What should a site owner do if they think they might be affected by Panda?


How will webmaster come to know whether website is hit by Panda?

And, if  site is already hit, how to recover from Panda?

Answer: You need to read UNDERSTAND and implement Google Webmaster Guideline not when site hit but before and after that happens.

Implementation is a key.

Improve site contents on regular basis if possible.

Understanding Google Webmaster Guideline correctly – Success Factors for Implementation.

Answer from Matt Cutts ‎ Google Software Engineer:

Published on Sep 11, 2013

Reprinted with sole purpose to remind webmasters and website owners to read Google Webmaster Guideline.

Do not pay for SEO all info you every need Google provide.

But if you do not have time to read and follow simple and common scene instructions do not blame Google if your site is our of first page on Google Organic Search results
Some website owner looking for one single reason site was “hit” by algorithm update… ;-(

how to recover from google panda updateWhat counts as a high-quality site?

Our site quality algorithms are aimed at helping people find “high-quality” sites by reducing the rankings of low-quality content. The recent “Panda” change tackles the difficult task of algorithmically assessing website quality. Taking a step back, we wanted to explain some of the ideas and research that drive the development of our algorithms.

Below are some questions that one could use to access the “quality” of a page or an article. These are the kinds of questions we ask ourselves as we write algorithms that attempt to assess site quality. Think of it as our take at encoding what we think our users want.

Of course, we aren’t disclosing the actual ranking signals used in our algorithms because we don’t want folks to game our search results; but if you want to step into Google’s mindset, the questions below provide some guidance on how we’ve been looking at the issue:

  • Would you trust the information presented in this article?
  • Is this article written by an expert or enthusiast who knows the topic well, or is it more shallow in nature?
  • Does the site have duplicate, overlapping, or redundant articles on the same or similar topics with slightly different keyword variations?
  • Would you be comfortable giving your credit card information to this site?
  • Does this article have spelling, stylistic, or factual errors?
  • Are the topics driven by genuine interests of readers of the site, or does the site generate content by attempting to guess what might rank well in search engines?
  • Does the article provide original content or information, original reporting, original research, or original analysis?
  • Does the page provide substantial value when compared to other pages in search results?
  • How much quality control is done on content?
  • Does the article describe both sides of a story?
  • Is the site a recognized authority on its topic?
  • Is the content mass-produced by or outsourced to a large number of creators, or spread across a large network of sites, so that individual pages or sites don’t get as much attention or care?
  • Was the article edited well, or does it appear sloppy or hastily produced?
  • For a health related query, would you trust information from this site?
  • Would you recognize this site as an authoritative source when mentioned by name?
  • Does this article provide a complete or comprehensive description of the topic?
  • Does this article contain insightful analysis or interesting information that is beyond obvious?
  • Is this the sort of page you’d want to bookmark, share with a friend, or recommend?
  • Does this article have an excessive amount of ads that distract from or interfere with the main content?
  • Would you expect to see this article in a printed magazine, encyclopedia or book?
  • Are the articles short, unsubstantial, or otherwise lacking in helpful specifics?
  • Are the pages produced with great care and attention to detail vs. less attention to detail?
  • Would users complain when they see pages from this site?

Writing an algorithm to assess page or site quality is a much harder task, but we hope the questions above give some insight into how we try to write algorithms that distinguish higher-quality sites from lower-quality sites.

What you can do

We’ve been hearing from many of you that you want more guidance on what you can do to improve your rankings on Google, particularly if you think you’ve been impacted by the Panda update. We encourage you to keep questions like the ones above in mind as you focus on developing high-quality content rather than trying to optimize for any particular Google algorithm.

One other specific piece of guidance we’ve offered is that low-quality content on some parts of a website can impact the whole site’s rankings, and thus removing low quality pages, merging or improving the content of individual shallow pages into more useful pages, or moving low quality pages to a different domain could eventually help the rankings of your higher-quality content.

We’re continuing to work on additional algorithmic iterations to help webmasters operating high-quality sites get more traffic from search. As you continue to improve your sites, rather than focusing on one particular algorithmic tweak, we encourage you to ask yourself the same sorts of questions we ask when looking at the big picture. This way your site will be more likely to rank well for the long-term. In the meantime, if you have feedback, please tell us through our Webmaster Forum. We continue to monitor threads on the forum and pass site info on to the search quality team as we work on future iterations of our ranking algorithms.

