Introduction To Opportunity Cost Commerce Essay

Introduction To Opportunity Cost Commerce Essay It is a very powerful concept when someone has to make a decision to select a particular product or making a choice. In simple words, opportunity cost means choosing or making a best decision from different option. When one has to make a decision in between various actions to select only one particular work at a time is called opportunity cost. Example: From a economist point of view when a kid has to make a decision to choose between ice cream and chocolate at a time. When the kid has got a limited pocket money of $10 only and ice cream cost is $8 whereas chocolate cost is $15. So, the kid will have to select ice cream only as the kid has only limited cash in hand. It is also an example of scarcity too. In this example, there is scarcity of money. NEEDS AND WANTS According to Macpherson (1977, p.27) defines needs and wants as The problem of needs and wants is both an ontological and a historical problem. NEEDS The basic requirement to satisfy human beings desire is included in needs. Needs are a basic necessity which are used in daily life like food, water, clothing, medicine, shelter etc. A mans survival is dependent on these needs only on the primary stage. In a modern society the basic needs keeps on changing according to the society standards. In case of modern society the basic needs of a man may differ from clothing to electricity, food to running water, shelter to furniture, medicine to electronic items etc. After talking about primary needs, secondary needs is the another topic which are needed to be explained. In case of secondary needs the necessity can be regarded as luxury. Like an automobile is a necessity in The United States. As the country grows to progress and development, the luxury too gets into necessity item for the people. At earlier stage cars could be only affordable by rich people. But at present, many of the middle level income people are also willing to afford it. Growth in a countries economy helps one to go beyond his or her limits. WANTS Wants include needs but it goes beyond that. Before we get deep into wants, we should understand the gap between needs and wants. According to Heibroner (1962, p.135) makes the statement that Consumer demand is no longer driven to essentials but hesitates before a whole range of possible luxuries and semi-luxuries. It means that now a days, consumer demand are unlimited and its no longer situated in a stage where consumer use to select between luxury and semi-luxury products. Due to the growth in economy, now most of the middle class people are also willing to afford luxury products. In a few years back was just a dream for them to afford the price for a luxury product. SCARCITY It is a stage when the wants are not satisfied up to the satisfaction of people. When the production is not enough or sufficient, to satisfy the demand for a particular commodity, the problem of scarcity arises. The scarcity keeps on changing from one society to various countries. As the society keeps on developing, the standard of living also gets higher. The demand also keeps on increasing according to the economy of a country and the satisfactory level of the society. So, the resources get scarcer to produce goods and services for the satisfaction of wants. OPPORTUNITY COST According to (Pearce, 1983, p.322) opportunity cost can be defined as opportunity cost can only arise in a world where the resources available to meet wants are limited so that all wants cannot be satisfied. In simple words, we could say that the wants and needs of human being are unlimited. But the resources available in the market are limited. And so, it is not possible to satisfy each and every wants and desires of human being. And thus, the topic opportunity cost arises in a world. Choosing the best alternative when there is scarcity for a particular product, it can be measured in opportunity cost for the satisfaction of the needs and wants. The value of the next best alternative which is available in the market is termed in as opportunity cost. ADVANTAGES OF OPPORTUNITY COST Opportunity cost provides a benefit of choosing one option over another. It may be personal or business related, opportunity cost arises when we select one option over another taking into consideration that the selected option has better advantage comparing with the another option. It helps one to study each and every facilities and satisfactory level of various products similar in nature, when the resources are limited. Opportunity cost provides us awareness towards choosing the best alternative product, which helps one to make fully informed and to make appropriate planning and decision making, which helps to maximize ones resources. Price of a product plays an important role in considering opportunity cost, as it allows us to consider and compare prices between each alternative product and to select the most effective and satisfactory product from the option. DISADVANTAGES OF OPPORTUNITY COST Opportunity cost consumes a lot of time to calculate the features, price, budget, success ratio, satisfactory level etc of a product and many times we do not have time to evaluate the benefits of every product to choose the best alternatives. The biggest disadvantage of opportunity cost from a economist point of view is that the opportunity cost is not considered in accounting process of any company accounts. And so, the cost of opportunity involved in a selection of a particular product and the alternative product which was not selected, cannot be taken into accounts for future studies at all from a financial point of view. PRACTICE OF OPPORTUNITY COST IN REALITY Opportunity cost