Price Elasticity of Demand Term Paper Example | Topics and Well Written Essays - 2000 words

Price Elasticity of Demand - Term Paper Example When elasticity is greater than 1 the quantity demanded changes to a greater degree than the change in price. The demand curve aligns increasingly aligns itself to the x-axis in the case of near infinite elasticity, meaning that the quantity demanded is particularly responsive to changes in price. This case is also known as being perfectly elastic and is shown in the graph below: From this demand curve, it is evident that an extremely minute change in price would lead to an infinitely large change in quantity demanded. This scenario can be applied to perfectly competitive markets or luxury items. When elasticity is less than one the quantity demanded response insignificantly to changes in price. Increase the price would increase revenue, and vice versa. As the elasticity approaches 0, the demand curve becomes parallel to the y-axis. So the quantity demanded becomes more or less independent of price. This is known as being perfectly inelastic demand. Integration is the concept of supp ly chain management that origins from microeconomics. The basic idea is to partner or collaborate with all the stakeholders relevant to the production of goods and services offered by an organization. There are several ways of doing so; we will look at each in detail along with its advantages and disadvantages. In horizontal integration, an organization merges with its competitor(s) that produce similar products. Advantages - The basic advantage of horizontal integration is that it may provide economies of scale. Increased distribution capacity and market access are also possible, leading to greater market share. Disadvantage - the major disadvantage is that since horizontal Integration restricts competition it might lead to the creation of conglomerates or even monopolies. This, in turn, can be harmful to the interests of end-consumers.

Analysis of IBM Organisation Assignment Example | Topics and Well Written Essays - 500 words

Analysis of IBM Organisation - Assignment Example Compared to any other organization in the USA, IBM is the Information Technology Company with the highest number of patents. The company has also established nine research laboratories in different places of the world (Emerson, 76). Moreover, the company has an excellent team of an employee with a high degree of qualifications, and which highly values teamwork. These factors have seen the company have a competitive edge over the other US-based IT companies. It keeps its customers supplied with the most recent discoveries in IT through its commitment to research. A well qualified and teamwork based team of employee ensures the success of the company through the collaboration of the teams to give the company’s customers the best products and services. The high level of patenting has served to ensure that other IT companies are prohibited from specializing in some areas that the company has patented as its empire. The organizations' principle level strategy is differentiation, wh ere the company has specialized in computer hardware and software production, as well as IT consultancy services for its customers. The company produces specialized products for its customers, depending on the organizational demand of the organization in question. The company produces its products and services based on customer’s centricity (Emerson, 18). This strategy has worked well for the company, allowing it to cultivate more customer loyalty and goodwill. The organization structure is an all-inclusive one, where the opinions and the suggestions of each of their management and employee team counts. It has a culture of collaboration, through which its innovation objective is realized. Both the structure and cultures of the organization are blended well to enhance teamwork and collaborated achievement. The match can be improved through leadership training for all, to ensure that all of the company employees serve as leaders in their different capacities. The organization s tructure is functional without any problems being experienced.