Some ideas on how to evaluate the quality of a site:
http://googlewebmastercentral.blogspo…

Have a question? Ask it in our Webmaster Help Forum: http://groups.google.com/a/googleprod…

Want your question to be answered on a video like this? Follow us on Twitter and look for an announcement when we take new questions: http://twitter.com/googlewmc

More videos: http://www.youtube.com/GoogleWebmaste…
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Webmaster Central: http://www.google.com/webmasters/

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Joint Ventures


joint venture (JV) is a business agreement

A joint venture (JV) is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity.

By Alla Gul (MBA)Our Contributor

A joint venture (JV) is a legal organization that takes the form of a partnership in which individuals, groups of individuals, companies, or corporations jointly undertake a transaction for mutual profit (“Joint Venture”, n.d.).

The parties agree to create a new entity by contributing equity.

Then they share in the revenues, expenses, and control of the enterprise. This paper discusses why joint ventures may be formed and what benefits may be expected when domestic and foreign companies form a venture. Then resent joint venture example is briefly illustrated.

The partnership can happen between big companies in an industry to differentiate, for example. The joint venture can occur between two small businesses that partner in order to successfully fight their bigger competitors. In addition, companies with identical products and services can also join forces “to penetrate markets they wouldn’t or couldn’t consider without investing tremendous resources” (“Joint Venturing”, n.d., p. 2). Next, a large company can decide to form a joint venture with a smaller business “in order to quickly acquire critical intellectual property, technology, or resources otherwise hard to obtain, even with plenty of cash at their disposal” (“Joint Venturing”, n.d., p. 2). To add, “There are good business and accounting reasons to create a joint venture with a company that has complementary capabilities and resources, such as distribution channels, technology, or finance” (“Joint Ventures (VS)”,  n.d.). Below are some major reasons for forming a joint venture:

Internal reasons

1.         Build on company’s strengths

2.         Spreading costs and risks

3.         Improving access to financial resources

4.         Economies of scale and advantages of size

5.         Access to new technologies and customers

6.         Access to innovative managerial practices

Competitive goals

1.         Influencing structural evolution of the industry

2.         Pre-empting competition

3.         Defensive response to blurring industry boundaries

4.         Creation of stronger competitive units

5.         Speed to market

6.         Improved agility

Strategic goals

1.         Synergies

2.         Transfer of technology/skills

3.         Diversification

(“Joint Venture”, n.d.). 

Joint ventures between companies headquartered in different countries can be particularly beneficial. First, companies may use joint ventures to gain entrance into foreign markets. For example, foreign companies form joint ventures with domestic companies that already are present in markets the foreign companies would like to enter.  Moreover, due to local regulations, some markets can only be accessed via joint venturing with a local business (“Joint Venturing”, 101, n.d., p.2). For example, China and to some extent India, require foreign companies to form joint ventures with domestic firms in order to enter a market (“Joint Venture”, n.d). Next, the foreign companies “generally bring new technologies and business practices into the joint venture, while the domestic companies already have the relationships and requisite governmental documents within the country along with being entrenched in the domestic industry”( “Joint venture”, n.d.). For example, joint ventures are common in the oil and gas industry, and are often formed between a local and foreign company. “A joint venture is often seen as a very viable business alternative in this sector, as the companies can complement their skill sets while it offers the foreign company a geographic presence” (“Joint Venture”, n.d.).

Recently the Hindustan Aeronautics Limited (HAL) and CAE, Canada signed an agreement to establish a joint venture company that will open a helicopter simulator training center in Bangalore, India.

The company, Helicopter Academy To Train By Simulation Of Flying (HATSOFF), will be owned equally by HAL and CAE. The training center is expected to begin operations in late 2008 by providing both civil and military helicopter pilot and maintenance training services. (“HAL”, 2007)

Questions to Answer Before You Approach a New Joint Venture Partner

Questions to Answer Before You Approach a New Joint Venture Partner.
Click to read more…

CAE is a world leader in providing simulation and modeling technologies and integrated training solutions for the civil aviation industry and defense forces around the globe (“About CAE”, n.d.). The Hindustan Aeronautics Limited (HAL) is in the list of top 100 defense companies in the world (“HAL 34th”, n.d.). Among its products are helicopters, aircrafts, advances communication and navigation equipment, and aerospace equipment (“Our Products”, n.d.). By forming the joint venture, the CAE is trying to extend its business-jet training network, to expend its distribution channels, to increase sales of its stimulators, and to capture and extend into India’s growing market (“Remarks for”, 2007,  p.3).  For the Indian partner, this joint venture provides the opportunity to differentiate, to acquire new skills and technology and to extend its marketing reach. Finally, both companies are expected to benefit from a development of a new market and from growth in revenues and profits.