is calculated everyday by a human being who has the desire to purchase any product available in the market. Whether it may be implicit or explicit cost, it is considered into opportunity cost itself. An example of opportunity cost in case of financial sector is as given below:- A decision maker must study the impact of opportunity costs deeply before making the decision. If we consider a situation of an investor, whether to make investment in stock market or mutual fund investment. If a person makes an investment of $20,000 in Mutual Fund Investment of any company for one year, then he thinks what if he had put the same $20,000 in stock market rather than mutual fund investment. Perhaps he may expect a return of 20% on stock, and then the investor has an opportunity cost of $4000.Mutual fund may only provide a return of 10% ($2000). Then the investor has to consider the risk taking capacity, if he goes directly with stock market. As stock market value keeps on changing from time to time and there is always a risk of losing the money. In case of mutual fund investment, investor finds it more safe and secure for his money. There is very less chance of losing the money as compared with stock market. Hence, the investor may take the decision on the best alternative to invest in after considering the opportunity cost. PRACTICES ADOPTED BY ORGANIZATION IN RELATION TO OPPORTUNITY COST Opportunity cost is very important concept in financial sector. Especially in business progress related strategies. Opportunity cost helps one to examine the details and to make a profitable deal in a business purchase and selling process. The opportunity cost is the value mentioned to the next best choice. When an organization makes a decision to purchase an asset over another, there the organization is transferring the opportunity cost offered by another asset which was not selected. From my personal investigation on use of opportunity cost in business world, opportunity cost helps the organization to manage time with fully efficiency. Opportunity cost helps the organization to manage time with full efficiency. Even the business organization has to analysis which productive material should be purchased or not. Evento study the profitability level of various materials before purchasing it. It helps in a better decision making. Examples of opportunity cost in Business organization: A company has $2 million to spend on a project. The company can decide to invest the money for advertisement purpose of the particular product at the time of launch in the market. If they decide to invest the money in production and to buy machinery and all then the opportunity cost gets lost for advertisement purpose. And if they decide to spend the money on advertisement purpose, then the opportunity cost will be the organizations ability to produce commodity with more efficiently. Another example for business organization is that an organization owns a building in which it operates its function and so, it does not have to pay any rent for the office room space and all. But from economist point of view the business owner might have kept the office space for current use itself or the office space might have given for rent for money. So, that the owner could have earned from the rent but if the owner will not consider or provide the office space for rent then there is a loss in business expenses according to economist view point. But in real life accountant of a business organization cannot provide any loss expenses due to opportunity cost in any accounts. Even though opportunity cost is not considered by the accountants in case of financial accounts and all. But it is very much important for a manager of the business organization to consider opportunity cost in relation to business strategies. A business manager must consider opportunity cost in calculating the opportunity expenses in the organization for analyzing the profitable deals available in the market. It also helps in utilizing limited resources efficiently. CONCLUSION The value of the next best alternative which is available in the market is termed in as opportunity cost. It means choosing or making a decision from different options. From a economist point of view when a kid has to make a decision to choose between ice cream and chocolate at a time. When the kid has got a limited pocket money of $10 only and ice cream cost is $8 and chocolate cost is $15. So, the kid will have to select ice cream only as the kid has limited cash in hand. It is also a better example for scarcity too. When we talk about opportunity cost, we must take scarcity, needs and wants also into consideration. As, the basic needs to satisfy human beings desire is included in needs. Needs are a basic requirements which are used in daily life like food, water, clothing, medicine, shelter etc. A mans survival is dependent on theseneeds only on the primary level. Saying about wants it includes needs but it goes beyond that. Now a days consumer demands are unlimited but the resources are limited. It makes the demand margin to get higher, comparing with supply or resources. Scarcity is a stage when the wants are not satisfied up to the mark. When the production is insufficient to satisfy the demand for a particular commodity the problem of scarcity arises. Opportunity cost provides a benefit of choosing the best option available in the market after concluding the advantages and disadvantages. It also provides awareness towards choosing a product. From a business concern opportunity cost helps to maintain time management to make business decisions. Even opportunity cost involves limitations like consumption of a lot of time and opportunity cost is not considered by accountants.

