Discuss the types of controls that can be used in organizations.

Tesco Exits South Korea

Tesco was founded in 1919 by Jack Cohen (Cohen), who invested his serviceman’s gratuity of £30 in a grocery stall. The first private label product introduced by Cohen was Tesco Tea. The name Tesco was a combination of the initials of the tea supplier TE Stockwell, and the first two letters of Cohen’s name. Tesco opened its first store in 1929 in Edgware, London. In 1947, Tesco Stores (Holdings) Limited was floated on the Stock Exchange with a share price of 25 pence and the first supermarket was opened in 1956 in Maldon, Essex, England. The first superstore was opened in 1968 in Crawley, West Sussex. In the 1960s, Tesco went on an expansion spree and acquired several store chains. The Retail Price Maintenance (RPM) Act in Britain prohibited large retailers from pricing goods below a price agreed upon by the suppliers. To overcome this obstacle to price reduction, Tesco introduced trading stamps. These were given to customers when they purchased products and could be traded for cash or other gifts. RPM was abolished in 1964, and from then on, Tesco was able to offer competitively priced products to its customers in a more direct manner. The first Tesco superstore, with an area of 90,000 square feet, was opened in 1967.

TESCO’S GLOBAL EXPANSION
Tesco’s global expansion began in 1979, when it entered Ireland by acquiring a 51% equity stake in ‘3 Guys stores’. In 1986, Tesco divested itself of the stores after it found that it could not sustain its operations in the country as customers were rejecting the British products that it sold. During the late 1980s and the early 1990s, Tesco examined the options available in the US and European countries after the British government introduced new regulations on ‘out-of-town’ stores. In December 1992, Tesco entered France by acquiring an 85% equity holding in Catteau supermarkets, which operated under the Cedico brand with 72 superstores, 7 hypermarkets, and 24 small stores. However, Tesco failed to sustain itself in the market due to competition from French retailers like Carrefour and Promodès. In 1995, a law was passed in France which prohibited the opening of new large retail stores. Moreover, the company failed to adapt its products to suit local tastes and lost market share. In 1996, in spite of investing an additional £ 300 million in France, sales in the country grew by a mere 1%. In the year 1997, Tesco sold its operations in France to Prom odes.

TESCO IN SOUTH KOREA
In the early 1990s, there was a growing demand from consumers in South Korea for a modern shopping experience owing to rapid economic growth and increasing disposable incomes. The government had adopted protectionist policies and the retail sector was not open for foreign direct investment (FDI). Tesco

entered South Korea in 1999 through a joint venture with Homeplus, a unit of the country’s biggest business group Samsung Corporation (Samsung). In the next few years, Tesco became the most successful international retailer in the country. Its success was attributed to its ability to localize its products and stores to appeal to the South Korean consumers; its operating through local management; and its strong presence through different store formats. South Korea went on to become Tesco’s most successful international business in terms of revenue. As of 2014, it operated d 140 hypermarkets, 609 supermarkets, and 326 convenience stores.

TESCO’S STRATEGIES IN SOUTH KOREA
Immediately after entering into the joint venture, Tesco went about upgrading the store layouts. The stores were modified to resemble department stores, which were spacious and clean. Tesco’s stores in Korea did not resemble its stores in the UK or in other European locations like Hungary, Poland, the Czech Republic, and Ireland.

CHANGES IN THE OPERATING ENVIRONMENT
In October 2012, when Tesco posted its first fall in profits in 20 years, the company also announced that its profits in South Korea would take a £ 100 million hit due to the "retail market development bill” that had been passed by the government in November 2010. However, changes in the operating environment in South Korea due to new laws that were enforced beginning 2010 to protect small retailers and merchants started to impact Tesco and other large retailers. These laws placed restrictions on the locations where supermarkets could be opened. The Distribution Industry Development Act passed in 2012 imposed restrictions on the time for which the stores could remain open and also specified that on two weekends every month the large retail stores should be closed. As most Koreans shopped during the weekends, these restrictions started to impact Tesco, which made losses in 2015. Under the impact of the global recession, the private spending in South Korea fell. Another factor that impacted Tesco in South Korea was its UK business, which was not doing well.

TESCO’S EXIT FROM SOUTH KOREA
After several months of speculation, Tesco sold its South Korean stores to Asian private equity firm MBK Partners for £4.2 billion on September 07, 2015. On September 07, 2015, Tesco PLC (Tesco), a British multinational grocery and general merchandise retailer, announced that it had sold its South Korean business, operated under the name Homeplus, for £4.2 billion to a consortium of companies led by MBK Partners, a South Korean buyout firm. The consortium included Canada Pension Plan Investment Board, Public Sector Pension Investment Board, and Temasek Holdings (Private) Limited.

Case study question
The extract above mentions changes in operating environment in which Tesco functions.

Discuss in this context, the nuances of a Task environment.

Advance Macroeconomic

Please feel free to make use of graphs as you see fit

1.

a. Provide a detailed analysis of the four crucial components of the Classical Model: the labor market, Say’s Law, the loanable funds market and the quantity theory of money.

b. While making use of these four components, provide an explanation of why this model implies that there is no need for any aggregate demand management to maintain full employment. (Please emphasize, in particular, the role played by flexible prices and wages).