To conclude, a joint venture is a strategic alliance where two or more parties form a partnership to share markets, intellectual property, assets, knowledge, and,  profits. (“Joint Venturing”, n.d., p.1).  The partnership may be formed between domestic companies or between domestic and foreign partners. When carefully planned and successfully implemented, joint ventures bring multiple benefits to parties involved

 By Alla Gul (MBA)Our Contributor


References

About CAE. CAE Inc. Retrieved September 26, 2007 from

 http://www.cae.com/www2004/About_CAE/index.shtml

HAL, Canada’s CAE ink joint venture for helicopter simulator training center. (2007).

Yahoo Business News. Retrieved September 26, 2007 from  http://in.news.yahoo.com/070926/139/6l8gn.html

HAL 34th among top 100 defense firms. Hindustan Aeronautic Limited. Retrieved

 September 26, 2007 from http://www.hal-india.com/34th.asp

Joint ventures. Cornell University Law School.  Retrieved September 26, 2007 from

 http://www.law.cornell.edu/wex/index.php/Joint_venture

Joint venture. Wikipedia. Retrieved September 24, 2007 from

 http://en.wikipedia.org/wiki/Joint_venture

Joint ventures (JVs). E-coach: Sharing Capital, Technology, Human Resources, Risks

 and Rewards. Retrieved September 26, 2007 from

 http://www.1000ventures.com/business_guide/jv_main.html

Our products. Hindustan Aeronautic Limited. Retrieved September 26, 2007 from

 http://www.hal-india.com/products.asp

Remarks for first quarter fiscal year 2008 results. (2007). CAE. Retrieved September 26,

 2007 from

http://www.cae.com/www2004/Investor_Relations/PDF/2008/CAE_FY08Q1_Remarks-en.pdf

Scott Allen. Joint venturing 101. About.com- Entrepreneurs. Retrieved September 26,

 2007 from http://entrepreneurs.about.com/od/beyondstartup/a/jointventures.htm

History of Income Tax in the United States


History of Income Tax in the United StatesThe history of income tax in the United States is also a study in irony.
As an English colony, the American Revolution began with the slogan of “taxation without representation is tyranny.” Today, we have plenty of representation, but the tax burden is heavier and very fluid.

The concept of taxing income is a modern innovation and presupposes several things: a money economy, reasonably accurate accounts, a common understanding of receipts, expenses and profits, and an orderly society with reliable records. For most of the history of civilization, these preconditions did not exist, and taxes were based on other factors. Taxes on wealth, social position, and ownership of the means of production (typically land and slaves) were all common.

A Brief History of Income Tax in the United States

In the Beginning

As a new nation, the United States Constitution becomes the centerpiece of government in this country with each colony adopting it by 1787. One of the provisions of the Constitution allows the federal government to tax the people as it sees fit. Pennsylvania was the first to object to a tax.

Pennsylvania was the first to object to a tax.Originally, any tax proposal would fund the daily obligations of running a central governing body for the good of the nation. Congress would establish a federal individual income tax in 1861 to raise funds to support the Civil War effort.

They let that federal income tax expire in 1872 and soon came to the reality that funding the government was a top priority and that each citizen must participate in that effort.

The implementation of an initial federal income tax was not lasting as the Supreme Court votes it unconstitutional in 1894.
Congress did adopt and enforce the corporate income tax in 1909 while, at the same time, beginning talks about a Constitutional amendment to establish a federal income tax.

The Sixteenth Amendment

Congress approves and adopts this amendment in 1913 and the annual collection of an individual income tax begins. People with income above $500,000 pay the highest income tax rate of 7%.
In 1914, the Bureau of Internal Revenue presents the first Form 1040 even as members of Congress were vocal about the fact that the form was too complex.

Over the next sixty years, the income tax rate gradually rose to a record high of 94% and drops to 80%, where it settles until the late 1960s. When it began, the income tax in the United States was grossly unfair. Yet, over the years, fixing it only made it grossly unfair, complex, arbitrary and corrupt.

It was under President Howard Taft that the constitutional amendment legalizing a personal income tax and a corporate income tax came into being.
Taft’s proposal was brilliant, ahead of its time and became the law in 1913 as his term was ending.
President Woodrow Wilson and a solid Democratic Congress were prompt to enact a personal income tax.

