035 Growing concerns over environmental risks Increased regulatory pressure for more safety and environmental regulation in drilling as well as distribution of oil Oil reserves are focused in geopolitically volatile regions The largest oil discoveries have come from Brazil’s offshore, “pre-salt” basins Pre-salt fields are estimated to hold 100 billion barrels of oil, enough to meet all US needs for more than 14 years Steady growth in Brazil’s energy demand Global challenges: – – – – – – Brazilian Market: Challenges • Government Ownership: Need to balance profit making with social responsibility and job creation. • • Massive capital requirements Lack of capacity for achieving oil field maintenance and growth...
Words: 1000 - Pages: 4
...across 80 brands and a number of variants under the very brand name. Coke as it is called today has been named as the most valuable brand now for the last 12 years. It has developed to be successful with more than 1.4 billion beverage serving sold each day. Some key aspects to look on Coke are as follows. Key aspects to look upon:- The demand The supply The elasticity of the product The market for the product Demand: Being the 4th the most admired brand around the world, the demand for this beverage has been increasing day by day and year by year to the very extent. The demand being so much is because it is found in different variants (100ml, 375ml, 500ml, can, 1litre,2litre,etc…) satisfying the needs and the preferences of all types of consumers. One of the Surveys on Public presents that the strong taste of Coke makes 70% of youngsters,and adult males refresh and feel current though only 40% of ladies prefer the Coke.Coca-cola as a brand is also elastic priced attracting all forms of customers from different parts around the world, considering the affordability (price willing to pay by each)of its customers globally with a broad range of pricing. Coca-cola has always been on top despite having one or more substitutes, needless to say because of its pricing strategies and a broad range.The expectation on the price rise of coca-cola in the future is not listed, but all...
Words: 864 - Pages: 4
...ANALYSIS OF TESLA COMPANY 22 TESLA FIRM FINANCIAL PROJECTIONS AND FIVE FORCES ANALYSIS 24 PRODUCT 30 PRICING STRATEGIES AND APPROCAHES 30 PROMOTION STRATEGIES 31 PLACE AND DISTRIBUTION STRATEGIES 33 ORGANIZATION 34 IMPLEMENATION PLAN 34 EVALUATION 36 RECOMMENDATIONS AND CONCLUSION 37 APPENDIX 44 Tesla Company Marketing Program EXECUTIVE SUMMARY This paper will mainly focus on the analysis and investigation of Tesla’s firm overall marketing strategy and program. According to a number of research based studies and reports, it is clear and evident that Tesla Motors firm is an American company that mainly designs, manufactures, and sells electric cars and electric vehicle powertrain components in various regions globally. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. Furthermore, Tesla’s stock has risen substantially in recent times according to a number of research based studies and reports. It is clear and evident that in 2014 TSLA stock climbed to about seventy percent. Tesla Motors, Inc. was founded in Silicon Valley, California. Tesla Motors firm was founded and established in early 2003 especially by Martin Eberhard and Marc Tarpenning. The firm then later went public on late 2010 after raising around $227 million due to the sales of its cars and products in the society. Tesla firm is also the first American car company to go public since Ford Motor Company in early 1956. Elon Musk is the current...
Words: 12497 - Pages: 50
...COMPETITIVE STRATEGIES AND GOVERNMENT POLICIES Competitive Strategies and Government Policies PLACE INTRODUCTION HERE – WENDY Solar energy is one of the cleanest energy sources available and some of the richest resources in the world. With modern technology the solar energy can be harnessed for many different uses from providing electric, to heating and cooling, even heating up water for domestic, commercial, or industrial use. The solar market faces both challenges and opportunities; the industry is working to scale up production of solar technology. Solar energy can be stored in what they call solar cells which are then made into large panels. By catching the solar rays the sun puts out including the suns heat it gives off it can be all used to provide all of us with the resources we need each day. Some utility-scale solar plants can store energy produced for use, and set it to be used after the sun sets in the evening. PLACE RAYKEYIA’S INPUT HERE Since the solar industry is now a big market that is propagating at a rapid past, it has also had a great impact on the economy. Companies and manufacturers in the USA that can be identified in this market are First Solar, Sun Power, United Solar Ovonic and many others that helping in the trend of solar energy. According to SEIA.com, the Solar Foundation's Solar Job Census 2012, there are more than 119,000 solar workers in the U.S., a 13.2 percent increase over employment totals in 2011. These workers are employed...
Words: 1153 - Pages: 5
...dedicated to increasing success. To maintain the growth and profitability of the Briggs and Stratton Corporation, two products that I would like to add to the line of engines that the company produces is a lawnmower engine that can be interchanged into a generator and Gas Off, a new product that removes the gas smell from hands and clothes. Briggs and Stratton is the world’s largest producer of gasoline engines. Therefore, introducing a mower engine that can be converted into a generator would add on to their innovative ideas. Consumers would be able to have one have a mower to cut grass as well as a generator when electricity is loss due to weather or for outdoor use. This product would also do well globally. The second product, Gas off, also would do well globally because almost everyone has spilled gas on themselves or clothes. To have a product that will erase the smell would be beneficial as well. The other benefit of Gas-off is that it will be available in wipes and liquid as well. The consumer will also be able to purchase the product in many different store chains. Whenever a new product is being introduced, there are important steps that need to be taken in order to see of the products will be accepted. For instance, it is important to know if there is a need for products that are being introduced. Secondly, is there as place for the product in the global market. The three methods that I used to identify my target market are focus groups, feedback or surveys...