2.

a. Provide a detailed analysis of the three crucial components of Keynes’ Model: the consumption function, the determinants of investment demand and the speculative demand for money.

b. Assume that nominal wages are rigid. Use these components to explain why, in this model, the economy can come to rest at an equilibrium with involuntary unemployment.

c. What policy tools can be used to move such an economy to a state of full employment? Provide an analysis of how these tools can achieve this objective.

3.

a. Derive the IS and LM curves. Explain how the IS curve helps address a flaw in the Classical Model. And explain how the LM curve helps address a flaw in Keynes’ Model.

b. Using the IS-LM framework, determine the conditions under which monetary and fiscal policy will be most effective in restoring the economy to a state of full employment.

c. Does the emergence of a state of equilibrium with involuntary unemployment rest on the assumption of rigid nominal wages or does it rest on the existence of speculative demand for money? Use the IS-LM framework to provide an answer to this question.

4.

a. According to the most fundamentalist Keynesians in the 1950s and 1960s, changes in the quantity of money were deemed to have no effect on aggregate nominal income. How did these Keynesians arrive at this conclusion? What does such a view imply regarding the nature of the demand for money?

b. Provide a summary of the main arguments advanced by Friedman “to bring money back,” i.e., in support of the position that changes in the money supply do have a significant impact on aggregate nominal income?

c. According to Friedman money is non-neutral in the short run and neutral in the long run. Explain how he arrives at this conclusion. What are the implications of his argument for the validity of the Phillips Curve?

What are the benefits of foreign investors buying these assets?

United Kingdom and Tanzania

Address the following:

• For investment, either portfolio or foreign direct investment (FDI) in the each country, what index component(s) score or ranking in either of the two indices would
  • most encourage you to do business there?
  • most discourage you from doing business there?
  • Considering the risk and return and the data collected above and in the prior assignments, how likely would you be to invest in both countries? If you would invest, what would be your minimum required return in each country? Explain.
  • Use and cite a minimum of five sources.

This assignment is an individual-specific assessment of the industry in which you currently work or of the industry in which you intend to work after completing your MBA.  This assessment is composed of two parts. The first part of the assignment should discussion the sources of the value created within your particular industry.  Your brief document should address the following issues:

1. Brief description of your current or intended industry
2. Evaluation of the unique value created by your firm (for its customers) relative to all of its competition.  In other words, what makes your firm special for its customers.  The value may be derived from the quality of the product (relative to others on the market), customer service, overall purchase experience, or a combination of these and other factors.
3. Concluding discussion that addresses how the factors that influence value created in this industry may change over the next five years.

You should also be prepared to provide a very brief executive summary of your findings to the class (no slides) at 2:00 PM Eastern on Saturday afternoon.

The second part is the Practical Connection component for this class. You should reflect on how the specific skills or knowledge presented in this class may be applied in your current or intended career. This statement should not simply list the concepts covered to date --- it should focus on specific topics that are directly connected to your career or intended career. This part of the project should be at least 500 words or about 2 double-spaced pages.

Assume you are the manager of Wenstrom Brewing Company (WBC) and you face the following demand for your beer: QWBC = 12 - 3PWBC + 4PPBR. Suppose you sell your beer for $3.00 per bottle and PBR sells for $1.50 per bottle.

a. Is PBR a substitute or a complement? Explain. b. Calculate the cross-price elasticity of demand between WBC and PBR at the given prices. c. If you want to increase the level of beer you sell by 15%, how much should you change the price? Is this a good idea? Explain. d. Does your answer to part c change if the price of WBC were $2.50 per bottle? Explain. e. If advertising was included in the demand equation and the advertising elasticity was calculated to be 2, how much would consumption of your beer change if you increased the level of advertising by 4%?

discuss whether or not you think the ARRA was effective and useful? Were some parts of it more useful than others?

Discuss some of the broad options available for fixing the long-run problems associated with the social security retirement system.

Which options do you believe are socially justifiable? Explain

1. Consider a free market with demand equal to Qd = 900 – 10P and supply equal to Qs = 20P.

   1. What is the value of consumer surplus (CS) when the market is in equilibrium? What is the value of producer surplus (PS) when the market is in equilibrium?

   2. Graph the supply and demand curves and identify the equilibrium price and quantity on your graph. Show CS and PS on your graph of the demand and supply curves.

   3. Now suppose the government imposes a $15 per unit subsidy on the production of the good. What is the consumer surplus now? The producer surplus? Why is there deadweight loss associated with the subsidy, and what is the size of this loss?

   4. Explain in your own words what deadweight loss is and why it is relevant in the study of public sector economics.

GDP measures the:

1) Explain why an economy’s income must equal its expenditure. 2) List the four components of GDP. Give an example of each. 3) Why do economists use real GDP rather than nominal GDP to gauge economic well-being? 4) Explain the GDP deflator, its calculation, and its meaning. 5) Explain the inflation implication when we use GDP deflator to calculate