A Two-Tax Dilemma

Deductions from income, a feature of the first federal personal income tax remains to this day. It reduces taxable income by the amount of the deductions. The corporate income tax, a temporary setup, remains in effect to this day allowing the upper class, who own businesses and optimize their riches, to use the two taxes to their advantage.

The lawyers and accountants, working within the system, were capable of finding creative legal methods to utilize the two systems to the client’s advantage. Congress spent many hours with income tax reform to outlaw or regulate these loophole advantages. While its goal was admirable, they only made the tax code more cumbersome.

One consequence of keeping the corporate and personal income tax separate was public accusation of unfair practices.

The rich are not paying their fair share to support the government and its infamous budget.

Internal Revenue Service

History of Income Tax in the United States

A Brief History of Income Tax in the United States

During the mid-to-late 1950s, the Bureau of Internal Revenue became the Internal Revenue Service (IRS). Its Commissioner and Chief Counsel are appointments made by the President and brought to the Senate for confirmation.

Forty years later, the IRS Restructure and Reform Act brought a reorganization meant to resemble an organization in the private sector. The new model was one of customer service grouping customers with similar needs together.
April 15th is Tax Day, although it was not always the deadline for filing the individual income tax.

The IRS Mission
Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

This mission statement describes our role and the public’s expectation about how we should perform that role.

  • In the United States, the Congress passes tax laws and requires taxpayers to comply.
  • The taxpayer’s role is to understand and meet his or her tax obligations.
  • The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply pay their fair share.

income tax in usaRevenue and Expense Precipice

The accounting system for the balance of incoming revenue and outgoing expenses suffers abandonment in favor of limitless spending and then borrowing to finance spending. Income tax monies became bailouts for large companies. These companies are so vital to the economy that we could not allow them to fail.

The 10-year tax breaks from President Bush’s stimulus packages are on extension for one or more years. With the advent of a new presidency, income tax reform is more than just a possibility.
The United States’ debt ceiling reaches a new height almost everyday and revenues cannot possibly sustain the growth of this debt.
A new world order is emerging and the history of income tax in the United States is about to acquire a new chapter.

MARKETING STRATEGY CONCEPTS


SUMMARY MARKETING STRATEGY CONCEPTS

__________________________________________

Currently I am working on Part 2 with concentration on “Online Marketing”

Some of the questions of  “Online Marking Strategies”  will cover:

Below some of the fundamental questions to understand the business before start thinking about business strategies:
Do you have list of your competitors?
Why are you better than your competitors?
Where will your company be in 3-5 years?
Does your company have mission or vision statement, or do you have statement of company value?
How are you marketing your business?
Who are your target audience, target geographic area and how to define it?
How often you visit your competitor’s website and what are the reasons to do it?
What is the best time to send Mass Mail and why?
How to promote on Social Media Websites?
Why social media networking does not work despite resources spent?
What is gorilla marketing and how to use it to increase profit?
And more…
come back for more updates
__________________________________________


The Marketing Mix

The Marketing Mix is a combination of five marketing components that are integrated into the marketing strategy. In the Marketing Strategy the company decides what the most appropriate mix is. These components are also referred to as the 5 Ps :

Product

Market (or Place)

Promotion

Pricing

Distribution (or Placement)

The Product

A Product is a package of benefits as perceived by the consumer. In developing a product strategy you have to address several issues:

  • Determine the product/service need
  • How do you serve the need profitably?
  • Do you have the capability to fill the need?
  • What will the effect be on other products?
  • Will it enhance the company’s image?
  • How will the competitors react?

The Market

A “market” is subdivided into market segments. Each market segment represents a group of potential consumers with similar needs and interests. The target market segments are identified in the Marketing Segmentation Analysis. There are many ways to segment a market and they are not mutually exclusive:

  • Demographic: age, gender, family size, marital status, etc.
  • Geographic: language, regions, government, etc.
  • Psychographic: hobbies, lifestyle, interests, etc.
  • Product Usage: frequency, purpose, etc.

“There is no such thing as one market. There are only market segments”

A “Fit” Analysis is carried out to evaluate the market segments against key objectives and issues such as: corporate goals, corporate strengths/weaknesses, growth objectives, market share objectives, competitive threats/opportunities, and the need to maintain focus.

Promotion

Promotion involves communicating the marketing message of your product to the potential buyers. The components of marketing communications strategies are:

  • Target
  • Intensity
  • Message
  • Medium (Push versus Pull)
  • Economics

The push strategy is more commonly used when you have to deliver a more complex message to the consumer.