Free Huckleberry Finn Essays: Ignorance :: Adventures Huckleberry Huck Finn Essays

The Adventures of Huckleberry Finn Ignorance While there are many themes expressed in the novel, The Adventures of Huckleberry Finn one makes a stronger presence by its continued, if not redundant display of itself. Far too often in society people's lack of knowledge on a given subject causes their opinions and actions to rely strictly on stereotypes created by the masses. This affliction is commonly known as ignorance. This is curable but people have to become open-minded and leave their reliance on society's viewpoints behind them. In the novel, The Adventures of Huckleberry Finn by Mark Twain, the ignorance of society becomes extremely evident at many parts of the book. Society forms ideals for all walks of life and then lets them become like stone in their minds. Thus, once a person has been put into a group they will remain there forever. The ignorance of society is clearly seen when one looks at Huck Finn, Jim the Slave, Pap, and the senseless violence of the Grangerfords and the Shepardsons. Many people see Huckleberry Finn as a mischievous boy who is a bad influence to others. Society refuses to accept Huck as he is and isn’t going to change its opinions about him until he is reformed and civilized. The Widow Douglas and Miss Watson try to "sivilize" Huck by making him stop all of his habits such as smoking, etc. They try to reverse all of his teaching from the first twelve years of his life and force him to become their stereotypical good boy. The rest of the town also refused to view him as good and he was considered undesirable. The only time that the town's people are able to put away their views of Huck was when there was excitement to be found, like when they all crowded on the steamboat to see if the cannons can bring Huck's body to the surface. Everyone got interested in him and tried to show that they cared about him, but this is only after he is presumed dead. They take on these views to follow society in its ignorance. Few of them would have cared abou t Huck before because they didn't know him and didn't want to know him, but since taking interest in mysteries was the popular thing to do, society did it. Although Huck is viewed in an ignorant light, he was also in accordance with this novel and very ignorant himself.