Words: 4190 - Pages: 17
...has successfully incorporated this perspective. The 2014 Annual report states that IBM’s strategy continues “to be one of innovation and a constant drive to deliver higher value for our clients”. This global strategy is positioned on three pillars: data, cloud, and engagement. Pillar 1 - the company will use data to transform industry and professions. It reads: “We are making markets by transforming industries and professions with data”. According to IBM data is increasing capability, rapidity and diversity in an exponential manner and is emerging to be a novel global natural resource. It has embraced data as the new heart of competitive advantage. Pillar 2 - cloud, offers high-value results and has experienced growing client demand that has caused speedy growth. In 2013 revenue grew by 69% and the run rate for this service doubled that of 2012. Revenue grew by 60% in 2014 to $7 billion. This pillar states that: “We are remaking enterprise IT for the era of cloud. Pillar 3 - engagement,...
Words: 741 - Pages: 3
...rotation(employee is allowed to move from one specified job to another) and job enrichment/ employee empowerment. • Psychological components- it suggested that jobs should include the following characteristics, to wit: skill variety, job identity, job significance, an autonomy and feedback. • Self directed teams- a group of empowered individuals working together to reach a common goal. • Motivation and Incentive System-Money often serves as a psychological as financial motivator. It can be in the form of bonuses, profit and gain sharing and incentive systems. 2. Enumerate and discuss at least 4 supply chain strategies. • Supply Contracts. In traditional supply chain strategies, each party in the chain focuses on its own profit and hence makes decisions with little regard to their impact on other supply chain partners. Relationships between suppliers and buyers are established by means of supply contracts that specify pricing and volume discounts, delivery lead times,...
Words: 1406 - Pages: 6
...BMQ # 352823 Questions: Choose an organization delivering goods and/or services globally. Provide a background of the organization Fully describe six components of the organization's supply chain. Examine the potential problems related to each of the components described Explain the approaches of the organization for solving the problems. Response below: TITLE NAME COURSE DATE Introduction Supply chains are the process of moving merchandise; beginning from buyer orders, to raw materials, to supply, through production; thus, final distribution of the merchandise to customers. Every company has a supply chain of some differing degree. Dependent upon organizational size and the category of manufactured goods. This supply chain system obtains components and supplies, changes them into finished products, and then distributes them to consumers. Background of the organization Wal-Mart serves its customers over 200 million times per week, at approximately 8,692 retail units, beneath 55 singular banners, within 15 different nations. As of fiscal year 2010, sales were approximately 405 billion dollars. Wal-Mart employs approximately 2 million associates worldwide and is ranked #1 on Fortune's Global 500 list (Wal-Mart, 2010). Despite the global recession, including high gas prices and higher unemployment, Wal-Mart's international sales continue to increase. Wal-Mart's CEO Michael Duke told shareholders, "Global markets are "becoming an even bigger and more...
Words: 1397 - Pages: 6
...annual sales revenues stood at US$56 billion. In fiscal 2003, a year in which most computer makers lost money due to slumping global demand for PCs, Dell saw its revenues jump by US$5 billion to US$36 billion, made US$2.8 billion in operating profit, and gained 2.3% in global market share. For half a decade Dell was the market-share leader but in 2005 it lost its market-share lead to one of its main rivals, Hewlett- Packard (HP). Approximately one-third of Dell’s sales are made outside the United States. Nearly 65% of its revenue originates in North and South America, 23% in Europe, the Middle East and Africa, and 12% in the Asia and Pacific region, a region that includes Australia, China, India, New Zealand and Japan. Dell is experiencing rapid increases in sales outside of the US. For example, in 2006 and early 2007 sales in Brazil grew by 84%, 24% in Germany, 93% in India and 33% in China. Dell’s global competitors include HP, Lenovo, Acer, Fuji-Siemens and Gateway. In Australia and New Zealand, Dell holds second position in the PC and server markets (with a 16% share) behind HP (22%), but ahead of Acer (12%), Toshiba (8%) and Lenovo (6%). Dell credits much of its strong performance in a tough environment to a cost structure that is the lowest in the industry. The cost structure is in part the result of Dell’s global manufacturing and supply chain management strategy. While it outsources some operations, for example,...
Words: 1985 - Pages: 8
...burgeoning population of middle class workers, Asia as a whole, and China and India specifically, have fueled this pricing explosion. Research shows that the development of these former 3rd world countries is responsible for a large increase in global pricing due to the high demand for steel, oil, and agricultural products. One major industry which has been affected by this shift is the steel industry. The demand for steel along with the decreased supply has caused prices to increase by 25 to 45 percent in the US market. (Van Der Schans, 2007). Several factors have coincided to deal a damaging blow to the US steel market. Firstly, China and India have become major players in the steel industry, accounting for the consumption of over 25 percent of the worldwide steel supply. Cooney found that, “China has become both the world’s largest steelmaker and steel consumer.” (2006). China’s ability to dictate the market has led to a global shortage of structural steel, and as most people are aware, when the supply dwindles and the demand increases, higher prices are inevitable. The increased demand in China and India has caused these countries to redirect their exports in order to meet their own domestic demands. Some Chinese and Indian suppliers have halted exports completely;...
Words: 2513 - Pages: 11