Price

What is the appropriate price? Market research can help you estimate what customers are willing to pay.

To set your price you have to understand the relationship between fixed cost, variable cost, contribution, profit impact, and break-even volume. Break-even Analysis is a tool used to analyze these relationships.

You cannot charge any more than what the consumer perceives as the value of the product/service compared to the other available choices.

Pricing Strategies can be set to:

  • gain market share
  • prevent market share
  • meet competition
  • price leadership
  • prevent cannibalization
  • milk product

Distribution

Distribution involves getting the product from where it is produced to where the consumer purchases it. Types of distribution Strategies are:

  • Selective Strategy: the availability of the product is limited
  • Intensive Strategy: the product is available everywhere
  • Direct Distribution: the product goes directly from the producer to the consumer
  • Indirect Distribution: there are intermediaries between the producer and the consumer (e.g. wholesaler, retailer

If you are looking for:

  • sample marketing strategy
  • marketing communication strategy
  • sales and marketing strategy
  • marketing strategy consulting
  • product marketing strategy
  • marketing strategy planning
  • ecommerce marketing strategy
  • internet marketing strategy software
  • search engine internet marketing strategy
  • internet email marketing strategy
  • marketing strategy training
  • consumer marketing strategy
  • trade marketing strategy
  • efficient collaborative retail marketing

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Pricing Strategies. Several major factors influence the pricing for a product or service.


what-is-marketing

Marketing is the process of communicating the value of a product or service to customers

By Alla Gul (MBA) – Our Contributor

Pricing analysis is an important part of marketing.

In marketing Price Analysis refers to the analysis of consumer response to theoretical prices in survey research.

In general business, Price Analysis is the process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit/fee.

Price analysis may also refer to the breakdown of a price to a unit figure. Usually per square metre or square foot of accommodation or per hectare or even square metre of land. The price with suitable adjustment for various differences, is then applied to the valuation problem.

The following are the foremost strategies that businesses are likely to use:

First, strategic goals greatly influence pricing.
For example, if the business really wants to get into a new market, then it might charge lower than usual prices in order to generate more customers who buy the service.
Penetration pricing is one of the methods to be used in this case. Next, the business might consider changing pricing if the demand for its products is very high or low.  Promotional pricing is going to be appropriate in this situation. The lose leader strategy may be implemented as a kind of a promotional pricing. Finally, competitor pricing also has a great effect.  If competitors are charging much less, then the business might do well to lower prices. Similarly, if the competitor is charging much more, then the business might consider increasing its own prices.  Market pricing method may be used here.

Below are examples of companies that use different pricing methods appropriate to their particular circumstances.

  1. Penetration pricing: Price way low to enter the market.

This practice generally involves pricing below the competition to gain market entry. Penetration pricing is the pricing technique of setting a relatively low initial entry price, a price that is often lower than the eventual market price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. For example, penetration pricing was implemented by Vietnamese manicure and pedicure salons to gain market entry and to increase its market share. About twenty years ago, only wealthy women routinely had manicures and pedicures. Then, Vietnamese manicure/pedicure salons were introduced. While the old shops charged about $25 for a manicure and $45 for a pedicure, at a Vietnamese shop the price was as low as about $25 for both plus additional free services. As a result, many traditional salons lost their loyal customers to new Vietnamese places. In addition, many new customers for these services appeared since prices became more affordable. Today millions of ‘regular’ women make the weekly or biweekly trek to have a manicure and a pedicure in these salons regardless of slightly increased prices.

  1. Personalized pricing: Firms charge different prices to different consumers.

Many companies use personalized pricing to sustain competition, to remain in business, and to grow their business. For example, the United States Postal Services has been offering Negotiated Service Agreement (NSA). It’s a contractual agreement between the Postal Service and a customer to provide pricing incentives to the customer in exchange for a shift in their business mailing practices. According to Stephen M. Kearney, Vice President of Pricing and Classification,

Negotiated Service Agreement, or “NSA,” simply means negotiating pricing with our customers. In many cases, the customer’s behavior change may result in a substantial increase in their mail volume that benefits both the customer and the Postal Service… Today more than ever, the marketplace is very competitive. Businesses need to negotiate pricing to retain customers, to reflect customer needs (such as volume or ease of service), to encourage customer reliance for long-term growth, and to encourage customers to try new products or services. There are many alternatives to mail, and most of them claim to offer better economics, either in cost or return on investment (ROI). Many Postal Service competitors negotiate pricing to win business. The Postal Service needs to negotiate pricing in order to retain and grow its business.