International Marketing Strategy: Philips Case

1: What are the key success factors (KSF’s) in the male shaving market? How are they different from the female shaving market? 2: How can Philips increase the worldwide share of †dry shaving†? 3: How will you characterize and explain the cross-national advertising †rowing boat† campaign? 4: Who are the target groups for the:a) †rowing boat† advertising campaign b) †gift† advertising campaign c) WilliansF1 advertising campaign5: What is the difference in the cooperative relationship that Philips has with Nivea (Cool Skin) and that with WilliansF1? 6: Discuss the internet as a part of a multiple distribution channel strategy for Philip shaversIntroduction:– Philips is a dutch diversified technology company headquartered in Amsterdam, Netherlands. The brand was founded in 1891 by Gerard Philips. Now, it is one of the largest electronics companies in the world (People: 122.000 – Countries: 60)– Currently, the bra nd â€Å"Philips† is organized in three divisions: – Philips consumer lifestyle – Philips healthcare – Philips lightingKey Datas:– Chairman: Jeroen Van der Veer – Revenue: About 25 billions of Euros. – Collaboration: Nivea in 1998 (The Cool Skin) – Sponsor: PSV Eindhoven football team – Motto: Sense and SimplicityMajor Inventions of Philips:– Audio Tape (1963) – Compact Disc with Sony (CD – 1982) – Senseo (Coffee machine – 2001) – Blu-Ray Disc with Sony (2006)1) What are the key success factors (KSF’s) in the male shaving market? How are they different from the female shaving market?Philips, the market leader in dry shaver owes its success to a mix of different elements . First of all, the research and development department offers innovations enabling the brand to market different new products all in line with consumer needs . Therefore , the consumer feels the difference and more prone to change. They speak of a rassage â€Å"more comfortable , without irritation , no nicks , no cuts† Thanks to advanced technology Philips managed to reduce boundaries between wet and dry shaving and thus seduce advantage of consumers. In addition, Philips emphasizes the saving of time and cost savings that can bring dry shaver.Secondaly, thanks to its partnerships with brands such as Nivea and WilliamsF1, Philips managed to make known its products but also to associate with brands whose image brands allows it to attract many consumers, but also to benefit from a high visibility at sporting events such as F1 races. Also, thanks to its partnership with Nivea, Philips seems to involve a brand for comfort and hydration during shaving. So we can say that thanks to two points, consumers show a high satisfaction it gives to Philips a significant advantage over its competitors. On the women's market, it is completely different because women are more receptive to the design and sensitivity of shavers. The women's market requires more advertising and promotions. Indeed, this is explained by the fact that the shaver women remains a touchy subject compare to the man market.2) How can Philips increase the worldwide share of †dry shaving†?The brand â€Å"Philips† must increase the worldwide share of â€Å"dry shaving† thanks to four points:– The first one, Philips must concentrate the efforts on the Asia Market – Some of countries, in Asia, have a very fast growth like China and India China: Increase of 67.5 % since 2009 (Male toiletries) India: Increase of 63.6 % since 2009 (Male toiletries) – Philips, have to spend more in Asia market (The brand spend five times more in USA than in China. – The market position in Asia is a weakness currently.– The second point is to continue to innovate. Indeed, we can see that Philips has a real strong competitors like Braun, Panasonic, Remington. Itâ₠¬â„¢s very important for a brand to innovate a lot. The customers must see clearly a difference between the old and the new shaver. People always want â€Å"A new product†. We can see in the history of Philips, that the shavers improved a lot.– Some datas: – 1939: First Philipshaver was introduced – 1966: Philipshaver 3 – Another generations – 1998: Collaboration with â€Å"Nivea†Ã¢â‚¬â€œ Philips has two options for a product innovations: 1) Development of a new product (With Marketing Analysis) 2) Improvement of existing products (Technical abilities)– The third point for Philips is to target the young people: – To be their first experience – To make them loyal to the brand – Philips can launch a targeting advertising campaign (Distribution in front of the schools)– The last point is to take shares from the wet shaving: – Wet shaving world shares: 60% – Dry shaving world shares: 40%Foc us that dry shaving avoid irritation, nicks and cuts in advertising campaign.3: How will you characterize and explain the cross-national advertising †rowing boat† campaign?We can see in advertising â€Å"Rowing Boat† campaign some important informations: – First of all, this campaign was launched for many countries (USA – United Kingdom – Germany and Spain) – We can see that the advertising is targeting: Men – Athletic men – We can see the competition and some symbolizes related with the brand â€Å"Philips†: – Three rotating blades– The water symbolizes the skin – Very exclusive sport – Top of the market (Philips)4: Who are the target groups for the:a: †Rowing boat† advertising campaignThis advertising campaign is basically for young men, we can see four rowers in the boat. We know that young men use mainly wet shaving, on this ad Philips tries to show them that dry shaving i s for us too. Then, We can say that it is for people with middle or high incomes, indeed rowing sport is basically for people who have a comfortable situation. To continue, This advertising aims to affect sportsmen, active people who take care of their body.b: †Gift† advertising campaignThis advertising aims to affect women and especially wives. There are three rings linked with the three rotary heads. In fact, this ad tries to make women realize that the equivalency of a wedding rings for a men is a dry shaver (Philips). It implies a new kind of present for men and a new way to think. It is usually launched during Chrismas or Birthdays.c: WilliansF1 advertising campaignFinally, this advertising want to reach people who love sport, cars but not common cars, very performing and fast cars. It implies that Philips shavers have the same characteristics than F1 racing cars. There is also the use of an opinion leader in the person of the F1 Driver. This advertising will have a massive tv effect.5: What is the difference in the cooperative relationship that Philips has with Nivea (Cool Skin) and that with WilliansF1?The relationship between Philips and Nivea brought a new product in a new market segment. It was the opportunity for Philips to widen its product range and for Nivea to differenciate its products. Basically, the relationship’s goal was to make a common product, to unite Philips and Nivea’s know-how in one product to make an innovative product (strategic partner). In comparison, The relationship with WiliansF1 was different, it was sponsorship. Philips wanted to unite its image to the F1’s image which means that Philips wanted to take profit of the popularity of F1 (brand endorsement), increase its awareness, strengthen its image and to show to people that the F1 characteristics (Fast & performing cars, precision, excellence) are the reflection of Philips products.6: Discuss the internet as a part of a multiple distribution channel strategy for Philip shaversAdvantages:– Adjusted advertisement – Direct feedbacks from customers – Availability of products all over the world – Possibility to have a direct relation with customers – Viral marketing, people will share on their walls, will like or comment Philips publication & ads – Multi channel strategyDisavantages:– People can make negatives posts on their websites & social network pages – Philips has to be always in the trend, its pages cannot be old fashioned and Philips has to make posts regularlyConclusionAs a conclusion we can say through continuous innovation Philips managed to impose on the market shavers . Indeed, the technologies proposed by Philips is fully in line with the needs of consumers † faster and more sensitive shaving†. Moreover, the choice of partners and advertising remains important because these through these that Philipse vehicle values and attracts a growing numb er of consumers. The adaptation of the communication strategy by country reveals that Philips puts particular emphasis on the needs of local consumers. Finally, Philips should focus on the Asian continent because some developing countries such as China and India has a fast growing enabling Philips to increase its turnover and increase its superiority over more its competitors.

The State Of Nature Is An Important And Relevant...

Erich Harkema Prof. Wolfe 10/1/14 Intro: The state of nature is an important and relevant philosophical idea that has been discussed and debated for a long time. The reason it is such a key topic in philosophy is it delves into the reasoning behind why man had to create political society. In order to properly understand the philosophy of the state of nature it is important to look at conflicting viewpoints about it in order to understand it with less bias. Thomas Hobbes and Jean Jacques Rosseau both have differing viewpoints regarding the state of nature. Hobbes feels that man’s natural state is cowardly, fearful, almost paranoid, so man created political society in order to protect himself. Rosseau, on the other hand, feels that man was much happier before political society was created. Their viewpoints differ regarding the state of nature, man’s phase after leasing their state of nature, and the basis and legitimacy of the social contract. 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