Note: Please read complete interview at the USPS web site at http://www.usps.com/mailerscompanion/mayjune2004/mc0604art1.htm

3. Market pricing:Pricing at the same level as the competition.

A firm has to assess how its product relates to a competitive product and set its price at a comparable level to stay competitive. For example, most agricultural commodities are sold in markets where price has been established by broad market forces. For example, livestock, milk and dairy products, meats, grain, poultry, eggs, etc. are sold at this pricing. While producers in such markets can’t set price, they usually have a ready market for their entire production. Sellers in commodity markets are basically price takers and have to accept the market price. The Upstate Dairy Farms (NY), our local dairy company, is using a market pricing technique for its products. In fact, prices for their milk, butter, and other dairy are very close to similar products of other producers. Another example of companies that use market pricing is fast food restaurants. Their prices are based on market prices that is, what the market will bear. For instance, the market has a set price for a cheeseburger, and restaurants must follow that price. If McDonalds or Burger King will offer a $15 cheeseburger, a vast majority of their current customers (if not all) will not buy it. In other words, the market simply wouldn’t bear it.

  1. 4. Cost-plus pricing:The cost of production plus a designated percentage is cost-plus pricing.

This method is useful in situations where costs are not known in advance. An example would be custom orders in the initial stages of developing a new product. For example, a group of friends of mine opened a company named InfoTech some time ago. They provide different IT services. As they explained to me, often it is very difficult to set a price at the beginning of the project, since projects sometimes are very different and additional details are reviled only in the middle or at the end of the project. So, first they calculate approximately what the price should/could be in order to cover all expenses and add  money on top of it. The price quoted to the buyer is “cost plus” rather than a specific price, and the final price will be established after completion of the project, when all costs are known. The company uses this methodbecause it is relatively easy to implement. However, the cost-based pricing ignores the competition and doesn’t consider what the product is worth to the buyer. A pricing procedure that is not responsive to changes in the market may work initially, but can be a significant obstacle to long-run success.

5. Loss leaders: A company loses money on one service but earns on a related product.

This strategy is often implemented as a part of a promotion campaign. The intent of this practice is not only to have the customer buy the (loss leader) sale item, but other products that are not discounted. These bargains will attract customers who may then purchase other products/services even if they don’t buy the product which price had been initially reduced. This is where a company will make up for the loss as it will be selling other items that generate high profits. One example is HP inkjet printers that are often sold to retail customers below their true value, at a price which seems to be affordable to most consumers.

Moreover, these printers are sometimes offered for free – free after rebate, free with a purchase of an HP computer, etc. However, consumers have to pay the regular price for ink cartridges. It is ink cartridges, not the printers that generate high profits for the HP.

Another example is Gillette’s safety razor handles that are sold at a loss, but sales of disposable razor blades are very profitable.

Major forces influencing pricing are company’s strategic goals, demand for its products or services, and/or competition. Management should pay particular attention when deciding on pricing methods since the success of the entire business depends on it.


Short WIKI.

What is MBA anyway?
An MBA is a post graduate degree in business communication. MBA stands for Masters of Business Administration and is a very popular course for business students the world over. The MBA program is recognized worldwide and is considered as a major step towards a successful business management career.
For more information about social media networking and SEO tips, tricks, social media  good practice, online tools and how to market your site visit Syracuse Web Designer Agency Website

Economics and its Effect on Business. This is economics and history as they are meant to be: fascinating, informative, and motivating.


Economics and its Effect on Business and on Human Resources and Marketing

In short: Economics is the study of how people choose to use resources.

Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia, “management of a household, administration”) from οἶκος (oikos, “house”) + νόμος (nomos, “custom” or “law”), hence “rules of the house(hold)”.[1] Current economic models developed out of the broader field of political economy in the late 19th century, owing to a desire to use an empirical approach more akin to the physical sciences

What is Money?

Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime, education, the family, health, law, politics, religion, social institutions, war, and science. The expanding domain of economics in the social sciences has been described as economic imperialism

Economics and its Effect on Business

Economics is the study of how society manages its scarce recourses (Mankiw, 2004, p.4). Since all businesses are part of the economy, the way economy works has a major influence on all functional areas of business. This paper shows how changes in economic activity and inflation affect business as a whole and its Human Resources and Marketing functional areas in particular (“Level 2 Business,” n.d.).

Economic activity changes due to different reasons. Rate of growth at which economic activity changes is called economic growth (“Level 2 Business,” n.d.).  At the time of slow economic growth or recession, people loose their jobs, unemployment level goes up, and income level decreases. As a result, demand for goods and services falls and sales slow down.  Businesses have to consider accommodating to such changes in demand. To illustrate, in order to adjust to a falling demand, a company tries to cut prices to increase sales while suffering lower revenue and decreased profit margin .Thus, the firm might decide to cut back on production and/or reduce number of employees (“Level 2 Business,” n.d.). At the time of economic growth demand and sales increase, unemployment falls, and production goes up as businesses try to cope with the increased demand, Businesses try to accommodate these changes. For example, in order to keep up with the growing demand and increase in production level, firms might reconsider changes in the use of production equipment, changes in equipment or production facilities,  amount of  recourses needed (“Economics Basic,” n.d.  Time and Supply section, para. 1).  All of the above might bring production costs up. This, in turn, brings up prices for goods and services (“Level 2 Business,” n.d.). To control growing cost of production, businesses might decide to cut waste, to change the way people work, to use new technology, or to reconsider number of staff they employ.

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Money, Banking and the Federal Reserve

(45minutes video documentary ..we might not agree with some of the opinions but it worth to watch…

This is economics and history as they are meant to be: fascinating, informative, and motivating.
Thomas Jefferson and Andrew Jackson understood “The Monster”. But to most Americans today, Federal Reserve is just a name on the dollar bill. They have no idea of what the central bank does to the economy, or to their own economic lives; of how and why it was founded and operates; or of the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates.

Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salerno, Hans Hoppe, and Lew Rockwell, this extraordinary film is the clearest, most compelling explanation ever offered of the Fed, and why curbing it must be our first priority.

How an Economy Grows and Why It Doesn’t (by Irwin Schiff)

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Inflation is a rise in a general price level over a period of time (Mankiw, 2004, p.12). For example, prices for goods and services, prices for raw materials, and prices for individual as well as firms insurance go up. It becomes difficult for businesses to plan ahead since inflation affects not only the amount received from for sales but also the prices of input.  Businesses might start paying higher salaries to their employee to keep up with inflation. In addition, prices of raw material go up.

As prices of input increase, a cost of production goes up causing an increase in prices. If wages do not rise by the same level as inflation, spending power is affected, savings level can also fall. This leads to a decrease in income and decrease in demand and sales follow. Again, firms take action in order to accommodate these changes (“Level 2 Business,” n.d.).

Motivators More Powerful than Money?

What Is Economics?

Human Resources (HR) and Marketing areas of business are affected by changes in economic activity and inflation. Because Human Resources functional area is responsible for recruitment, retention, training, conditions of work, health and safety, and worker representation, it has to consider rising or falling unemployment that results from changes in economic activity or inflation. When unemployment rate is rising, the HR department must deal with issues associated withlayingoff firm’s employees, for example. The department can take necessary actions to make this process less painful and less problematic as possible for both the company and its employees. For example, it assists employees to understand and adjust to a new situation. In addition, Human Resources may provide job training to the remaining employees in order to meet changes in their new or expanded job duties.

During increase in economic growth or inflation,   when the level of unemployment is low and firms are in need of more workers, it becomes difficult to recruit necessary employees. The department has to make additional efforts in recruitment in order to get labor. Human Resources is also responsible for retention of company’s labor. The department usually plans for and takes actions that will help a firm to retain its workers. For example, they can provide develop and foster programs aimed at increasing employee satisfaction. The department often considers a possible pay raise to hire new or retain its existing labor force.
Because Marketing department is responsible for market research, market analysis, market strategy, and sales, it pays particular attention to the economic situation to see how current or future demand, prices and sales are going to be affected. This helps to determine actions a firm should take or plan on taking in order to succeed or, at least, to stay in business. For example, observing slow economic growth or inflation when demand and sales are falling, the department will try to cut production and selling costs (“Level 2 Business,” n.d).

Changes in Economic Activity

Changes in Economic Activity

Moreover, it may reconsider and adjust projected sales and prices as well as company’s marketing strategy.  In the time of economic growth when demand and sales increase, unemployment falls, and production goes up, Marketing must consider how to accommodate these changes and adjust production and sales strategy as well as prices accordingly.
In addition, knowledge of current or anticipated economic situation is essential when planning for a new product. Based on the discovery and recommendations of the Marketing department, other departments can properly plan or adjust their work.

To summarize, all functional areas of business including Marketing and Human Resources are affected by changes in economic activity, changes in inflation rate, and other possible changes in economics. These departments as well as entire company should recognize the impact of current and possible future economic situation on business, and take actions in order to accommodate these changes.

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References

Economics Basics: Demand and Supply. Investopedia: A Forbes Media Company

Retrieved September 3, 2007 from http://www.imvestopedia.com/university/economics/economics3.asp

Level 2 Business and economics: The Economic context of business. Level 2

Business and Economics Education. Retrieved September 3, 2007 from

http://www.bized.co.uk/educators/level2/external/lesson/context1.htm

Mankiw, G. (2004). Principles of Economics.Mason, OH: Thomson South-Western

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The 22 immutable Law of Marketing and Global Financial Crisis


"The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! " – Book Review.

During recession and global financial crisis it is even more interesting to discuss this book.
The global financial crisis of 2008–2009 began in July 2007 when a loss of confidence by investors in the value of securitized mortgages in the United States resulted in a liquidity crisis that prompted a substantial injection of capital into financial markets by the United States Federal Reserve, Bank of England and the European Central Bank. The TED spread, an indicator of perceived credit risk in the general economy, spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008, reaching a record 4.65% on October 10, 2008. In September 2008, the crisis deepened, as stock markets worldwide crashed and entered a period of high volatility, and a considerable number of banks, mortgage lenders and insurance companies failed in the following weeks.

Al Ries and Jack Trout refer to these principles as "laws". Their book, entitled "The 22 Immutable Laws of Marketing" is one of my favorites.

What do you think about "22 immutable Law of Marketing"?
Are there more marketing laws?
Why these marketing laws are immutable?

(sorry for pure quality of video)

1 The Leadership It’s better to be the first than it is to be better. Executive Summary Being first in any category is going to give you the edge -being the leader comes from being first. It’s much easier to get into the mind of consumers first that try to convince people you have a better product or service than the one that did get there first. Improvements are always made to product/service inventions and innovations but the first in has a head start. Once you are the leader, a position mostly gained by being first, it is pretty hard for competitors to dislodge you, as long as you keep your products up to date and of comparable quality. Further, the first in to the market has the opportunity to have its brand name adopted as the generic category name. Once you are first and get the consumers to buy your brand, often they won’t bother to switch. People tend to stick with what they’ve got.
2 The Category If you can’t be first in a category, change the nature of the category or set up a new category you can be first in.
3 The Ladder The strategy to use depends on which rung you occupy on the ladder.
4 Duality In the long run, every market becomes a two-horse race.
5 The Mind and Perception Marketing is not a battle of products, it’s a battle of perceptions; and sometimes it’s better to be first in the mind than to be first in the marketplace.
6 Focus The :lost powerful concept in marketing is owning a word in the prospect’s mind. "
7 Extension There’s an irresistible pressure to extend the equity of the brand.
8 Exclusivity and Superiority Owning a superior position in the customer’s mind is vital; marketing is a continuous search for exclusivity.
9 Division Over time, a category will divide and become two or more categories.
10 The Heart (Emotion) Marketing strategies without emotion will not work.
11 Attributes When you have to focus on attributes, for every one of them, there is an opposite and effective attribute.
12 Candor When you admit a negative, the prospect will give you a positive.
13 Sacrifice You have to give something up in order to get something.
14 Success Success often leads to arrogance, and arrogance to failure.
15 Failure Failure is to be expected and accepted.
16 Unpredictability Unless you write your competitors’ plans, you can’t predict the future.
17 Hype The situation is often the opposite of the way it appears in the press.
18 Acceleration Successful programs are not built on fads, they’re built on trends.
19 Perspective Marketing effects take place over an extended period of time.
20 The Opposite If you are shooting for second place, your strategy is determined by the leader.
21 Origin Where brands come from is often more important than how good they are.
22 Resources Without adequate funding and expertise an idea won’t get off the ground, and a brand cannot be built.

Expert’s Advise:

Donald Trump and Robert Kiyosaki
Follow theses principles and apply them to whatever you need. If you continue to confuse pride with confidence you will never learn to learn.

During recession and global financial crisis it is even more interesting to discuss this book.

What do you think about "22 immutable Law of Marketing"?
Are there more marketing laws?
Why these marketing laws are immutable?

Please leave your comments below.